Most people are familiar with some of the different insurance policy types. Are you a car owner? Then you know you need to carry coverage to be on the road. Ever borrow money to buy a home? Your lender likely required you to get homeowner’s insurance to protect this big purchase.
While these may seem like enough, the truth is there are other types of insurance that you should consider to adequately protect yourself and your future income. We’ll go over nine of them, but first, let’s talk about why insurance is so important.
Why is it important to have insurance coverage?
Think of insurance as protection for your wallet. Having the right types of insurance can potentially save you a ton of money in the event of an emergency, unplanned life occurrence, or a medical need. Car insurance can pay for the costs of a car wreck, like repairs and medical bills.
A homeowner’s policy can help you rebuild your home after a devastating fire. Health insurance can pay for expensive emergency room bills after an injury or illness.
In exchange for paying money (premiums) to an insurance company, you get coverage. It means you can protect yourself without having to impact your long-term financial plans. Not having enough insurance policy types can derail your financial goals, and you definitely don’t want that.
Before you start signing up for any additional insurance coverage and adding new premium payments to your budget, you need to make sure that the insurance policy types make sense for your life situation.
You also want to make sure that the additional monthly costs are justifiable. You don’t want to be making monthly payments for insurance coverage if you don’t necessarily need it.
Check out these nine types of insurance you may need — and that you might not have considered otherwise.