The 4 Types Of Insurance That You Need

To be honest, we can’t stop the unthinkable, though we can do something to make sure that we are covered should something occur. Insurance is a safeguard that can support us in many ways and make sure that we are covered in the event of bad times. However, there are many options to consider and people will tell you that you need them all, but that really is not the case.

You have to consider your current situation to be able to know which insurance type is the right one for you. Children, lifestyle, age, and employment benefits are all things that are considered when you are looking into insurance. However, with all that in mind, there are four types of insurance that most experts recommend, and they are auto, long-term disability, health, and life.


Auto Insurance

According to the National Highway Traffic Safety Administration, in 2018, there were 6.7 million car accidents that occurred in the US.   2019 wasn’t much better with over 38,800 people dying in car crashes alone. As you can see, car crashes really are not a rare occurrence.

It is proven that the number one cause of death for American citizens between five and 24 was due to car accidents. CDC data from 2018 shows that to be true. Now, not all states require you to have auto insurance, however, most do have regulations in place which are in regard to financial responsibility in the event of an accident.

When you drive without auto insurance, there is always the risk of an accident, however, if you do have an accident, fines likely won’t be your biggest financial burden. When you have auto insurance, if an accident occurs and either you, a passenger, or the other driver is injured, auto insurance will cover your expenses. It will also guard you against any litigation that may or may not come from the accident.


Long-term Disability Insurance

Most people think that they will never need disability insurance, but we truly never know what the future holds. Statistics from the Social Security Administration show that one in four workers that enter the workforce will become disabled and unable to work before they even hit the age for retirement. It is highly common that people who have good health insurance and good life insurance don’t actually prepare for a day when they may not be able to work.

Not being able to work for weeks, months, years, or the rest of your life will certainly take a toll, so it is beneficial to consider your options. Health insurance does cover your hospitalization and medical bills though you will still have to find a way to cover your everyday expenses that your paycheck would usually take care of.


Health Insurance

Perhaps one of the most common types of insurance is health insurance. Everyone knows about it, though not a whole lot of people actually realise the great importance of it. It has been statistically proven that yourself and your family are only one severe illness away from complete bankruptcy.

In a survey, which over 900 Americans who had declared bankruptcy between 2013 and 2016 participated in, two out of three bankruptcies were the direct result of medical problems, illness, or both.


Life Insurance

When people pass away, their biggest fear is not always associated with death itself, but more so with the people they will be leaving behind. Luckily, health insurance included the ability to be able to cover your funeral expenses and also provide for the loved ones that you will be leaving behind. This can be exceedingly important should you have a family that is dependent on your salary to pay the bills.

Experts usually recommend a life insurance policy that covers 10 times your yearly income. However, not everyone can afford that, it is understandable. When you begin estimating your life insurance coverage, you should factor in not only your funeral expenses but also your everyday living expenses as well. These expenses can include, outstanding loans, childcare, mortgage payments, future college costs, taxes, and credit card debt.


Most experts in the industry will agree that these are four types of insurance that every single person should have. Insurance may be expensive, but not having it could become even more costly in the long run. Finding the right insurance company means absolutely everything. With Insurerlab, you can enjoy affordable coverage and quotes from the top insurance providers online.



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Written by HealthStatus Crew
Medical Writer & Editor

HealthStatus teams with authors from organizations to share interesting ideas, products and new health information to our readers.

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