While insurance might not be the most exciting topic to talk about, it’s one that everyone should be aware of.
In order to choose the best coverage options and make sure you’re getting the best possible value, it’s important to know exactly what they are and how they work in real life situations.
That’s where this list of the top five most popular insurance coverage options comes in handy!
With these tips, you can get all the benefits of proper insurance without the confusion of choosing between many different options.
1) Health Insurance
Health insurance is one of the most popular types of coverage and for good reason.
It protects you from medical expenses, but does not cover any other type of losses.
There are a number of different health insurance options to choose from, including HMOs and PPOs.
An HMO plan limits your choice of doctors by requiring that you go through your primary care physician in order to see specialists.
A PPO plan allows you more freedom in choosing which doctors or hospitals you want to use without needing a referral from your primary care physician.
With both HMO and PPO plans, you can enroll as an individual or with family members as well.
One thing to keep in mind with these plans is that if your employer offers its own health insurance plan then it’s important to compare benefits before making a decision on what’s best for you.
2) Auto Insurance
If you are the owner of a car, then it is important to have proper auto insurance coverage.
The most popular types of coverage include: bodily injury liability, property damage liability, uninsured or underinsured motorist bodily injury and collision.
With these five types of coverage, you are adequately protected in the event that an accident occurs and someone is injured or your vehicle is damaged.
There are additional types of coverage such as personal injury protection for medical expenses if an individual is hurt in your vehicle.
For example, if you don’t have sufficient funds to cover the costs from the injuries sustained from an accident where you were at fault, then PIP will pay those bills up to their limits.
Collision coverage will take care of any damages done to your own vehicle while other drivers are responsible for paying damages done to theirs.
You can also purchase personal injury protection which pays out benefits even if the accident was not caused by you and can also provide benefits for funeral costs if necessary.
3) Homeowners/Renters Insurance
Homeowners insurance covers the cost to repair or rebuild your home and other structures if they are damaged by fire, wind, hail, vandalism, theft or natural disasters.
Renters insurance protects you from losing your personal possessions and provides liability coverage in case someone is injured on your property.
4) Life Insurance
Life insurance provides a way to provide financial security for your family when you are no longer around.
There are many different types of life insurance and each one comes with its own set of benefits.
Here is the top five most popular types of life insurance:
*Term Life – Term Life offers coverage for a specific period of time, typically 10, 20 or 30 years.
It’s ideal for people who only need coverage in the short term, such as parents who want to cover their children until they’re 18.
*Whole Life – Whole life policies offer more comprehensive coverage than just term policies.
They also accumulate cash value over time which can be used at any point, not just if you die.
The main drawback of whole life insurance is that it tends to have higher premiums than other options on this list.
If you have enough money saved up and prefer lower monthly payments, then whole life might be the best option for you!
5) Disability Insurance
Disability insurance is designed to replace a portion of your income if you are unable to work because of an accident or illness.
This can be useful if you don’t have savings set aside that would cover your expenses for more than a few months.
Disability coverage can also help cover the cost of living when you are not able to work because it replaces lost wages, so it’s important that you purchase enough coverage to meet your needs.
As with other types of insurance, the younger you are when purchasing disability insurance, the less expensive it will be.
And like all other types of insurance, there is a tradeoff between risk and reward.
Higher premiums will mean lower costs in case something does happen to keep you from working.
Many companies offer disability benefits as part of their employee health plan but some people choose to purchase stand-alone policies instead.