How many different types of insurance are there and how many should you have? Make sure you keep reading below to learn the answers to these questions.
In 2018, nearly 30 million Americans did not have health insurance.
However, health insurance is critical insurance to have as an adult. It helps pay for medical bills and ensures you have coverage when you visit a doctor or have surgery.
But there are also other kinds of insurance that are must-haves. They are essential to making sure you are covered and aren’t paying outrageous prices.
Here are five different types of insurance that are critical to have as an adult.
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Health Insurance
Health insurance is critical to have as an adult. Without health insurance, you could potentially have to pay $100,000s in medical bills if you’re uninsured.
When you choose health insurance, you can choose a high deductible so you pay less for your coverage.
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Homeowners Insurance
Homeowner insurance protects your home in case it is damaged, even to the point the home is completely lost. With the right homeowner insurance, your home can be protected from fires and earthquakes.
Homeowners insurance also protects you if someone gets hurt in your home.
Whatever policy you choose, it’s important to see what is covered in case anything is lost in your home. Unlike businesses, who can use captive insurance to insure themselves, you need to work with a reputable insurance agent to find appropriate coverage.
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Term Life Insurance
Life insurance helps protect your loved ones in case the worst happens.
Term life insurance protects your family in case you pass away unexpectedly. It gives your family a financial cushion in your absence.
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Auto Insurance
Auto insurance is a must, not just because it would be against the law not to have it. You need auto insurance to protect yourself and your vehicle.
Finding auto coverage can offer liability coverage as well as collision coverage. In other words, liability coverage covers the cost of someone who is injured in an accident while collision coverage covers the cost of any damage to your car.
You can also choose comprehensive coverage, which protects your car from vandalism or natural disasters.
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Identity Theft Protection Insurance
When someone steals your identity, it can ruin everything for you. It means you have to change bank account information and other stuff.
You also have to ensure that nothing was bought under your name, especially major purchases like a home.
Identity theft protection insurance allows a professional to clean up the mess for you. They ensure you are reimbursed for any damages and they repair your credit reports.
Why It’s Important to Consider Different Types of Insurance
These different types of insurance are must-haves as an adult. They can protect from financial disaster. They can also help you plan for the future in case the worst happens to your home or another life situation.
While you don’t have to pick the most expensive insurance policy, you should consider what each policy says in detail so you carefully protected.
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Interesting related article: “What does insurance deductible mean?”
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