Knowing the Types of Insurance Helps Protects Your Money Goals
Insurance is a topic that many people do not like to talk about. Yet, we pay for one of those items, hoping that we will never have to use it. Some people see it as a waste of money, but insurance provides a lot of protection when you need it.
By paying a little each month, you can protect yourself, your properties, and your financial goals. You may not realize how beneficial insurance can be for protecting your finances. Continue reading this article to find out how insurance can protect you.
So Many Options
There are many different types of insurance options available to you. It may be hard to understand the differences and know which one is right for you. It is essential that you have some understanding of the different insurance options to make the best choices for you and your family.
There are some insurance options you should not be without. You may think right now that you will never need a certain type of insurance, but you never know. You cannot predict the future, but you can help protect yourself, your family, and your finances from what may happen. It can feel uncomfortable to think about insurance because it is often complicated. However, there are some main types of insurance of which you should be aware.
Car Insurance
One of the top reasons why this is one of the most important types of insurance is because you are legally required to have it. Just about every state requires you to have some amount of car insurance. Aside from the legal requirement, it is a smart idea to have car insurance. There are so many variables that can impact you and your vehicle on the road and even when it is parked. You cannot control all of those variables, and you should protect yourself.
No matter how old your car is or how much you do not care about it, you should have some type of car insurance. It may seem like an excessive amount to pay each month, but it is better than paying out of pocket to repair your car or someone else's.
There are several options from which you can choose when deciding on car insurance:
Liability
Liability is a great option when there is an accident that is your fault. Liability insurance covers the cost that is caused during an action. This can include injury to others and damage to property. Many states legally require you to have at least the minimum coverage here.
Collision
Collision coverage provides insurance coverage to provide repairs or a replacement to your vehicle if it is damaged in an accident.
Comprehensive
Comprehensive coverage protects you by covering the costs associated with the loss of your vehicle as a result of vandalism, theft, or some other act outside of your control.
Health Insurance
Health insurance is another one of the critical types of insurance you should consider. Medical debt contributes to a large number of bankruptcies. It is unexpected and accumulates quickly. If you do not have medical insurance, you are putting yourself in a dangerous situation. Even if you are healthy and have no medical concerns, that can all change quickly.
There are many options when it comes to health insurance coverage. For example, you can opt for a high deductible insurance plan which means you pay less per month but have to pay a higher amount when it comes to upfront costs when you need to see a medical provider or have some procedure.
Homeowners Insurance
Houses are expensive. They are expensive to buy and expensive to replace. Homeowners insurance protects you and your home from major damage. When you purchase a home and have a mortgage on your house, the lender requires you to have homeowners insurance. Homeowners insurance protects the lender's investment as well as yours. However, if your house is paid for, you are no longer required to have homeowners insurance. Many people choose to drop it at this point. That is not the best move to make.
When considering homeowners insurance, it is important to get extended dwelling coverage. This gives you additional layers of coverage that your homeowner's insurance may not provide. This additional coverage replaces or rebuilds your property even when the cost is above what your policy covers. There is a cap to how far over the coverage your policy will go. You want to make sure that you fully understand everything that your homeowner's insurance covers. If you do not, you could end up paying more money out of pocket than you expect. Most often, flood and earthquake insurance are not provided by your plan.
Life Insurance
Life insurance is a protection for those you care about and leave behind when you pass away. This includes spouses, children, parents, and other loved ones. Any of those who may suffer a financial burden as a result of your passing could benefit from life insurance. However, some do not consider it because they may think about the fact that their loved ones will no longer have their earnings after they pass away. While people do not like to think about their own death, it is important to think about what happens after you pass. At a minimum, you can get a policy that will pay off your debts and cover your burial expenses. This way, no one has to worry about how that will get paid.
Disability Insurance
Just like none of us want to think about dying, we also do not want to think about being unable to work. Unfortunately, it happens more often than we think. There could come a time when you are not able to work for a significant portion of time because you are sick or injured. If you do not have long term or short term disability, there is a high chance you will not get paid for the time you miss work.
If you are the primary wage earner or the only wage earner in your family, you should consider disability insurance. It is something many overlook and end up regretting not having it when they need it. It tends to be something you do not think about until it is too late. If you do not have this insurance, you could go for quite some time without receiving any income which could put your finances in jeopardy.
Short term disability is intended to cover you if you are out of work for three to six months due to sickness or injury. Long term disability is for a longer period of time. If you have a solid savings plan with an emergency fund, then you may be able to skip short term disability.
Choosing the Right One
There are many insurance options with a lot of details. It is important that you find the right one for you, which may differ from what is right for someone else. You want to read the policies thoroughly and make sure you understand them. If you do not understand, be sure to ask questions. Talk to a professional that is licensed to get a clear understanding of what is covered, your cost, and how much it will pay if it is ever needed.
You also want to understand what you need to qualify for insurance coverage. You want to look at multiple options and compare them. Do not only look at the monthly premium. You also want to look at the amount of coverage you receive and the provisions. You also want to make sure you understand how to cancel a policy that you have. You do not want to pay for coverage that you no longer need.
Need More Help?
Insurance coverage can be tricky. You want to make sure you are paying a fair rate for the best coverage you can find. You also want to ensure that you are covered properly. You do not want to find yourself in a position where you need the coverage but realize you do not have an adequate amount.
The Goalry Mall is here for you to help you navigate the insurance maze. We have a large number of resources available to you at the Mall. You can find videos, articles, blogs, and more personalized help if you need it. Before you pay for the wrong type of coverage, visit us at the Goalry Mall to see how we can help you.
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Conclusion
Do not discount your insurance needs. While you may find it frustrating to pay for something that you do not feel you need right now, it can be incredibly important. The hope is that you never need to use the insurance. The reality is that you will need to use a large percentage of it at some point. You want to have the appropriate amount of coverage when you do need it. If you do not have insurance, you will have to pay out of pocket. This is going to wreak havoc on your financial plans. Even if you have money saved for emergencies, you may not have enough. Do not take a chance with your finances; get the insurance you need today.