When all is going well, we might think insurance is just a waste of money but, just when you think you have everything under control, life decides to throw you a curveball. Whether your little one was hit in the mouth at baseball practice or your newly licensed teen had a fender bender, having the right kind of insurance can go a long way toward keeping you and your family protected. Below are five of the most important types of coverage you should have.
Auto Insurance
Driving without auto insurance is not only illegal, but it can also ruin you financially. And while some states only require you to carry liability coverage, it’s important to have coverage that protects every member of your family. Look for plans that offer discounts for bundling insurance needs and ones that offer additional coverage for teen drivers, if you have children. The key is finding a plan that you can afford and provides you with adequate coverage. See: How Much Car Insurance Do You Really Need?
Health Insurance
It’s easy to take our health granted, however, you never know when someone is going to catch the flu, get injured playing sports or in the worst-case scenario, be diagnosed with a chronic medical condition. Since the cost of health insurance keeps rising, having catastrophic coverage is always better than being uninsured. If your employer offers a contribution to healthcare coverage, take advantage of it. You should also comparison shop before deciding on your health insurance plan.
Accident and sickness insurance is also another viable option, especially if traditional health insurance coverage is too expensive. It also works as a supplement to your regular health insurance if that plan doesn’t cover everything you might need.
Homeowners Insurance
If you own a home, then you need to have homeowner’s insurance. Homeowners insurance covers certain repairs or replacement caused by accident, but generally not routine maintenance or replacement of household appliances (although you can get separate coverage for this type of thing).
Most mortgage companies also require proof of homeowners insurance, and may actually set up an escrow account so that a portion of your mortgage payment is set aside to ensure that your homeowner’s insurance is paid. Since there are several types of coverage, including personal property and liability, it’s a good idea to speak with an insurance representative to determine which is best for you. See: Cutting Your Home Insurance Bill: Three Secrets That Can Save You A Bundle
Dental Insurance
Your teeth need to last a lifetime, so not having appropriate dental coverage can be costly. Most dental plans offer discounts or full coverage on annual exams and cleanings; however, you may have to pay some out of pocket expenses for more extensive dental restorations.
Life Insurance
No one wants to think about passing on but unfortunately, it is something we need to plan for. Life insurance gives your family an extra layer of security when that time comes, giving you the peace of mind that they’ll be taken care of in event of your death. Life insurance coverage can vary dramatically, so it’s important to compare policies and speak with a qualified life insurance professional. See Also: How Much Do You Know About Life Insurance?
While paying for insurance coverage can add up, knowing you and your family have adequate is priceless. Take the time to compare plans, shop around and always check with your employer to see what they have to offer as well.
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