Having an insurance policy is a smart and responsible decision, whether it be find life insurance online, health, home, or auto insurance. Without a policy, unforeseen circumstances can bring devastating expenses and major hassles. Here are four types of essential insurance policies and some of the basics of each one.
Health or medical insurance covers the full or partial cost of prescription drugs, surgical procedures, doctor and hospital visits, and sometimes dental and vision expenses. When choosing a health insurance policy, consider factors such as deductibles, out-of-network services, and co-pays. Co-pays are set fees that policy holders must pay for prescription drugs and doctor visits. Examples of health insurance plans are health maintenance organizations, point-of-service, preferred provider organizations, and fee for service.
Life insurance is useful for ensuring that your loved ones can pay for funeral expenses and other obligations left behind in the event of your passing. This type of insurance is also essential for providing family who were dependent on your income to pay bills. When taking out a life insurance policy, consider the monthly cost of the mortgage, credit cards, child care, and any outstanding loans that would be left behind. The beneficiaries are the people who will receive the life insurance policy and can go to a single individual or be divided among several people or entities. A life insurance policy may include a death benefit, or money that is paid to beneficiaries upon your passing.
A house is an exciting purchase that comes with risks, many of which can be mitigated by taking out a homeowners insurance policy. Home insurance covers incidents such as fires, burglaries, and visitors being injured while on your property. Certain things can increase your home insurance premiums, such as some dog breeds and a swimming pool in the backyard. Beware that problems due to poor home maintenance may not be covered under your home insurance policy. Dwelling coverage is the term referring to coverage of fires, hurricanes, and other natural disasters to your home. Personal property coverage is the protection of personal belongings. Personal property insurance can also be carried over to travels, such as the instance of your hotel room being burglarized.
Auto insurance protects property damage to your car, liability in case you are at fault for damage to another car, and medical costs in the event of being injured in a car accident. Basic auto insurance is required by most states in the U.S., although local laws may vary. Auto insurance companies generally allow you to customize what coverage you need and will price accordingly. Policies are usually renewed every six months or every year. This insurance will cover other family members who are driving your car with permission, but will not cover you if you are driving your car for business purposes, such as food delivery or working for ride-shares such as Uber or Lyft. Types of car insurance to look for include collision, comprehensive, and glass coverage.
Insurance brings peace of mind when it comes to paying for certain unforeseen circumstances, so look into these types of coverage.