4 Essential Insurance Types That Everyone Should Have 

Types Of Insurance

Choosing among the various types of insurances that are available may prove to be a challenging endeavor. It is an individual choice and is based on the specific circumstances surrounding a person’s life. Factors that may play a role in determining what types of insurances are needed include age, benefits received through employment, and if there are children in the household or not.

Based on studies and advice conducted by and given by financial experts, we should ALL have – at the minimum – life insurance, health insurance, long-term disability insurance, and automobile insurance. Continue reading to learn more about these 4 types of insurances. 

  1. Life Insurance 

This type of insurance is a specially-designed contract between an insurance company and a policy owner that guarantees a specific sum of money is paid to the outlined beneficiaries once the insured owner dies.

The beneficiary that receives the money will be able to utilize the proceeds to cover final expenses and tend to financial obligations once the insured passes away.

If you were to die, this leaves behind funds for loved ones that are dependent on your salary. The two types of life insurance available are whole life and term life. 

  1. Health Insurance 

A study conducted in the year of 2019 established that most families are just one serious illness away from being put in a position where bankruptcy must be filed. Illnesses can result in high medical expenses and loss of income.

Ideally, you should attempt to get health insurance through your employer. If this is not possible, you should seek out a policy on your own.

When shopping for health insurance, you should factor in deductibles, co-pays, and types of coverages available. While relatively expensive, it is less expensive than if you have no coverage at all. 

  1. Long-Term Disability Insurance 

Long-term disability insurance is often referred to as “disability income insurance”. This is because of the fact that its design involves replacing a portion of that which you would earn if you find you are unable to work due to an illness or an injury.

Most long-term disability options include benefits that cover for a period of years. In most instances, it provides anywhere from 40% to 70% of your income for a prolonged period of time. 

  1. Automobile Insurance 

Finally, if you own an automobile, it is imperative that you obtain automobile insurance coverage. This is a type of safeguard that is designed to protect your vehicle and your overall finance well-being in the event of an accident, a theft, or other types of incidents in which you are not in control.

It covers repairs, medical-based expenses, injuries, and damages that you are responsible for and more. It will not cover maintenance or standard wear and tear, but it comes into play when it matters. 

Contact Us Today 

We here at Modica Associates specialize in a wide variety of insurance coverages. If you are ready to pursue the insurance coverages that you need to protect yourself and your loved one, contact us today. You may get in touch with one of our insurance agents by calling the following number: 718-855-1836

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