If you were in an auto accident, could you pay the costs of medical expenses, damages, lost wages, and other expenses out of pocket? In 2020, these costs ranged on average from $4,700 to $1,750,000. The possibility of ending up in a financial pit is high if you don’t have insurance.
Luckily there are a few types of personal insurance coverage that can protect you from situations like this.
When it comes to personal insurance coverage, there are many different kinds of policies and coverage. This can make figuring out what the best personal insurance types for you are.
Let’s take a look at the types of personal insurance that you need today.
Health Insurance
Over 60% of Americans get their health insurance coverage through an employer or in the marketplace. Unfortunately, about 9.2% of the population does not have any coverage.
Adequate health insurance coverage can make it easier to visit your doctor for an annual check-up and in case of illness or injury. Plus, it can prevent crippling debt if you were to be in an accident or develop a serious disease.
Make sure to check with your employer to participate in their healthcare plan. If this is not an option, you may be able to apply through the Affordable Care Act. If you have a low income, you may be eligible for Medicaid.
Life Insurance
While it’s unpleasant to think about, life insurance can help protect your loved ones financially if you pass away. This is critical if they depend on your income.
In general, most people need a policy of 10 times their yearly income. This can help cover your family’s living expenses as well as your funeral expenses.
Whole life and term life are the most common types of insurance plans. A private insurance agent can help you choose the best insurance policy for your needs.
Auto Insurance
Most states require drivers to carry certain types and amounts of auto insurance. The remaining states hold drivers financially responsible in the event of them causing damage or injuries. If you drive, you should make sure you are at least meeting your state’s minimum requirements.
Auto insurance can help cover the cost of any damage or injuries that are due to an accident. However, it can also help protect you against theft, vandalism, and natural disasters.
If you want the best car insurance, make sure to shop around for a policy that meets your needs and budget.
Homeowner’s or Renter’s Insurance
If you own your home, homeowner’s insurance may be required. It helps protect one of the largest investments in your life. This can be from any number of perils from fires to vandalism.
If your home is in an area prone to certain disasters, you may be required to carry coordinated coverage. For example, flood or earthquake insurance is common in many places in the nation.
If you are a renter, you should still protect your belongings and yourself from liability. Renter’s insurance can cover the cost of your belongings if they are lost, damaged, or destroyed in fires, burglaries, tornadoes, or another covered event. If someone is injured at your property, it can also protect you from being sued.
Protect Yourself with These Types of Personal Insurance
Insurance is a valuable way to protect your and your loved one’s finances. By understanding the most important types of personal insurance that you should carry, you can set yourself up for better financial peace of mind.
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