Insurance Policies Every Working Adult Should Have

By on June 11, 2017

When it comes to buying insurance, there are so many options on the market today that you might not know what is necessary and what is an added level of protection for luxury or peace of mind. It is important to find the right balance between risks, coverage and your budget. When it comes to insurance, there are basically six types of insurance that everyone needs. Speak with your trusted insurance agent to review your existing coverage and fill any gaps with new policies or additional riders to build a strong financial safety net for the future.

6 Policies You Probably Need or Need to Talk to Your Agent About Today

1. Health Insurance

Health insurance is now required of every individual. If it is not provided through your employers or a spouse’s employer, you will need to search for a qualified individual policy with Medicare or the public marketplace. To save money on your premiums, shop for plans with higher copays and deductibles.

2. Auto Insurance

Not only will you want car insurance, nearly every state requires that you have it. For those with an older car, no more than the bare minimum may be required. However, if you have a newer car or a car with a high value, you will also want to insure it against theft.

The main types of car insurance are:

  • Liability: Liability coverage comes in two forms: bodily injury and property damage liability. These cover damage to others and their property. They do not cover the driver or passengers.
    Personal Injury Protection: This type of coverage will cover medical expenses related to driver and passenger injuries.
  • Collision: Get collision insurance if you want your insurance to cover the cost of damage done to your car, whether you are at fault or not.
  • Comprehensive: Collision only covers damage done in an accident. For example, if a tree falls on your car and destroys it, you’ll need comprehensive insurance to get compensation.
  • Uninsured or Underinsured Motorist: This covers you in the event that the person who hits your car does not have enough insurance to cover the damage — or any coverage at all.

3. Homeowners or Renters Insurance

Home insurance covers you against some structural damage (such as fire or water) and the theft or damage of personal items in a dwelling, however, sometimes homeowners or renters insurance alone is not enough to fully protect your home. Ask your insurance agent if you need additional policy for flooding, earthquakes, fires and other disasters that might not be covered under standard plans. And consider an umbrella policy to cover your home during renovations involving on-site contractors or special events which put your a greater risk for injury and liability lawsuits.

4. Life Insurance

No one likes to think about it, but life insurance is an essential component of protecting your family in the event that you pass before your time. There are costs associated with dying, such as burial and mortuary fees. Further, if you are the primary breadwinner, life insurance will help your family to offset the lost income. The latter is the main reason that people get health insurance. The single and childless might not need life insurance, but everyone else should invest in a policy now.

There are two main forms of life insurance: term life and what is known as permanent life. Term is a standard policy with a set death benefit and premium due for a specific length of time (usually to cover a family until children reach a certain age or a home is paid for). Permanent life insurance policies offer an additional savings vehicle for keepiing ahead of inflation or generating investment income.

5. Disability Insurance

Disability insurance is actually quite a bit like life insurance. It reimburses you for income lost during periods of time that you are not able to work. As one third of all Americans are disabled at some point, having this insurance makes good financial sense for the single and married, parents and non-parents. Disability insurance can cover permanent, temporary, partial and total disability. No one knows what tomorrow might bring and disability insurance is relatively cheap — far less than the cost of not having it if something goes wrong.

6. Long Term Care Insurance

Protect your health and your retirement income. LTCI covers what Medicaid, Medicare and savings cannot when it comes to health expenses such as home care, assisted living, hospice care, nursing homes and more. You may not need this policy for many years, however, buying this insurance while you are young and healthy can certainly cut your premiums into something for affordable.

Insurance Can Protect You From Financial Loss

Most people would rather pay a little bit of money every month rather than worry about coming up with a larger amount of money during a time of crisis. And while some individuals may require other, more specific policies (such as malpractice insurance or home office insurance), others will never need flood or earthquake insurance. Speak with your trusted agent to ensure you have each of these basic insurance policies.

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About Scott Ho

FSN insurance and retirement journalist - Planning for your retirement or understanding your insurance needs can be confusing and difficulty. Scott knows these tasks can seem daunting. He offers his experience to make choosing insurance coverage and planning for your golden years a successful endeavor. Connect with Scott at !

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