Personal insurance plans protect you from heavy financial loss due to things like accidents and illness. These plans cover risks, but no insurance plan covers all risks. Each person has different insurance needs, so you have to take some time out to figure out what kinds of personal insurance you require. Here are some ways to figure it out.
Do You Drive a Vehicle of Any Sort?
Most places in the country require you to have car insurance if you want to legally drive. The problem is many people see auto insurance as something they need just to meet the requirement. Instead, you should consider what value car insurance can bring to you and your life.
State minimum insurance can put you behind the wheel. Unfortunately, the minimum is rarely enough liability to pay for someone's medical bills and wages if they're injured in an accident with you.
Do You Live in a House or an Apartment?
Unlike car insurance, home ownership doesn't come with a requirement that you have insurance. Home insurance requirements are typically set by lenders or others who have a financial stake in your property.
If you're done paying the mortgage or outright own the property, you'll have to consider if you want to make insurance payments or not. In all cases, having at least some liability coverage can help. Besides, it just makes sense to insure what's arguably the most valuable investment most people make.
If you rent, you can pick up renters insurance to protect your personal belongings. Usually, renters insurance is relatively inexpensive. It can help pay for stolen or damaged items, sometimes even if the damage occurs away from the property. You can also find coop and condo insurance.
Do You Understand that Life and LivingComes with Risks?
The bottom line is that living your life comes with risks of all types. Personal insurance is about mitigating those risks as much as possible from a financial standpoint. You don't need personal insurance for every possible thing out there, but you should evaluate where the most risk can appear in your life.
To that end, you should consider insurance plans that can cover you, your health, and what happens after you're no longer here. Those plans can include:
- Life insurance
- Health insurance
- Disability insurance
- Long-term care insurance
Many personal insurance types have some overlap with each other. You may not need a bunch of disparate coverage options if you can find plans that cover all the points you want to be covered. For example, some health insurance policies include coverage for disability and long-term care.
You don't have to try to figure all this out on your own. Speak to licensed personal insurance agents for some help. You will need their help to figure out what forms of personal insurance coverage will work best for your budget, needs, and lifestyle.