Do people like insurance? Do people desire insurance? Or do people need insurance? People need insurance. Insurance is a necessity for many people. Every person’s needs are different and there are enough types to insurance to meet everybody’s individual needs. However, there are five types of insurance that most people must have:
The main purpose of life insurance is to provide for lost income for the deceased. Imagine if a breadwinner with a wife and two small children passes away, how does the family cope with the loss. Is it realistic to expect the grieving widow during the grieving process to look for a job? Who will pay for the mortgage, for the groceries, the children’s education, and so on? The proper death benefit from a life insurance can help the family to sustain themselves during and after the grieving process.
Disability can be a detriment to your financial planning. Herein you need to protect your standard of living if a disability were to occur. Disability insurance partially replaces lost income due to illness or injury. Statistics show that on average one out of every three workers will encounter a disability lasting at minimum three months during their career.
Every American needs health insurance. But while politicians debate the issue, millions of Americans die or go into unending debt due to lack of health insurance coverage. It is critical to have health insurance through work or if affordable, an independent policy. It is far cheaper to pay health insurance premiums than to pay for doctor visits or hospital care. Health insurance affords you the opportunity to have regular preventative medical care. Furthermore, health insurance coverage protects your assets in case of huge medical bills.
Protect your most valuable asset, your home by having homeowners insurance. In case of maintenance issues and catastrophic losses, homeowners insurance protects your homes or compensates you for any loss, thus giving you peace of mind about your most expensive investment.
All states require auto insurance, however, many drivers are underinsured unknowingly. Auto insurance is an important type of insurance coverage because it protects you when you hit another car, someone, or something and when someone hits you in your car.