What Insurance Do I Really Need?

There are a lot of types of insurance, from auto insurance to health insurance, renters insurance to ranch insurance. What types of insurance do you really need? Read on to find out.

The Obvious

These are types of insurance everyone should have, no matter where you live, what you do, or what your personal condition is.

  1. Health and disability. Your employer might provide it, or you might get it through the insurance marketplace or from your state, but you need health insurance. Pricier plans will cover everything from a doctor’s visit for the sniffles to a routine checkup; more economical models are there for the big stuff, like an unexpected diagnosis or an accident. Some will also provide supplemental income in case you’re laid up for a long time in recovery, and you should also look into long term care insurance.
  2. Long term care insurance. That’s right, you already read about this one, but it’s so important that it’s worth repeating. Long term care insurance is there for when chronic illness, disability, accident, or simply old age mean that you need help on a daily basis for a long time. This might just be help with dressing and eating, or it might be skilled nursing care and therapy, but whatever you need it will not be cheap. Most regular health insurance policies don’t pay for long term care insurance, but if you ever need it you will really wish you had it. Obviously, premiums are less if you are young and healthy.
  3. Auto insurance. THis is another one that everyone needs, unless you’re one of the few people in the United States who doesn’t regularly drive a vehicle of some kind. Every year there are six million auto wrecks in the United States, and the average driver is involved in an accident once every 17.9 years. That wreck can cost thousands in car repair, and even more if you are fault and damage someone else’s vehicle. Then there can be medical costs for yourself or someone else, and a good auto insurance policy will help you cover all that.
  4. Homeowner’s insurance or renter’s insurance This is one that some people think they can skip, but if there’s a burglary or fire, a natural disaster or just really bad weather, a gas leak or a plumbing nightmare, renter’s insurance and homeowner’s insurance will save your bacon. You need to protect both your home investment and all the items in it.
  5. Life insurance. This is one that a lot of people overlook, but the reality is that you could die unexpectedly. That would leave your loved ones in a difficult spot. At the least, you should have enough life insurance to cover the cost of your funeral and burial. If you have family who depend on you financially, you should carry a policy that would allow them to live for at least a few months without your income stream until they work out what to do next. Some health insurance policies carry life insurance as well, so it’s worth checking if you already might have it or if it can be tacked on to your health insurance at low cost.

Other Insurance

There are other types of insurance that it might be worth considering depending on your condition and situation.

  1. Pet insurance. Obviously if you don’t have a pet this isn’t for you. But medical care for a beloved pet can add up quickly.
  2. Travel insurance. You don’t need it if you don’t travel, but this can literally save your life if you have a serious issue overseas.
  3. GAP insurance. If you buy a new car and then have to sell it, you’ll be selling it for a lot less than you still owe for it. GAP insurance covers that gap between what you still owe and what you can get for it.

If you’re a working adult, be sure to get the insurance you need. Consider getting other insurance if you can afford it, to protect you from unexpected disaster in the future. Whatever you do, make sure you have the basic covered.

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