5 Kinds of Insurance Coverage Everyone Should Have

Insurance is a crucial way to protect yourself and your family when life throws you a curveball. Most people may need these five different types of insurance. Are you covered? 

1. Auto Insurance

If you own a car, you will want to have auto insurance. If you have an auto loan, it’s possible your bank may require a minimum amount of coverage. State laws also often mandate what you need in terms of auto insurance. 

Even if you’re driving an inexpensive car, don’t assume you don’t need auto insurance. Auto insurance doesn’t just cover damage to your vehicle; it may cover damage to other vehicles as well as medical and legal expenses for people injured in accidents. 

If you don’t own a car but often borrow someone’s car and they have minimal insurance, or if you frequently rent cars, you may want to look into non-owner car insurance. You may be required to have non-owner car insurance if you’ve been convicted of a major traffic offense.

2. Homeowners or Renters Insurance

Homeowners insurance is a must if you own your home. To take out a mortgage, you’ll likely have to show proof of homeowners insurance coverage. These policies protect what may be your biggest investment from the expenses of repairs after natural disasters, theft or accidents. Homeowners insurance covers the structure as well as your possessions.

Renters insurance is similar to homeowners insurance, but it only covers your possessions since you aren’t responsible for the plumbing, electrical, structure and more in a rental unit. You might think you don’t need renters insurance, but what if a fire destroys everything in your rental unit? The cost of replacing your clothing, electronics, furniture, sports equipment, household items and more would add up quickly.

3. Health Insurance

Even if you’re young, healthy and following good lifestyle habits, health insurance is important. There’s no guarantee that you won’t get sick or hurt, and treatment for a serious illness like cancer or injuries from an accident could cost hundreds of thousands of dollars. You may be able to get health insurance through your employer or through plans offered through the Affordable Care Act. 

4. Life Insurance

If you have people who depend on your income, life insurance is a great safety net. With life insurance, those who rely on your income can still meet their needs if something happens to you and your paycheck isn’t coming in. 

If you have young children and you stay home with them, getting life insurance is a wise choice. If something happens to you, your partner will be faced with the costs of childcare and the other responsibilities you handle.

Even if you’re single and don’t have children, you may want to have a life insurance policy to cover funeral expenses so your loved ones don’t have to pay for them. You might also choose to purchase life insurance when you’re younger because your options will probably be more affordable.

5. Disability Insurance

What would happen if you couldn’t work? Disability insurance may provide you income if an illness or injury keeps you from performing your job.

If people depend on your income, you probably need disability insurance. Even if nobody relies on you financially, if you’re self-employed or if you own a small business, this coverage can provide you with the safety net that might come with a corporate job. 

If you have disability insurance through your employer, make sure to check the limits. You may require additional coverage to meet your needs.

Ask for Help

When you’re asking yourself, “What insurance do I need?” the options can seem overwhelming. A Farm Bureau insurance agent can sit down with you, review your current situation, plans and goals, and recommend the coverage that’s right for you. Reach out for a conversation today.