Ten Types of Insurance Plans You Need Strongly
We live in a world which is flooded with unforeseen events, problems and critical situations in life. Insurance is one such blessing which is an ultimate lifesaver in difficult times. Unfortunately, many people continue to overlook this concept because they think it is nothing but a waste of time and money. Insurance is a financial compensation which is paid against damage or loss. You will be surprised to know, net worth of the insurance sector is $558.2 billion globally which is a staggering figure. This means this sector continues to flourish every single day. In this article we will guide you through ten types of insurance plans you must have. If you choose to overlook the idea, you will get yourself in trouble in the long run. Therefore it is important for everyone to move with the times. Some of the mandatory insurance plans are:
1. Health insurance
This is the most important insurance plan which should be on the top of the list as soon as you start earning. Not only do you want to visit the top-notch doctor in town but would equally like to be given proper treatment in case you fall extremely ill. If you aren’t provided with a health insurance plan by your employer, there are many companies out there which offer affordable insurance plans. However if you are from Los Angeles and your insurance company is denying a legitimate claim you can find Los Angeles bad faith attorney on google to get in touch with a veteran professional. Some countries have governmental plans which are easy to afford.
2. Auto Insurance
This insurance plan is mandatory in most of the American states. Every day it is common for Americans to witness an accident on the streets. However, an auto insurance plan differs from person to person and depends on several factors such as age, type of vehicle and driving history. Therefore you must conduct in-depth research before settling for an insurance plan as such. The ethos behind buying an auto insurance plan is to protect the vehicle from possible physical damage in case of an accident. Having an auto insurance policy in your pocket can save a lot of money in the long run in case you run into trouble.
2. Renter’s insurance
Are you looking for a house on rent as a tenant? Don’t overlook renter’s insurance for you will always need it. Renters insurance covers a lot of factors, but some might not be covered. Though the landlord’s insurance plan might pay for natural disasters and human loss, you should have your plans in the backyard. The best thing about a renters insurance plan is it covers the cost of the belongings which might have been taken in case of theft or unexpected occurrences. Renter’s insurance plan is not difficult and easy to pay. Keep in mind; this insurance plan will protect you in times you would have never imagined could come in your life.
4. Life Insurance
If something happens to you God forbid, your family will be sufficed against the emotional loss with monetary benefits. Life insurance is purchased for your family members who depend on you. Most single people run away from this plan for they don’t have a lot of dependents on them. As a parent or a family member who is providing for the family, you surely wouldn’t want to leave your family with no help in case something happens to you, right? Life insurance plan is a very easy policy which can be paid in monthly and yearly instalments. You will be shocked to know that a large part of America is still uninsured. Therefore it is better to register for this program before a sudden calamity befalls on your life leaving your family members in stress.
5. Liability Insurance
This insurance plan is often misunderstood, which is why most people refrain from purchasing it. Liability insurance covers the insured party in case a lawsuit has been filed during certain events. Let us give you a simple example to explain. If a friend of yours comes to your place for a party and falls off the top floor and sues you for negligence, liability insurance will cover your bills. Liability insurance is also crucial if you want to have your own business. It can protect your building and assets from the damage costs which result because of your employees causing any trouble.
6. Dental Insurance
You will be surprised to know a lot of health insurance plans don’t cover dental insurance. Americans spend more than $980 billion on health care every year out of which a large portion is spent on dental treatments. Dental insurance is very crucial, especially when you have to get your teeth filled, drilled or repaired. Dentists are one of the most expensive doctors in the world. A lot of people get in trouble at the time of visiting their doctors when they need to get dental treatments. If you have a dental insurance plan at hand, you will have no stress of getting treated at the time of a dental issue.
7. Homeowners Insurance
This insurance plan is very curial in case you are willing to give your house on rent. Homeowners insurance can provide coverage for the protection of the valuable assets in the house in case they’re stolen. If you have tenants in the house, they could sue you for the loss as a result of an unexpected robbery. However, homeowner’s insurance varies with the size of the house and location. Your homeowner’s insurance plan will become more expensive if you want your garage to be covered too. Furthermore you need to make sure if your homeowner’s insurance plan covers loss against natural disasters.
8. Property Insurance
This kind of insurance plan falls within the category of homeowners and renter’s insurance. The intriguing part about this insurance plan is it covers damage against natural disasters, unlike other insurance plans. Keep in mind there are two types of property insurance plans; open perils and named perils. The first one covers all the losses which are not excluded in the policy such as earthquakes, terrorism etc. The second type of insurance plan covers exact losses such as fire, floods, hurricanes etc. Property insurance is not very common in many parts of the world, but most of the large scale organizations and top-notch buildings must adhere to this insurance plan.
9. Disability insurance
This insurance plan covers all the expenses if you suddenly fall ill and are unable to work. People usually register for a short term disability insurance plan which extends to 6 months and provides a monthly stipend to cover the missed wages and daily expenses. Don’t register for this plan if you are healthy and fit. However if you are skeptical about your impending health issues, you must register for it with a suitable insurance firm. Disability insurance is crucial for every working person to get rid of any stress which would arise as a result of not being able to attend office.
10. Natural Disaster Insurance
If you don’t get natural disasters insurance from renters or homeowners insurance, you can get an entire plan for this issue. However, in areas which are highly flexible to getting affected with natural disasters, this insurance plan is a must over there. However you don’t necessarily need to buy every policy for natural disaster since you don’t know when one might struck you. However if you are aware of the problems of an area you live in, you must consider buying multiple natural disaster insurance plans. Natural disasters can strike any place of the earth. Therefore it is crucial to have a safety net to fall back on.
Is insurance expensive?
A common myth which continues to chase insurance all the time is it is expensive. The truth is insurance plans differ from person to person. If you’re in buying insurance for the first time, there’s nothing much you will have to invest. Most of the modern insurance plans are economical, and one can easily pay in instalments. The insurance industry is close to a trillion dollars which means the world is rampantly investing in it. Hadn’t it been for insurance, many companies would have got wiped out from this world. If you are willing to invest insurance you are good to go. However keep in mind, it will help you tomorrow in difficult times.
There are many more types of insurance plans available in the market. The ones mentioned above are which you must invest in. People who don’t invest in insurance plans are the ones who have a lot to atone for in the long run. However, before settling for an insurance plan, you must draft your needs and wants. Always consult professional advice when investing money in such things. Insurance is a lifesaver when it comes to tough situations in life. Wise people say it is crucial to invest today to have a healthy life later on.
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