In this day and age, we have insurance plans for nearly everything, from luxury handbags to cell phones, wedding insurance, and even coverage like bed-bug insurance. While today's marketplace gives us so many options to feel safe, you might be wondering what type of insurance coverage you should purchase. While we cannot account for every general situation, this article will share six types of smart and practical insurance plans you should consider purchasing.
6 Types of Insurance
As mentioned above, although you have many insurance options available, some of the more common insurance plans fall into the following types:
Homeowner's or Renter's Insurance
Life Insurance is always a smart and practical choice. If you have a spouse and children, life insurance helps cover living costs and funeral expenses in the event of your passing. Deciding to purchase whole or term life insurance depends mainly on your financial plan. While whole life insurance is typically more costly than term life insurance, it does have a cash value. In contrast, term life insurance does not have cash value and only provides coverage for a specified term. However, it is typically less costly than whole life insurance.
Umbrella insurance is a type of insurance coverage that provides additional protection on top of your existing life insurance. If you have significant wealth and savings akin to an accredited investor, it's a smart idea to acquire an Umbrella policy. Much like supplemental medical policies, Umbrella policies help cover additional costs on top of homeowners and automobile insurance.
Homeowners' or Renter's Insurance
Homeowners' Insurance allows you to protect your home investment. It's a good idea to look into additional coverage apart from standard homeowner's insurance. For example, fire, flood, and natural disaster insurance will help you cover the costs of rebuilding or repair in case of an unforeseen event or natural disaster. Notably, in the state of Florida, it's advisable to acquire windstorm andflood insurance to protect your assets against natural disasters. Additional coverage like flood and windstorm insurance is especially crucial if you live along the coastline.
If you do not own a home, renter's insurance is a smart plan. While it does not cover the cost of the dwelling, renter's insurance will typically cover valued belongings housed within the rental property.
Having health insurance is fundamentally unquestionable. After all, without your health and well-being, everything else is moot. When it comes to health insurance, most individuals and families are covered typically by their employer's health plans. If you have a bit of wiggle room in your budget, supplemental health Insurance like Aflac is also a smart option that may help cover additional costs on top of your primary health coverage or reimburse you for covered medical expenses.
Another smart safety net for healthcare expenses is a Health Savings Account which is a tax-advantageous savings plan designed specifically for healthcare expenses.
Much like health insurance automobile insurance is a must. Typically, you are not able to operate a registered vehicle without currentauto insurance. It’s a good idea to select the most comprehensive plan you can afford as doing so will help you avoid hefty out of pocket costs. Keep in mind, if you own a new or relatively new vehicle, full coverage is preferred, especially if the plan covers the value of the vehicle in case of a total loss.
If you are a pet owner, we all know that pets become a part of the family. However, medical insurance does not cover family pets. As a result, it's a smart move to purchase pet insurance as routine veterinarian visits, vaccinations, preventative care, and emergency visits can become quite costly. Purchasing pet insurance is a smart move for individuals or families who consider pet care essential to their home life. After all, why pay thousands of dollars per year if you can subsidize the cost of pet visits with insurance.
What Type of Insurance is Right for You?
Overall, while these types of Insurance plans are excellent options, be sure to examine your particular situation and determine valuable, "insurance worthy" scenarios. If you live in a desert climate you will not need flood insurance. At the same time, you may live in Florida wherein wind insurance for homeowners is a must to protect your home. Using another scenario, you may not own a home but you may travel one hundred days out of the year, making travel insurance necessary. The key is to make smart insurance decisions to protect your life, home, and the way you live. Every individual or family will have unique insurance needs. Whether it’s home, life, business, or pet insurancechoosing the right type of insurance plan is essential to protect yourself and your future.