wiseGEEK: What Types of Insurance Coverage do I Need?

In today’s world, having sufficient insurance coverage is a key component of being financially secure. While there are many different types of insurance on the market today, there are a few basic kinds of coverage that every adult should have. Here are some examples of the kinds of insurance policies you should acquire and maintain if at all possible.

Over the years, auto insurance has moved from the realm of being optional to coverage that many jurisdictions require as a matter of course. Proof of insurance is required to register a new vehicle or obtain a tag for a current vehicle. While the exact requirements for the car insurance will vary from one location to another, just about every jurisdiction with mandatory insurance requirements invokes stiff penalties for a failure to comply. In other words, driving without this type of insurance coverage could cost you a great deal in fines even if you never get into an accident.

Another example of insurance coverage that is almost mandatory today is health insurance. Employers often provide employees with the opportunity to enroll in group health insurance plans. The employer may pay the entire monthly premium or share the cost with the employee. In the latter situation, the employee’s share is often managed with a payroll deduction, making it simple for the employee to maintain continual coverage.

For people who are employed by companies that do not offer health insurance benefits or individuals who work for themselves, there is also the option of obtaining a personal health policy. As with group plans, it is impossible to insure an individual or an entire family unit. Insurance coverage of this type is becoming more common as more people choose to set up their own businesses and

employers choose to discontinue offering group insurance policies to their full time employees.

Life insurance is also considered an essential today. Whether whole life or term life coverage, the idea is to provide financial resources for loved ones in the event that the policyholder should suddenly die. Fortunately, there are plenty of options with life insurance policies, making it possible to obtain insurance quotes that just about everyone can afford.

Insurance coverage for the home is also an excellent idea. Homeowner’s insurance is a good option for people who own property. People who choose to rent or lease can purchase tenant ’s insurance that offers protection in the event of theft or damage to personal property covered in the terms of the policy. Premiums for insurance of this type will vary depending on the location and the amount of coverage required.

Other types of insurance coverage are available and may be ideal for certain situations. Burial insurance has become an excellent way to prepare for end of life expenses related to funeral and burial expenses. Travel insurance adds an extra element of security for people who journey outside the coverage area of health and other types of coverage. As time goes on, different kinds of insurance continue to emerge as needed.

Putting together an effective insurance coverage plan requires assessing all current needs as well as considering future needs. Once you have an idea of what you need, balance that with what you can reasonably afford today. Many insurance providers offer clients the option to increase their coverage at a later date, if they choose to do so. This makes it possible for you to obtain additional coverage when and as you can afford to do so.

Source: m.wisegeek.net

Category: Insurance

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