Many of us are hesitant about taking out insurance policies, because you’re essentially paying for something that you may never need. However, in many cases taking out insurance is worthwhile - even if it’s just for peace of mind. Without it, you or other people could have to fork out huge amounts of money if disaster strikes.
You can insure yourself against pretty much anything. However, some insurance policies are likely to be more beneficial than others. This post lists five of the insurance policies that almost every American can benefit from taking out.
Health insurance
Health insurance is the best way to cover expensive medical bills. Some treatments can cost thousands. With the right health insurance policy, you can get cover for the entire treatment - or at least most of it. The likes of this medical insurance comparison guide can help you to compare rates. When applying for policies, make sure that all essential treatments are covered and avoid a high deductible. Separate insurance policies are often required to cover dental treatment and eye treatment.
Auto insurance
Technically, this is something that not every American needs, as not everyone drives. However, if you do have a driver’s licence and use it in any capacity, you will need to take out some form of auto insurance (the minimum being liability coverage). Auto insurance helps to pay compensation to anyone you may get in an accident with. You can expand your cover in order to pay for third-party damage or theft of your own vehicle. Extras like breakdown cover are also useful to have.
Home insurance
Home insurance is worth having if you own or rent a property. It can help pay for repairs following disasters such as fires, storms, floods or burglary. You can also get coverage for your contents - which means you will be compensated if your possessions are stolen or damaged in a disaster. Home insurance is often bundled with auto insurance, however you may prefer to take out a separate home insurance policy if you want to protect yourself against specific risks (for example, some home insurance policies may not cover flood damage in high-risk flood zones, in which case you may need to apply for specialist local flood insurance)..
Life insurance
Life insurance can provide your loved ones with a lump sum when you die. This lump sum could go towards probate and funeral costs. Taking out life insurance is recommended if you don’t have any valuable assets to pass down to loved ones. Just be wary of the fact that life insurance terms rarely last more than 10 years and rates can get more expensive the older you get.
Travel insurance
If you’re travelling abroad in the future, it could be important to take out travel insurance. This can cover you for medical expenses abroad if you get sick or injured and need urgent treatment. Travel insurance could also cover you against trip cancellation or lost baggage. You can take out cover per trip, or pay for annual travel insurance, which can cover you for multiple trips taken within a year.