The Most Common Types of Insurance

Types of Insurance

Most of us are aware of how insurance policies work. Events occur that cannot be stopped (Such as a car accident) and we are financially protected against them. While the compensation given out by insurance companies does not mend injuries or rebuild a house thatís collapsed it can be very beneficial.

Buying the right type of insurance can result in the policy holder having enough money to get them through the situation they find themselves in. However, this all depends on whether they have the right sort of insurance.

There are 3 types of insurance that would be very beneficial to most people during their lives. Weíre going to take a look at these types of insurance now:

Life Insurance

If you have a family or anyone else who is financially dependent on you it might be wise to opt for this type of insurance. An independent insurance agency or a well-known agency is likely to offer many life insurance premiums.

Insurance experts claim that you should take out a life insurance policy that pays out roughly 10 times your annual income. Whether you choose to opt for a term life policy or a whole life policy youíll need an policy that will cover the costs and bills should you die.

Health Insurance

Itís thought that approximately 62% of people who become bankrupt do so because they have health issues. Whatís more surprising is that around 78% of these people already had health insurance. This just shows how important it is that you take out the right level of insurance. If you have a pre-existing condition and you wish to take out health insurance you might have difficulty finding affordable insurance. This is where you should consider seeking the help of a financial advisor. 

Auto Insurance

Auto insurance is absolutely vital as in some states youíre not allowed to take your car on the road without it. Some states donít insist that you have auto insurance but it would still be a mistake not to have any. This is because you might have to pay for repairs to your vehicle in the event of an accident.

You might also find that youíre liable to pay for the damage caused to other vehicles. In addition to this, you might also have to pay the injured partyís medical bills. This is why itís vital that you take out auto insurance, even if you donít think you need any. An insurance policy could help to protect you regardless of what occurred during the accident.

While some insurance policies might seem quite expensive they could help to protect you from going bankrupt. If you want to be protected against ill health, death of a loved one or a car accident opt to take out an insurance policy. Paying a little money each month could means youíre protected should the worse happen. Just make sure you take out a policy that meets all your needs so youíre not left out of pocket should you need to make a claim.