8 Types of Insurance You Need

“Insurance is the only product in the world that both the seller and buyer hope it is never actually used.” Author Unknown

Buying insurance is the best way to manage the risk of losses that could be financially catastrophic to you. There are eight types of insurance you need. Nowadays, there are insurance products for just about everything.

8 Types of Insurance Your Household Needs:

1. Auto Insurance This insurance is inexpensive but will be beneficial for repairs and if you have serious injuries. It will cover long-term care that can quite expensive.  You need to get the right car insurance.

2. Homeowner’s Insurance The shelter is among life’s most essential needs. When your home is damaged, repairs are usually costly and may be rendered uninhabitable. Whether you own or rent your home, you face the risk of suffering property damage and liability losses. Homeowner’s insurance will combine the property and liability coverage into a single policy.

3. Renter’s insurance You should buy renter’s insurance when renting from homeowners. The homeowner is your landlord and likely has insurance for the dwelling and furnishings if provided as part of your lease agreement. However, their coverage does not protect your possessions.

4. Life Insurance Life insurance is protection for families that are fully or partially dependent on your income. If a working parent passes away, their income is lost. Parents or single parents with young children need life insurance protection to help replace that lost income. Your dependents usually mean your spouse, children, and extended family members like aged parents.

5. Disability Insurance That statistic should be cause for concern. Disability insurance replaces a portion of your earnings when you cannot work due to illness or injury. This insurance is a valuable perk if offered by your employer. You must opt-in before becoming disabled to be covered.

6. Long Term Care Insurance Long-term care insurance is a very long-term contract. It provides reimbursements for custodial care costs in a nursing facility, assisted living, or at home. You would usually buy a policy in your 50s and up when you are in good health.

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