8 Must-Have Insurance Policies for Everyone

We all know that life can become unexpected sometimes. You can face any accident while going through it. While some accidents can be emotionally devastating, some can cause you financial losses.

In this situation, you should have an insurance policy. It will keep you and your family safe.

But, a lot of you may not know what type of insurance policy they should have. The jargon can be confusing and companies can make it hard for you to understand it.

So, to help you in making an informed decision, we are going to discuss eight important insurance types. You all should have these policies for safety.

1. Auto Insurance

A lot of states demand that you should have auto insurance. So, it is integral to have this policy. In it, there are different types of policies that you should know.

Liability Coverage: If you get in an accident that was your fault, the insurance will cover the injuries and property damage of another person. It also included the legal fees if the other person decided to sue you.

Collision: This policy will cover the damage to your car if you get into an accident that is your fault.
Comprehensive: It also covers the damage to your car that is not related to any wreck. It can include fire, theft, hail damage, flooding, and glass breakage.
Personal Injury Protection (PIP): It covers hospital bills when you get in a car accident that was your mistake.

Medical Payment Coverage: It is the same as PIP. So, if your state doesn’t have PIP, you can go for this policy.

2. Health Insurance

It is another crucial insurance policy everyone should have. People don’t go for this because it is expensive. But, not having it is a bad decision.

Because a lot of people go bankrupt due to medical loans. So, you should have one to avoid extreme conditions.

Usually, your employer can offer you health insurance. But sometimes, the employer doesn’t offer one. Or, you can get unemployed and not have health insurance.

Here, you can go to the federal health insurance marketplace to buy any insurance policy for yourself and your family.

If the price is too high for you, you can go for deductible health plans too. Or, you can have a Health Savings Account. In this way, you can have a tax-free dollar for paying medical costs.

3. Disability Insurance

Different research has shown that a lot of people get disabled in their lives at some point due to any disease or dangerous work.

So, if a disability stops you from going to the office for a long time, you need an insurance policy to cover your basic needs.

Many of the insurance policies cover 40 to 70 percent of your monthly basic income. And to get this insurance, you may have to pay 1 to 3 percent of your annual income.

But, the price of a policy can vary according to your job. If your job is in a safe environment, like sitting at a desk, it will cost you less. But if your job has high risks, it can cost you a lot of insurance money.

4. Home Insurance

Home insurance is a must whether you are a landlord or a renter. This policy is helpful for both of you in various aspects.

The general home insurance policy includes:

Personal Property Damage: If your stuff gets damaged due to any severe accident or gets stolen, this policy will cover it.
Liability Coverage: It includes the medical cost if someone else gets injured or damaged on your property.
Additional Living Expenses Coverage: If your house or rental gets destroyed, this policy will cover the extra costs for you.

Extended Dwelling Coverage: You can rebuild your home through this policy.

You can also add a fire, flood, or earthquake insurance policy if such accidents are common in your area.

5. Umbrella Policy

If you have a net worth of $500,000, having an umbrella policy will be a wise decision. It can add an extra layer of protection to your auto and home insurance policies.

If you ever get in a situation where your wealth is in jeopardy, or another person wants an advantage over you due to your financial state, this policy can help you.

This policy is worth investing in because it is quite affordable. You need to invest $200 to $300 annually to get 1 million coverage.

6. Life Insurance

You need life insurance if your spouse or children rely on you. If you need to provide for them even after you die, you should go for life insurance.

It is of two types; term life insurance and permanent life insurance.

The term life insurance is more affordable than the other type. In it, you can lock the rates of the insurance policy for a specific period. After the period ends, you can renew the policy yearly.

This policy provides money to your family after you die. It is also beneficial if you want to cover any financial obligation.

In permanent life insurance, you not only cover the death benefit but also include a cash value component.

7. Identity Theft Protection

Fraud and theft are increasing day by day. It is becoming a bit common that the thief takes out money from the other person’s ID card or bank.

Though this situation is not your fault, you need to cover the legal issues related to it. You have to check your ID card report, solve bank issues, and go to court.

But if you have this insurance policy, it will provide you with a counselor who can solve your legal issues.

8. Long-Term Care Insurance Policy

If you are above 60, you should go for this insurance policy. Because, in old age, you may need someone to take care of you.

The nursing home’s rooms, assisted living, and in-home care are quite expensive. So, this policy will cover this exceptionally high price and will assist you in having appropriate care.