The Personal Finance Insurance: Four Types of Insurance Policies and Coverage You Need was reviewed by ERIC ESTEVEZ and fact-checked by RYAN EICHLER.
While we can’t always prevent the unanticipated, we can sometimes shield ourselves and our families from the worst financial consequences.
Your individual circumstances, such as the number of children you have, your age, your way of life, and the benefits you receive from your job, all play a role in determining the appropriate type and amount of insurance.
Life, health, auto, and long-term disability insurance are the four types of insurance that the majority of financial experts recommend.
The most important takeaways are that life insurance will assist in financially supporting your heirs.
In the event of a serious accident or illness, having health insurance can shield you from paying astronomical costs.
You won’t have to worry about losing your job if you are disabled for a long time.
You won’t have to pay for a costly accident if you have auto insurance.
1:14 The Four Kinds of Insurance That Everybody Needs Life Insurance Traditional whole life insurance and term life insurance are the two primary types of life insurance.
Whole life insurance can be used for both income and protection. It has a cash value component in addition to a death benefit.
You can end the policy by taking the cash value of the policy as the value increases, and you can access the money by taking out a loan or withdrawing funds.
Your premiums remain constant with term life insurance, which covers you for a predetermined period of time, such as 10, 20, or 30 years.
A term policy, which is typically the most affordable kind of life insurance, can help pay for your mortgage loan or your children’s college education.
