5 Types Of Insurance And Why You Need Them

It is no lie that you cannot prevent unexpected life events from happening. However, you can protect yourself and what belongs to you from these events by getting insurance. The types of insurance out there are many, and a financial expert will tell you that you need all of them. Well, that might be impossible, especially if you are struggling with finances. However, you need to have these 5 types of insurance at least. Note – We do not carry all of these insurance types at Insurance Advisors Of St. Louis.

1. Life Insurance

Have you ever thought about what would happen to your family if you died? Your wife, parents, and children may face financial hardships, especially if you are the breadwinner. Why allow this to happen when you can financially protect these people by getting life insurance?

In case you die while your life insurance policy is active, your loved ones will get financial support from your insurance company. For instance, they will be given a tax-free sum of money called the death benefit. This sum of money is what will help your family members continue paying for food, housing, and other bills.

The amount of life insurance that you should buy depends on your financial situation. Your age and health should also determine it. For example, if you are young and healthy, you can purchase cheap premiums.

2. Auto Insurance

Do you know that the average cost of a car accident ranges between $10,000 and $1.5 million? These high costs are associated with vehicle damages, medical expenses, and productivity losses resulting from the accidents. To avoid incurring these costs, get auto insurance if you own a car.

If you purchase auto insurance, you will avoid incurring costs associated with car accidents since your insurance company will cover them. You will also avoid wasting time when accidents happen since the policy will help you with vehicle repairs and replacements. All this will help you have peace of mind even if you are responsible for the accident.

But which insurance policy should you choose? Consider the type of car you drive and the number of miles you drive in a year before getting auto insurance. You will also need to look at your driving history and the other people who will drive your car.

3. Health Insurance

Health insurance is a type of contract between an insurance company and a policyholder. It requires the insurance company to pay a portion or all the medical costs of the policyholder. The policyholder pays monthly premiums in return.

Health insurance is very important, especially if you have pre-existing medical conditions. It will help you evade the stress that comes with huge medical bills. For instance, when you have this kind of insurance, you will not have to make cash payments for your hospitalization or any medication given to you when hospitalized.

When you decide to buy it, think about the option that will suit you. For instance, you can choose the option whereby you pay your hospital bills and get a reimbursement from your insurance company. On the flip side, you can let your insurance company directly settle the bills with the hospital you go to.

4. Pet Insurance

You need pet insurance if you are a pet owner. This type of insurance is mostly for cats and dogs. It can cover for a part or all the treatment offered to your sick pet, depending on the type of pet insurance that you choose.

Pet insurance will help you evade paying a lump sum of money when your pet gets sick. However, you need to be careful when choosing a pet insurance plan. Checking out different insurers and understanding pet insurance plans will help you make a good choice.

5. Homeowners Insurance

Homeowners’ insurance, including high-value home insurance, will protect your home against perils such as theft and damage. In some cases, it will cover injuries that occur in your home and personal property damage. However, you need to purchase additional insurance if your home is likely to get damaged by natural disasters like earthquakes and floods.

You need homeowners insurance because a home is a valuable asset. Anyway, there are valuable things inside that home. Your mortgage lender might also require you to have this type of insurance.

Insurance will protect you against unexpected life events. However, deciding the type of insurance to buy is not easy. Even with this confusion, ensure that you purchase a home, life, pet, auto, and health insurance policy as these are 5 types of insurance that you need.