10 types of insurance you may need

Insurance provides us with a peace of mind when we are protected from the unexpected. While many of the insurance options that we have listed may not fit into your current financial plan, you may find that they will be necessary in the future. 

Health Insurance

Health insurance is a type of insurance coverage that pays for medical and surgical expenses incurred by the insured. Health insurance can reimburse the insured for expenses incurred from illness or injury, or pay the care provider directly. It is often included in employer benefit packages. Think about those unexpected dentist appointments or when you’re not feeling well and over the counter medicines aren’t doing the trick. Each of us can benefit from health insurance coverage. 

Term Life Insurance

Life insurance that pays a benefit in the event of the death of the insured during a specified term. Term life insurance provides coverage for a specific time period. If you have a term policy and death occurs within the term, your beneficiaries receive the payout. The policy has no other value. 

Whole Life Insurance

A type of permanent life insurance. Like most permanent life insurance policies, whole life offers a savings component, called “cash value,” and life-long protection — as long as premiums are paid, whole life provides a death benefit when you are no longer here. 

Supplemental Insurance

Supplemental insurance is additional coverage that you can use to help with the out-of-pocket expenses that may not be covered by your major medical insurance. This is an extra layer of protection and can serve you well in the case of hefty unexpected medical bills.

Disability Insurance

Disability insurance is a type of insurance that will provide income in the event a worker is unable to perform their work and earn money due to a disability. Many employers offer a percentage of disability insurance coverage when you are out of work (60% of your income as an example); however, consider the additional income that you will need to cover expenses that span beyond what you may receive. 

Long-Term Care Insurance

Coverage that provides nursing-home care, home-health care, personal or adult daycare for individuals above the age of 65 or with a chronic or disabling condition that needs constant supervision. This may be coverage that you plan for in the future or that your parents may need soon. Never underestimate the importance of planning forward. One thing that we all have in common is that we will age. 

Homeowners Insurance

Home insurance, also commonly called homeowner’s insurance, is a type of property insurance that covers a private residence. Often referred to as property insurance. 

Renters Insurance

A renters insurance policy offers you coverage for the loss or destruction of your personal belongings in the event of a covered peril. Expensive collectables and valuables such as jewelry may not be covered under a basic renters policy and may require additional coverage. Be sure to contact your provider for a listing of protections.

Auto Insurance

A policy purchased by vehicle owners to mitigate costs associated with getting into an auto accident. Instead of paying out of pocket for auto accidents. Auto insurance requirements vary from state to state. If someone is financing a car, the lender may stipulate requirements. Nearly every state requires car owners to carry bodily injury liability and property damage liability. A couple of things to consider are if you need uninsured or underinsured motorist coverage (in the case that you frequently have passengers). 

Gap Insurance

Gap insurance covers the “gap” between what your insurance company will pay out and the amount of money you owe on your car loan in the event of a total loss.

Consider each type of insurance option listed above. Evaluate which coverages you have and others that may be beneficial for you and your family. 

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The Finance Bar is a personal finance suite helping women and couples achieve financial wellness through financial therapy, education, and an innovative learning hub on wheels. Creator Marsha Barnes is Certified in Financial Therapy, Financial Social Work, and serves as an Official FICO Brand Ambassador, and was named GOBankingRates’ Best Money Expert in the Net-Worth Category.

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