4 Smart Insurance Policies Everyone Needs

No matter how many tarot cards or palm readings you go for, nothing prepares and cushions an unexpected tragedy like insurance. Insurance can be an inconvenience when you don’t need it and we can understand why it can come off as a sour topic for many. 

However, when a bad unexpected event happens, it is a cover we are grateful for – it is the umbrella that protects your financial health from breaking down. In this article, we will be looking at four essential insurance policies that will help you create a solid financial plan and prevent you and your family from drowning in debt – should tragedy strike.

1. Health insurance

Whoever said health is wealth must have been a brilliant man, as the only way you can make more money is if you are alive and healthy. With an increase in pollution and many other unknown diseases, we are at risk every day that we step out of our homes. And worse yet, the cost of medical bills are on the high side. 

In fact, according to this publication by the Commonwealth Fund, adults who are either uninsured or underinsured are more exposed to medical debt than those with adequate medical insurance.

2. Life insurance

If you have a family, the benefits of life insurance are immense. No doubt, it is one of the best things you can leave behind. Armed with this type of insurance, you and your family stand to benefit from having your funeral expenses covered. 

There are two basic types of life insurance; the traditional whole life and the term life insurance. Whichever life insurance package you decide to settle for, it is important to consider not just your funeral expenses but also others that are incurred in daily living like credit card debt, child care, mortgage, and outstanding loans.

3. Homeowners insurance

As a homeowner, this is one vital insurance you do not want to sweep under the rug.

When it comes to homeowner insurance, be sure to check what your policy covers and what it doesn’t. Ask questions like “Does it have earthquake coverage?”, “Will homeowners insurance pay for water damage?”. Certainly, many homeowners take insurance policies without fully knowing what it covers. So, don’t be one of them. 

Additionally, as a renter, you are not fully exempted from this as you may want to consider renters insurance. This protects you against property loss in the event of fire, burglary, or flood.

4. Auto insurance

While the law in many states is against car owners driving around uninsured, it is not something you should even be doing in the first place. Auto insurance protects you from the cost incurred when accidents occur. The results from an accident are normally tragic and although driving without insurance might save you some money but it puts everything else at risk.

No doubt, there are numerous insurance policies a person can have, but the above-listed policies are smart money decisions everyone should be making. Shop carefully and talk to an agent if you need help walking through the policies. More so, be sure you understand your coverage and cost before purchasing.