What kinds of insurance are worth their price tags? Should you invest in them all? You can purchase an insurance policy for just about anything, can’t you?
Mariah Carey insured her vocal cords, after all.
But how do you decide? Well, fortunately for you, we’ve curated a list of the most effective insurance policies available for the average American today. When you’re ready to discover which are the biggest winners, so you can feel safe, read on.
1. What About Life Insurance?
Do others in your life depend on your income, such as your children, parents, or spouse? Do you have big financial obligations such as a mortgage or college loans? If you answered yes to both of these questions, life insurance could make the difference between the success or failure of your loved ones should something happen to you.
This type of insurance policy is to give your dependents a lump sum payment in the case of your death. Basic insurance policies will give your family as little or as much as you decide. The policies offer coverage of varying amounts.
Most policy owners first decide how many years of income your household will need covered to become self-sufficient and successful. Then work backward. But what if you want other types of insurance too?
Well, many insurance companies offer plans with multiple coverages. An example is Living Promise Mutual of Omaha, which provides coverage for both retirement planning and final expenses that you might leave behind after passing. To cover all your insurance needs at a lower cost, find a policy that covers multiple events for a discounted rate.
2. What About Renter’s Insurance?
When you rent, your landlord covers the cost of repairs to your building, but not your belongings. That’s where renter’s insurance comes in. It covers the cost of buying new stuff should your stuff be damaged by a flood, fire, or theft.
You’ll need to keep a detailed list of your items. If you can, save the sales receipts, especially on big-ticket items, like TVs and PCs. Also, take photos of the items themselves, including identifying numbers.
3. What About Homeowner’s Insurance?
If you own a home, what should you do about natural disasters, thefts, and other freak occurrences? Well, that’s what homeowner’s insurance is all about. Should something unexpected occur, it covers your losses.
Yep, that covers the items inside your house, should someone steal your bike or your stereo. It also covers the cost of a new home should your old one be torn apart by a hurricane.
4. What About an Umbrella Policy?
But what if your homeowner’s or auto insurance doesn’t provide all the protection you want? That’s where a personal liability policy comes in. It covers the remaining out-of-pocket expenses.
5. What About Long-Term Disability Insurance?
Finally, what about unexpected circumstances that might leave you unable to work? If you’re temporarily or permanently disabled, you might not be able to provide for your family or yourself. That’s why some folks invest in long-term disability insurance.
Short-term disability insurance also exists, though it’s less common than long-term. Some employers offer it at a low cost, so it’s worth checking to see what’s available.
Other Kinds of Insurance
Now that you know the most popular kinds of insurance, remember to consider other types, such as personal articles, pet, and long-term care insurance. To decide which types of insurance are right for you, write a list of your most vulnerable areas. These are the things that once taken away would leave you and your loved ones in dire straits.
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