Family Finance Lifestyle

4 Types of Insurance You Can’t Afford To Do Without

While most insurance coverage is optional to some extent, other coverages are required by law in the United States and other parts of the world. Like it or not, we work hard for the things we acquire over the course of our lives. In order to protect those investments, as well as our financial security, we need good coverage.

If you’re like most people, you’ve probably found yourself looking at your policies from time to time and wondering if the monthly payments are worth the peace of mind that comes with protection. It can be tempting to cut coverages when we’ve never filed a claim or have a change of circumstances. Especially in the middle of a global pandemic where finances and the overall economy can be uncertain, it can be difficult to make choices around coverage. Before you cancel policies, it’s important to know what you could be losing. For four types of insurance, you cannot afford to go without, read on.

1. Auto Insurance

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If you own a vehicle, you need comprehensive car insurance for protection on the road. While you could consider changing your policy to collision insurance only in some states, fully comprehensive coverage offers the most protection for your car’s value and serves as a layer of liability protection. For people who make payments on their vehicles, comprehensive coverage is a must if you want to stay on good terms with lenders and, in many places, remain within the scope of the law. If you aren’t sure which type of car insurance you have, give your insurance carrier a call. There are differences between collision coverage and overall liability insurance. To avoid putting yourself at high risk should an accident happen and bodily injury is caused, you need to know what coverage you have. Even if it means opting for a plan with a high deductible, having full coverage will give you peace of mind. When calling your insurance company, ask about additional coverages available, too. Some carriers offer bundle packages that could extend to your home or other properties at reduced rates.

2. Health Insurance

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In the United States, health insurance coverage is not a guarantee. Instead, citizens are asked to join health insurance plans through a health insurance marketplace when they don’t automatically get health insurance services through their employers. Because of this, choosing a health fund can be a little complicated. If you aren’t sure about how to get the right health insurance plan for you, a great place to start is to call a licensed health insurance sales agent and ask about open enrollment and what options will be available to you.

While there are different ways to get health insurance around the world, the best way to prevent financial risk in the case of an emergency is to have some level of coverage. When doing your research on health insurance policies available to you, be sure to ask about monthly premiums, group plans, and optional coverage that will work best for your situation.

3. Homeowner’s Insurance

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If you’re like most people, your home is likely your biggest investment. For this reason, you’ll want to be sure your home is covered. For people who owe mortgages, homeowners insurance is rarely optional. If you own your home outright, you do have the option of going without home insurance, but it’s not advised. In the event of a fire, flood, tornado, other natural disasters, or vandalism, your home could be destroyed, and you won’t have tools to replace it if you go without coverage. If your current homeowner’s insurance payments are too steep, call a licensed insurance agent to ask about options to cover your home, at least minimally.

4. Life Insurance

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If you’re a parent or have a spouse, life insurance could make a huge difference to your loved ones if something goes wrong, and you pass away sooner than expected. Life insurance coverage can give you peace of mind that your family will be okay financially in the event of your death. The good news is that there are many types of life insurance coverages out there and finding the right fit can be easy with a simple call to an agent.

At the end of the day, your decision to cut, keep, or upgrade your insurance policies is a personal one. In doing your research and going over your policy coverages and options, you’ll put yourself in the best spot to make an informed decision. Understanding what you might be giving up when it comes to financial security and lower risk will be important before making any big changes.