Insurance shopping is one of the responsibilities that none of us look forward to, but it is one of the most important things you can do as it can change your loved ones’ lives. We never know what the day brings us, so it’s important to plan ahead.
Make sure you do everything you can to provide a safe financial safety net for you and your family. You can start by getting insurance! There are five very important types of insurance: health, homeowners, renters, auto, and identity theft.
Shop around for insurance to fit your budget
The best piece of advice to keep in mind as you fit insurance into your budget is to shop around. Your monthly premium—the amount you pay for the insurance each month—will be different from your next-door neighbor’s and you can find affordable insurance rates.
Here are 5 important insurances you need to protect you and your loved ones.
Health insurance
Health insurance costs can vary greatly from person to person. Some of the factors used when calculating individual health insurance premiums include age, location, number of people insured, and even tobacco use.
This type of insurance provides coverage when you visit the doctor, have an emergency, or need to see a specialist. You will likely have a copay and a deductible, which are figures based on your provider and your provider’s policy terms.
A copay is what you are responsible for at the time of your visit. It refers to an amount of money that you pay out-of-pocket for each visit. For example, when you visit your doctor, you could end up paying a $20 copay.
You’ll also have a deductible. Let’s say you have a $7,000 deductible. This means that over the course of a year, you will pay up to $7,000 out-of-pocket towards your healthcare expenses. You must reach the value of your deductible before insurance starts kicking in and paying for expenses after that point.
A deductible in the thousands might seem like an overwhelming amount, but think of it like this. If you’re seriously injured and spend time in the hospital, you’ll likely get billed for ten times that amount. Deductibles might be high, but they’re nowhere near as expensive as medical costs.
In fact, the number one cause of personal bankruptcy is medical bills. Better to be safe and covered than sorry. Shop around to get the best insurance possible. Work with an agent or browse online and get multiple quotes from many different providers.
Check to see if your employer offers healthcare, and if so, take advantage of the programs. You will likely have to pay a premium, but it’s usually cheaper than getting coverage on your own. The Affordable Care Act is another viable option, so check to see your eligibility and the requirements here.
Auto insurance
It’s common to think long and hard about choosing a shiny new car that you so badly want. Just remember that you’ll need to devote some of that energy toward choosing the right auto insurance. Just like health insurance, car insurance protects you in the aftermath of an accident involving your vehicle.
There are different types of auto insurance, including comprehensive, collision, and liability. Each of these coverage options requires a monthly premium and a deductible. Your monthly premium for comprehensive coverage will be much greater than liability-only coverage. Factors such as age, credit score, and driving record all impact your monthly payment as well.
If you have ever been curious why auto insurance is required in most states, check out these crazy statistics. Expert tip: when you have a loan on your car, you are required to carry full coverage auto insurance, but if you own your car, you can opt for whichever coverage you’d like.
Renters or home insurance
Insuring a property you own or rent is not only a good idea, but it’s also often required, especially if you own the home and have a mortgage on the property.
This type of coverage is a good idea because if you find yourself in a situation such as a house fire or robbery and lose all of your personal belongings, you’ll have to start over on your own. With coverage, however, the insurance company will pay you as a way of helping you rebuild and recover what you lost.
You can customize your home insurance based on your needs. For example, if you have a lot of expensive valuables in your home like technology, jewelry, or musical instruments, you can add additional coverage for these items. If you want to just protect your dwelling or an antique car, then you can do that, too.
Life insurance
Life insurance might be something you deem unnecessary, but is it? It honestly depends on your situation. The upside to getting life insurance when you’re younger is that your premium will likely be cheaper than when you’re older.
Life insurance is important for people who are battling a terminal illness or have dependents. You should also check out short- and long-term disability insurance, which is an alternative yet equally as great type of insurance.
One of the most common types of life insurance is term life insurance. This means that you will pay a fixed amount over the course of your term, and if you die within the term, your beneficiaries receive the payout.
Another popular option is whole life insurance. You’ll pay a monthly premium for the duration of your life. It’s best to get it while you’re young and healthy so that your premium rate is lower.
Identity theft
There are many ways that someone can steal your information as the world continues on its digital path. We purchase multiple items on a weekly basis from online retailers, and we sign up for all sorts of different banking apps that require our Social Security numbers.
Protect yourself at all costs with identity theft insurance. RoarMoney will help you deactivate cards right away if they are stolen. Identity theft insurance coverage is one of the best ways to ensure your personal information is protected in our digital world today.
Finding the best insurances for you!
One of the best ways to cover your bases is by having cash reserves. You never know when the day will turn sour. Make sure that you take the appropriate precautions so that you can always care for yourself and your family. Insurance is there to help you, not make life worse!
Co-pays or out-of-pocket expenses stacking up? Borrow a cash float with Instacash! Get up to $250 instantly added to your bank account with 0% APR. Download the MoneyLion app to explore our suite of financial tools.
