When it comes to insurance, most people think of it as just another monthly expense. And if insurance is not mandated by their state, they may choose to opt out. However, there are a few insurance products that may seem like an unnecessary monthly expense but are actually pretty beneficial to have. For most people, these insurance products protect the things they use and the people they love.
There are a few common insurance products that most people know about or have, but there are others—just as useful—which aren’t as commonly used. Here are five insurance products that everyone should have, which may seem like a waste but aren’t.
Common Types of Insurance Products That Aren’t a Waste
1. The Product of Health Insurance
Health insurance is an extremely useful insurance product to have. It can greatly cut down the expensive rising costs of healthcare in the United States. Health insurance can make healthcare somewhat affordable and can prevent a person from going into debt or jeopardizing their health. This is especially true for those who need regular medication/have chronic conditions.
Most health insurance policies will cover everything from prescriptions to hospital stays. For a small amount of Americans, their work place provides health insurance (through a deduction on their paycheck) that may be cheaper than finding a provider on their own. For those who are not provided health insurance through work, there are U.S. government programs such as Medicaid that help residents gain access to health insurance. For a couple hundred dollars a month, a person can save thousands of dollars and maintain their good health.
2. The Product of Homeowner’s Insurance/ Renter’s Insurance
Most people do not think too much about the safety of the things inside their home, until a natural disaster or theft happens. This is where the product of homeowner’s insurance and renter’s insurance comes in. For many people who buy a home, homeowner’s insurance is a mandatory expense. And even for those who are not required to purchase homeowner’s insurance, it is a very beneficial product to have. Same thing goes for those who are renting a place.
Most homeowner’s and renter’s insurance will protect against natural disasters, fires, theft, home repairs, and liability from having guests over. Before deciding on coverage, it is important to understand more about the area that the home is in. For example, in a place that gets flooded often, adding flood protection/coverage to the policy would be a smart move. If an area is prone to theft, then it may be wise to get extended theft coverage. Having the right kind of home owner’s/ renter’s insurance can be extremely helpful to protect a huge asset in case of an emergency.
3. The Product of Car Insurance
In many states across the U.S., car insurance is mandatory for drivers. However, there are a few states in which the product of car insurance is not mandatory. No matter what state laws say, if you are driving, it is a really good idea to look into car insurance coverage.
Car insurance protects not only the driver, but also everyone else on the road and their vehicles. If an accident happens, car insurance will cover the majority of the cost—which could add up to thousands—associated with medical bills and car repairs.
Not So Common Insurance Products That Aren’t a Waste
4. The Product of Life Insurance
This insurance product is not often used by a lot of people unless they are older, but it may be worth looking into for young adults as well. Life insurance acts as security for family members if the insurance policy holder passes away. It can be a life jacket for family, especially if the policy holder was the main bread winner of the household.
For many Americans, life insurance is made available from their work, while others find a private lender. There are many life insurance packages out there to choose from, and lenders will give you plenty of options to help secure the future for loved ones.
5. The Product of Disability Insurance
Disability insurance is a product that many Americans do not even know about. Disability insurance provides coverage in case a person has long-term or short-term disability. For those who work high risk jobs or are the primary bread-winner in their home, it is an extremely good idea to look into this type of insurance. It could protect you and members of your home from dealing with a financial crisis.
Additional Products/Benefits Most Insurance Types Offer
Here are a few additional products or benefits that exist in the insurance lending world:
- Extended Coverage: For additional monthly payments, a person can get the most coverage and protection from any insurance type.
- Bundling Discounts: The more insurance bought from a lender, usually the cheaper the cost.
- Adjustment of Deductibles: For most insurance, the more a person raises their deductible the lower the cost of the insurance for the month.
When looking at insurance products, there are five that are definitely not a waste to have. Health insurance, home insurance, car insurance, life insurance, and disability insurance are the most important and beneficial to have and are definitely worth the costs. These five insurance products could protect you, your loved ones, and even strangers—they should be a part of every American’s safety net. No matter what type of insurance is being looked into, there are similarities in coverage and discounts that exist throughout the insurance world.