Insurance offers peace of mind against the unexpected. You can find a policy to cover almost anything, but some are more important than others. It all depends on your needs.
As you map out your future, these four types of insurance should be firmly on your radar.

Auto Insurance

Auto insurance is crucial if you drive. Not only is it required in most states, but paying for damaged caused by car accidents is expensive. According to data from 2019, a car accident could cost you more than $12,000, even without any injuries; it can cost more than $1.7 million if a crash is fatal. These costs come from medical expenses, vehicle damage, wage and productivity losses, and more.
Basic personal auto insurance is mandated by most states and provides you with some financial protection in case of an accident. But is it enough? What are the options? Learn how car insurance works and what types of coverage are available.


Auto insurance is a contract between you and the insurance company that protects you against financial loss in the event of an accident or theft. In exchange for your paying a premium, the insurance company agrees to pay your losses as outlined in your policy.
Auto insurance provides coverage for:

Property – such as damage to or theft of your car
Liability – your legal responsibility to others for bodily injury or property damage
Medical – the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses


Basic personal auto insurance is mandated by most countries, and laws vary. Auto insurance coverage are priced individually to let you customize coverage amounts to suit your exact needs and budget.
Policies are generally issued for six-month or one-year timeframes and are renewable. The insurance company sends a notice when it’s time to renew the policy and pay your premium.


Your auto policy will cover you and other family members on your policy, whether driving your car or someone else’s car (with their permission). Your policy also provides coverage if someone who is not on your policy is driving your car with your consent.
Your personal auto policy only covers personal driving, whether you’re commuting to work, running errands or taking a trip. It will not provide coverage if you use your car for commercial purposes—for instance, if you deliver food take outs.
Personal auto insurance will also not provide coverage if you use your car to provide transportation to others through a ride-sharing service such as Uber or Lyft. Some auto insurers, however, are now offering supplemental insurance products (at additional cost) that extend coverage for vehicle owners providing ride-sharing services.


Auto insurance requirements vary from state to state. If you’re financing a car, your lender may also have its own requirements. Nearly every state requires car owners to carry:

Bodily injury liability – which covers costs associated with injuries or death that you or another driver causes while driving your car?

Property damage liability – which reimburses others for damage that you or another driver operating your car causes to another vehicle or other property, such as a fence, building or utility pole?

In addition, many states require that you carry:


Medical payments or personal injury protection (PIP), which provides reimbursement for medical expenses for injuries to you or your passengers. It will also cover lost wages and other related expenses.

Uninsured motorist coverage reimburses you when an accident is caused by a driver who does not have auto insurance or in the case of a hit-and-run. You can also purchase under insured motorist coverage, which will cover costs when another driver lacks adequate coverage to pay the costs of a serious accident.
Even if PIP and uninsured motorist coverage are optional in your state, consider adding them to your policy for greater financial protection.


While most basic, legally mandated auto insurance covers the damage your car causes, it does not cover damage to your own car. To cover your own car, you should consider this optional coverage:

Collision reimburses you for damage to your car that occurs as a result of a collision with another vehicle or other object e.g., an obstacle like a tree or a big pothole when you’re at fault. While collision coverage will not reimburse you for mechanical failure or normal wear-and-tear on your car, it will cover damage from potholes or from rolling your car.

Comprehensive provides coverage against theft and damage caused by an incident other than a collision, such as fire, flood, vandalism, hail, falling rocks or trees and other hazards.

Glass Coverage provides coverage from windshield damage, which is common. Some auto policies include no-deductible glass coverage, which also includes side windows, rear windows and glass sunroofs.


Collision and comprehensive only cover the market value of your car, not what you paid for it—and new cars depreciate quickly. If your car is totaled or stolen, there may be a “gap” between what you owe on the vehicle and your insurance coverage. To cover this, you may want to look into purchasing gap insurance to pay the difference. Note that for leased vehicles, gap coverage is usually rolled into your lease payments.
2. Home Insurance
For many people, a home is their greatest asset. Home insurance protects you by giving you a financial safety net when damage occurs. If you have a mortgage, your lender probably requires a policy, but if you don’t buy your own, your lender can buy it for you and send you the bill. It may come at a higher cost and with less coverage.
Home insurance is a good idea, even if you’ve paid off your mortgage, because it shields you against expenses for property damage. It also protects you against liability for injuries and property damage to guests caused by you, your family, or your pets. It can also cover you if your home is uninhabitable after a covered claim, and it can pay to repair or rebuild detached structures, like your fence or shed, damaged by a covered claim.
What does homeowners insurance cost?
The costs of homeowners insurance depend on a number of factors, including the coverages you select, features of your home and the value of your personal belongings. There may also be extra costs for additional coverage or increased coverage limits. An agent can help you choose the coverages that fit your needs and also help determine if you are eligible for any policy discounts.
What does homeowners insurance cover?
Homeowners insurance typically helps cover:
Your dwelling
Other structures on your property
Personal property
Liability for injuries or damage to someone else’s property
You may also be able to purchase additional coverage for greater protection. Typical homeowners insurance policies offer coverage for damage caused by fires, lightning strikes, windstorms and hail. But, it’s important to know that not all natural disasters are covered by homeowners insurance. For example, damage caused by earthquakes and floods are not typically covered by homeowners insurance. You may be able to purchase separate insurance policies to help protect your home and belongings against those types of risks.

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USAA* Overall A++ (Superior) 882/1,000
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Health insurance

Health insurance is a type of insurance that helps cover the cost of an insured person’s medical and surgical expenses.
Insurers use the term “provider” to describe a clinic, hospital, doctor, laboratory, healthcare practitioner, or pharmacy that provides treatment for an individual’s condition.
The “insured” is the owner of the health insurance policy or the person with the health insurance coverage.

Types of health insurance

There are two main types of health insurance: private and public, or government. There are also a few other, more specific types. The following sections will look at each of these in more detail.
Private health insurance
Public, or government, health insurance
Managed care plans
Indemnity, or Fee-for-Service, plans
Health Maintenance Organization plans
Preferred Provider Organization plans
Point-of-Service plans

Why is the type of insurance plan important?

The type of plan a person has dictates how they will approach getting the treatment they need and how much money they will need to pay on the day they receive it.
In 2003, the U.S. Congress introduced a new option: the Health Savings Account (HSA). It is a combination of an HMO plan, a PPO plan, an indemnity plan, and a savings account with tax benefits. However, in plan year 2020, a policyholder must pair this type with an existing health plan that has a deductible of over $1,400 for individuals or $2,800 for families.


HSAs can top up coverage, extending existing plans to cover a wider range of treatments. If an employer pays for an HSA on behalf of their employees, the payments are tax-free. An individual can build up funds in the HSA while they are healthy and save for instances of poor health later in life.
However, people with chronic conditions, such as diabetes, might not be able to save a large amount in their HSA, as they regularly have to pay high medical costs for the management of their health concern.

4. Life Insurance
Many experts say that life insurance should be a central part of your financial plan. But how crucial is it really? It depends on you.
If you’re married with a family when you die, what can life insurance do? It can replace lost income, help pay debts, or pay for your children’s college education. If you’re single, it could pay for burial costs and pay off any debts you leave behind.
The cost depends mostly on your age and health. The younger and healthier you are, the lower the cost is likely to be. You may need to complete a medical exam, but some companies offer no-exam life policies, which may be more costly.
If you’re unsure whether a life insurance policy would be useful for you, Caplan suggests asking these questions to think about your needs:


Because families depend on cash for day-to-day survival, there is a real need for protection from financial disaster if the source of cash is removed. Life insurance is one way to provide security if part or all of the family’s income is cut off because of death. It can also provide funds to replace the services that a member of the family provides — child care, for example.
Protection and savings?

The major purpose of life insurance is protection — the instant estate to meet survivor needs. Some policies include a savings feature, but there are many other ways to save money and make investments. When buying life insurance, your primary concern should be providing adequate protection; the possible savings feature is a secondary consideration.

Even when protection needs have been met, it is a good practice to consider other forms of saving and investment plans for a family. Whether to save or invest through life insurance or other saving or investment media is a family choice, based on needs, preferences, and ability to manage finances. It is a saving/investment decision, not an insurance decision.
You may get a better return on your money through other saving or investment vehicles. In addition, a variety of saving and investment opportunities are available that do not require paying any commission, or require a commission that is lower than that for saving through life insurance.
Earnings on the saving or investment element of life insurance are tax-deferred; but there are a variety of other saving/investment media that also provide deferral of taxes on earnings. However, earnings in a life insurance policy that are part of the proceeds paid to a beneficiary after the death of the insured are not subject to income tax at all.

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Am Somistar, i am a Professional Web developer, a certified Graphics Designer and a passionate Blogger, Am a very good believer of creativity having so much interest in making the world a global village. I love to share Entertainment News, Music and everything all round technology.

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