Life throws many unexpected things at all of us. While we usually can’t stop these things from occurring, we can opt to give our lives a bit of protection. Insurance is meant to give us some measure of protection, at least financially, should a disaster happen.
Let’s start with the types of insurance that just about everyone needs, regardless of where you live or what your personal condition is:
1.Health and Disability Insurance:
Quality health insurance will make sure you’re able to see a doctor when you’re sick, get a routine checkup, purchase prescription medication, or seek medical care in the case of an unexpected illness or an accident. Disability insurance is designed to provide supplemental income in the case that you’re hurt and unable to work for a short or long period of time.Your health is your most important asset—putting aside all of the controversies around it, health insurance makes sure you can preserve it.
2.Homeowner’s or Renter’s Insurance:
Whether you own your own home or you’re renting from a landlord, you should have some kind of property insurance that protects your belongings in the event of a fire, burglary, weather event, or some other man-made or natural disaster.If you own your own home, homeowner’s insurance serves the purpose, and protects your property and investment against even more threats. It’s also important to note that homeowner’s or renter’s insurance may not cover water or flooding damage.
If you don’t drive or don’t own a vehicle, you can skip this one, but if you do, you should absolutely have at least the minimum required auto insurance coverage.
Like health insurance, most people get life insurance through their employer. It’s designed to make the lives of your spouse, children, or parents a little easier in the case of your death. It can at least provide a short-term revenue stream for your loved ones so they have time to get back on their feet after your passing. Most employer-based life insurance policies pay out a percentage of your annual salary in case of your death, and allow you to buy more at a decent rate if you think your family will need it.
Those four types of insurance are the common types that almost everyone should have. If you’re a working adult out on your own, you should probably have at least considered all of these, if not for your personal protection, but for the protection of people around you or close to you.