You must get tons of calls from insurance agents convincing you to buy different types of insurance policies. In a situation like this, it is easy to get confused. So, what is the solution? For many people, it is not getting an insurance policy at all, but that’s not the right approach. Why?
Because everyone knows what the cost of living is in the US. Not everyone can afford it, and most probably you can’t either. The right solution is consuming the complete information about all the different types of insurance policies you need, before making any decision.
Let’s start with the most important and common policy;
Life insurance guarantees your beneficiary a lump sum amount after you die. Some of these policies also cover funeral and cremation expenses, such as final expense insurance. There are many different sub-categories of life insurance, such as term insurance, permanent insurance, pre-need insurance, and guaranteed insurance.
Qualification is different for each sub-category. For example, qualification of term and whole life insurance is a bit difficult, whereas relatively easy for pre-need and guaranteed issued insurance. Similarly, the coverage plans, amount of premiums, and death benefits vary from policy to policy.
To own a life insurance policy is to live a hassle-free life. The cost of living in the US is very hard to afford, but do you know how much does a normal funeral cost? More than $5000 at least. You don’t want to add this burden on your loved ones, who are already very tight financially.
Auto insurance is for the recovery or maintenance of your vehicle. Be it your car, bike, or truck, it will cover all kind of vehicles, but the premiums depend upon the price, and weight of your vehicle.
Do the premiums change when you change your car? Yes, when you change your car, your premiums change respectively. But why do you need it?
If you get into an accident or damage your car, even a little bit, the insurance company will handle all of your maintenance expense. Moreover, if you get into an accident, and it is decided that you will be paying for the other car damages as well, your insurance company will bear those expenses as well.
Health insurance bears all of your medical expenses. Some health insurances have a limit and others don’t. It depends on the type of plan you have opted. There are two types of health insurance, one given by the government, which everyone gets, and the other offered by private companies.
These are called public and private health insurance. Most people prefer public health insurance because it is more affordable and easier to qualify. Almost everyone can qualify for public health insurance in the US, even if you are earning or not.
Private health insurance on the other hand is relatively expensive and not easy to qualify. You need to be healthy and at a young age to qualify for suitable health insurance. The advantage of private health insurance over public health insurance is that most private clinics or hospitals do not accept public health insurance, whereas private health insurance is applicable in almost every medical centre.
Property insurance covers a wide range of property-related damages. It also covers the cost of robbery occurred at that property. You can sign up for property insurance either as an owner or renter. The policies for both are different in several aspects.
Qualification for property insurance is a bit different than other types of insurances. The amount of insurance offered depends upon the value of the property.
Property insurance only covers you under a few circumstances, like fire, smoke, heavy wind, snowfall, and lightning. On the other hand, if your property gets hit by a flood, storm, tsunami, standing water, sweeping groundwater, and sewer back up.
There are three types of property coverages. Number one is replacement cost, which replaces the damaged or stolen pieces with the cash value equal to market value.
The second type of property coverage is the actual cash value. In this coverage, the cost of replacement is equal to the cost of buying. For example, if you bought something for $10 years ago, and now it costs $20. You will still receive $10 as mark up price.
The third type of property coverage is extended replacement cost. In this type of property coverage, you will get more than the actual price of the broken or lost product. This is usually 20% above the actual price. What you need is to talk to your broker to find the best coverages and prices possible.
In some policies, no coverage is given for mysterious disappearance, or accidental breakage, while some policies cover you for all kinds of breakage of lost items.
Disability insurance replaces half or full income of a person if he /she becomes disable or prevented from working due to any illness or disease. People usually don’t understand the importance of this insurance and most of them ignore it, but stats have proven that 1 out every 5 American citizens need this insurance at some point in their life.
It is important to plan. Like Funeral Insurance, this policy is an act of proactiveness. It shows how much you care for yourself and your loved ones. Life is uncertain, and you are most likely to get into an accident or affected by an illness or disease. If you have this insurance in hand, then there is nothing to worry about for yourself or your loved ones.
Insurance is important, either you are thinking of taking it for yourself, or your loved ones. These are several types of insurance policies you need. Now that you have all the information you need, we are sure you will be able to make the right decision.