Here’s a one-stop look at some important information on five different types of insurance and when it’s important to buy them. Let’s make sure you’re all set when entering the world of “adulting.”
Health Insurance
This type of insurance covers a large portion of medical expenses in events like surgery, doctor visits, long-term treatment, and sudden accidents. Health insurance prevents you from accumulating loads of debt as a result of medical care. It’s usually offered through long-term employment. According to the self-help book #Adulting101, a plan with a low premium and high deductible is ideal for healthy and young individuals. A premium is an amount you pay per month for insurance. A deductible is the amount you pay before insurance kicks in.
Car/Auto Insurance
This type of insurance covers either the other party or the other party and yourself in the event there’s a car accident. You cannot legally drive without this insurance. Liability insurance, the cheese pizza of insurance, makes sure that the other party is covered in an accident that’s your fault. This includes car repair, medical, legal, and possible funeral expenses. With a full coverage policy, both you and the other party are covered.
Renters & Homeowners Insurance
This type of insurance covers the costs of damage to your home and assists in repairing/replacing items in the event of an accident (fire, tree fall, flood, etc…). If you have family members who are home while you are still working, give them clear rules about what they can and cannot do during your work hours. Different policies can be combined, like auto and renters, therefore giving you a discount.
Life Insurance
This type of insurance financially protects members of your family in the event of your death. There’s are two types of plans. Term life insurance plans are set to cover you over a chosen period of time anywhere from 1 to 30 years. A whole life plan covers you for the entirety of your lifespan and never expires if you keep up with your premium. The self-help book #Adulting101 suggests you seek out this insurance after purchasing a home, having a child, or getting married. This insurance becomes increasingly important as you age.
