4 types of insurance policies everybody should have

Most things in life are unpredictable. We all think that bad things can’t and won’t happen to us. Yet, the truth is bad things can happen to each of us, especially when we least expect them. The only and best solution we have for these unexpected situations is to opt for protection.

But how do you financially protect yourself when life throws you curveballs? Insurance is the best protection we have to safeguard us financially if uncertain things happen.

There are various insurance options and policies, and each is meant to protect us financially from different experiences. And, most financial experts will say that you need all of them. Thus, it can be challenging to decide precisely what insurance policies are mandatory to have. Here’s our recommendation:

Health insurance 

Statistically, all of us are just one severe illness away from going bankrupt. Data from a study published by The American Journal of Public health last year, more than two in three cases of the 900 Americans who filed for personal bankruptcy were struggling financially due to a medical problem, which also included bills and income loss due to the condition.

It’s really difficult to know when and why your health may take a hit. Thus, it would be best if you were prepared should a severe disease or medical condition affect your physical or mental wellbeing.

Home insurance

Our homes are often the most significant financial investments we make in our lifetime. A property is a considerable cost but unfortunately, like all things it can get damaged by things we can’t control such as natural disasters, floods, fire, and even theft.

Protecting your home with home insurance equals safeguarding your most valuable asset should something happen and bring damage to it.

Final expense insurance 

There’s nothing more unpredictable than the moment when you will pass away.

No one ever wants to think about the moment when they will pass away. However, regardless of how inconvenient this thought may be, you need to plan for the funeral expenses in order to cover the bills your loved ones will pay for.

Final expense insurance companies offer this type of insurance, also known as burial insurance, to help our loved ones pay for medical bills and funeral bills after our deaths.

Auto insurance 

Last but certainly not least, auto insurance is another mandatory insurance everybody should have. Except for the fact that the law requires auto insurance almost everywhere around the globe, some states in the US don’t require drivers to have it.

Yet, let’s take a look at some statistics. There are nearly six million car accidents across the US each year. And, according to the National Safety Council, approximately 38,800 people died in those accidents. Unfortunately, you are at risk of being involved in a car crash just as much as any other person on this planet. So, better be prepared financially in case you need to take financial responsibility in the event of an accident.

 

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