You should expect the unexpected in life. Fortunately, insurance can relieve you from the unexpected. While most people know the importance of insurance, only a few know the types of insurance policies they need. Here are a few types of insurance policies and why you might need them.
Health insurance
Who needs it: Everyone
Why need it: Unexpected health care can be costly and result in debt for individuals who can’t afford the out-of-pocket costs.
What it is: Health insurance is an agreement between a policyholder and health insurance that requires the insurer to pay for a portion or all of the medical costs.
Auto insurance
Who needs it: People that own a car
Why need it: Driving an uninsured car is against the law and can be risky because the vehicle and the driver aren’t protected against accidents.
What it is: Auto insurance covers vehicles, motorcycles, and others against damage or bodily injury that could result from an accident.
Life insurance
Who needs it: Those with heir
Why need it: The cost associated with death can cause a setback. A life insurance plan will ease the financial burden for the surviving spouse and dependents.
What it is: After death, a life insurance policy pays your heir an agreed amount to cover the expenses you left.
Homeowners insurance
Who needs it: Homeowners
Why need it: People that want to protect their home in case of damage such as house fire or flood.
What it is: Homeowners insurance protects your property and any associated buildings, such as a porch, garage, and balcony.
You need to ensure you’re covered to protect yourself from the unexpected. So take your time and find the policy that fits your need.