some of the most important types of insurance coverages you need to know about. Like Health, Life, Car, Homeowners and Renters Insurance.

Four Types of Insurance You Need to Know About

Life is full of surprises, so it’s not uncommon for something to happen when you left expect it. For this reason, you need to safeguard your health, property and ultimately end-of-life preparation. Here are some of the most important types of insurance coverages you need to know about.

Health

Health insurance is no longer optional. In fact, if you don’t have some type of coverage, you might be fined at tax time. Health insurance policies can be tailored to suit your overall health and personal preferences. Someone who is in excellent health without pre-existing medical conditions might opt for basic coverage. This usually covers annual exams and preventative testing. Someone who has chronic medical conditions, like hypertension, diabetes or heart disease, typically has a more comprehensive plan that covers more frequent office visits, medical testing and prescriptions. If offered under the same umbrella, it might include vision and dental into this plan as well.

Life

Life insurance has two purposes; to cover end-of-life expenses and provide your loved ones with financial security. There are two types of policies you can acquire, term or whole. Term insurance is exactly what it sounds like. You pay a specific amount over the course of a fixed term. This can range between 15 to 20 years. Whole life insurance involves paying a certain amount of money each month until you pass away. It’s important to note that unlike term insurance, whole insurance has value, which can be cashed out. There is also a viatical type of coverage, which means the purchaser may only have a short life expectancy. There are a variety of guides you can review online, which breaks down the logistics of how the seller receives more money than with other kinds of coverage.

Car

It should go without saying that you need car insurance to drive legally. However, not all policies are the same, so you need to know the differences prior to making a final decision. Collision will cover you if you’re involved in an accident. Comprehensive offers a variety of perks, which include paying for repairs and other forms of damage. For instance, if your car is vandalized, this plan will pay for the repairs with little to no out-of-pocket costs. Your lifestyle should influence the type of car you buy, which will in turn influence the cost of your insurance. For example, the best car for an independent woman is likely not also the best car for a parent of multiple children. 

Homeowners

Anyone who owns a home needs this type of insurance. It offers protection from natural disasters, theft and also appliance malfunction. You also need to show proof of homeowners prior to settlement as well. Most mortgage companies will not approve your home loan without it. The monthly payment will vary depending on where you live, the type of property, it’s overall condition and how much protection you need. You can also add on liability, which means you won’t have to worry about being sued if someone is injured on your property.

Renters

If you choose to rent instead of own, you should also have rental insurance. This will cover you in case of theft, natural disaster and even water damage from another apartment. Most management companies have a set amount of coverage you need to have prior to moving in.