Did you know that in 2020, the US insurance industry consisted of 5,929 insurance providers? Of those companies, more than 40% (2,476) were property/casualty insurers. The rest sold other forms of coverage, including health and life plans.
With so many types of insurance policies to choose from, you may be at a loss, wondering which ones you need.
Well, that’s what our guide below summarizes for you. So, read on to discover the most crucial insurance plans you need to get ASAP.
Auto Insurance
If you live in the US and want to drive, you most likely need to carry proof of financial responsibility. It’s mandatory, and in 48 states, it takes the form of auto insurance.
New Hampshire is one of the two states that don’t require car insurance. However, to drive here, you must show financial ability to pay for the damages you might cause in an accident. If you don’t, the state will suspend your driving privileges.
Virginia is the other state where you can choose not to buy car insurance. Still, you must first pay the $500 Uninsured Motor Vehicle Fee. That doesn’t provide any coverage, though; it only lets you drive without auto insurance in VA.
Despite not requiring car insurance, NH and VA still recommend purchasing it. After all, a crash that causes property damage alone can already cost an average of $4,600 (per vehicle). That goes up to a whopping $98,400 for an incident that leads to disabling injuries.
Without auto insurance, you’ll end up paying for all those out-of-pocket. That’s why you should never drive without it.
Health Insurance
While a health plan is no longer mandatory in the US, some states, like California, still require it. A good enough reason is that the US is home to the world’s most expensive healthcare system.
Although health insurance is still pricey, it helps reduce healthcare costs. For example, it can help pay for check-ups, emergency room visits, and hospitalizations. It can also cover part of the costs of diagnostic tests and, in some cases, even medical equipment.
Life Insurance
According to folks at www.trkingim.com, about 10,000 people turn 65 in the US every day.
If you or a loved one has reached that golden age, it’s a good time to think about funeral costs. However, it’s even better if you start earlier, as you never know what might happen to you tomorrow or the next month.
Fortunately, funeral costs are some of the expenses covered by life insurance. You can opt for final expense insurance, a policy with a small death benefit of between $2,000 and $50,000. You can also go for a whole life policy if you want a plan with a more sizeable payout and a cash value component.
Homeowners’ Insurance
Homeowner’s insurance is usually only mandatory for homes still under a mortgage. However, it’s still best to get one, even if you live in one of the 38% of owner-occupied, mortgage-free homes in the US. After all, such a policy covers your home’s structure and its contents.
With homeowners’ insurance, you can rely on coverage for accidental damages. For instance, it can help pay for the repairs or losses caused by a fire or lightning incident.
Invest in These Types of Insurance Today
There you have it, the most critical types of insurance policies you need in your life today. Even if they’re not mandatory, they can provide financial protection against losses. That should be enough reason to purchase them ASAP.
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