What Type of Insurance Do You Really Need

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Insurance can help you manage risk. If you live in the United States, you must have four types of insurance.

Health insurance

Health is wealth. You can live without wealth, but you cannot live without health.

The health care bill in the United States can be daunting. You can go bankrupt because of a serious illness. Therefore, health insurance is the most important type of insurance you should have.

Before you buy health insurance, check with your employer whether it has covered it. For many people, insurance alone is quite expensive.

For those who cannot afford regular medical expenses, you can choose short-term health insurance or hospital compensation insurance. They can pay part of the cost.

life insurance

Life insurance is different from other life insurances in that it covers your death, including your funeral and the funeral you left behind.

Many people don't like to talk about this; they think it will not happen to them. It sounds unscrupulous, but life is like this.

The average cost of a funeral is between US$7,000 and US$9,000. If you don't want your family members to be in debt for burying you, you need to have life insurance.

Experts suggest that the coverage of life insurance is 10 times your annual income.

There are two basic types of life insurance, namely term life insurance and whole life insurance.

Term life insurance usually has a fixed period of 5-30 years. When you die within the time limit, you will be covered by insurance.

On the other hand, whole life insurance will provide you with protection until your death, as long as you continue to pay. You can decide which type of life insurance is right for you.

Disability insurance

Likewise, no one wants an accident to happen to them. But according to the Social Security Administration, 30% of workers entering the labor market eventually become disabled before retirement. In the first 10 minutes alone, 498 Americans unfortunately became disabled.

Even if you have health insurance, it can only pay for your medical expenses. You still need to pay for daily expenses. There are short-term and long-term disability insurance, and many employers provide it. If you need to buy insurance yourself, please make sure that the policy provides you with the best income replacement.

Car insurance

If you own a car in the United States, car insurance is essential.

On average, there are 6 million car accidents recorded in the United States. Approximately 40,000 people die in car accidents each year, and 2 million people become permanently disabled.

In the event of an accident, if you do not have insurance, the fine may range from $500 to $1,000, depending on the state. If your car is stolen, or hit by a fallen tree, or damaged in some way, insurance can cover repair or replacement.

 

In conclusion

These are the four basic types of insurance you need in the United States. Before you buy any of them, please consult your employer to see if they cover it.

The purpose of buying insurance is to provide protection for the risks you may face in the future. You can choose the best plan you can afford.

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