With all of the different types of recommended insurance policies out there, it can be daunting when figuring out what you need and what you really don’t. Exact insurance needs will vary by individual, but the following are some basic types of insurance that just should everyone should have:
Even if you are healthy as a horse and have never had to take a sick day in your life, everyone should have a basic health insurance plan that can help lower medical costs in the event of an accident or sudden illness. If your employer doesn’t offer health insurance, consider exploring the available options for independent health insurance policies. You never know what the future could bring, and even though health insurance is another bill to think about, you have to consider how much it would cost to pay out-of-pocket for healthcare.
Compared to health insurance, dental insurance plans are available for a fairly low price, and you can usually receive decent coverage for under $30 a month. Just like when it comes to your health, you’ll never know when something might happen that requires extensive and costly dental work. Additionally, preventative care is necessary for optimal dental health, and there’s a good chance you’ll spend more in the long run if you don’t have coverage.
Auto insurance if you drive
It’s imperative to have car insurance if you drive, even if you have a basic policy that covers liability only. Without auto insurance, you could get sued if you ever cause a car accident and cause bodily harm to another person, or damage someone else’s car. This could mean losing assets (such as your home), or having a judgment against you, which can result in bad credit and wage garnishment. Even if you don’t have a car, it’s important to know you’re covered if you plan on getting behind the wheel. For example, if you’re renting a car, you’ll need to purchase their car insurance if you don’t have your own. If you’re borrowing or driving someone else’s car, you’ll need to make sure their insurance will protect you in the event of an accident.
Insurance for your home
If you’re a renter, you should have renters insurance, and if you’re a homeowner, you should have homeowners insurance. In many cases, people won’t have the choice to opt for these types of policies; lenders will often require that borrowers take out a homeowner’s insurance policy when they are financing their home, and many landlords require that their tenants purchase a renter’s insurance policy. But in other situations—for example, you own your home free and clear or your landlord didn’t require you to purchase a policy—consider the serious, potential consequences of not having one. In fact, if something terrible happens and you’re uninsured, it could be devastating. You could possibly lose everything you own or even be without a home, and this isn’t a chance you’ll want to take.
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Nothing above is meant to provide financial, tax, or legal advice. You should meet with appropriate professionals for such services.