Types of Insurance You Need, But Probably Don’t Have

You probably are familiar with some types of insurance. If you own a house or car, you probably know you need coverage for them. 

Insurance offers peace of mind against turbulent times, and you can expect to find an insurance policy to cover everything imaginable, from artwork to body parts, vehicles, and businesses. Depending on your needs and situation, the insurer can offer a customized package that serves you. 

This article will go over a couple of types of insurance you may need but you probably don’t have. 

Why should you have insurance coverage?

Think of insurance coverage as a protection for your finances. The right type of insurance can help you save plenty in case of an unplanned life occurrence, emergency, or medical problem. For example, if you have a car accident, auto insurance pays for car repairs but also medical bills. House insurance can help you repair or rebuild your house if a natural disaster hits it. Insurance is always helpful because it can cover expensive bills you wouldn’t afford any other way. 

In exchange for the fees you pay to the insurance company, they provide coverage. It means that you protect yourself and don’t have to worry about what impact an unexpected issue may have on your financial plans. Lacking the right insurance type can derail your financial stability, and this is the last thing you need during the challenging times you’re living. 

However, before you get in touch with your local insurance company, you should research to determine what insurance types make sense for your current needs. You also need to ensure that the additional costs are justifiable because you don’t want to spend money on something you don’t need. 

Let’s discover the types of insurance you may need, but you didn’t consider getting it until now. 

Life insurance

Life insurance is always something to consider when you have a family or people who depend on your income. This type of insurance is also essential, supposing you have a large financial commitment like a significant debt, child education expenses, or home mortgage. It’s great to have it, even if you get a loan to start a small business. 

Life insurance is developed to provide a lump sum to your family or dependants in case you die. You decide how much life insurance you purchase. Usually, your insurer will ask you how many months or years of income you want to cover for your family after you pass away. There are two popular types of life insurance you can choose from

Term life insurance covers a specific number of years. If you pay the fees, your beneficiaries get the maximum lump sum in case of death. However, if you outlive the term, the poly expires, and you need to renew it or get a new one. 

Whole life insurance lasts your entire life and works as a form of savings. In time you can get the finances credited to you. 

Make sure you understand what each insurance policy offers before you get it. 

Motorcycle insurance

There’s nothing more thrilling than riding a motorcycle, but it can also be risky for many reasons when you don’t take the proper precautions. A way to protect yourself when riding a motorcycle is to purchase motorcycle insurance from a reputable provider. Also, you should know that motorcycle insurance is legally required in most countries. Liability or health insurance doesn’t cover the damages to cause to someone else. Motorcycle insurance can also help if you get injured, but to ensure that your coverage does it, you need to ask the provider what yours includes. 

Comprehensive insurance can also cover the expenses if someone steals your motorcycle because it’s easier to steal than a car due to its small size. And, of course, insurance can pay if your motorcycle gets damaged. 

Pet insurance

Chances are you have a pet or plan to adopt one, but you didn’t consider the associated medical costs that come with bringing them home. As a pet parent, you should expect at least one emergency vet bill costing over $2000 during your pet’s lifetime because, similarly to humans, pets get sick, and they need expensive treatment. However, you can get pet insurance and save a lot of money in case your pet needs expensive medical care or massive surgery. Before purchasing one, talk with the vet to find out if they accept insurance policies at their office. 

Identify theft protection

There were 4.8 million identity theft and fraud reports registered in 2020. Identity theft is when someone uses your personal data to commit criminal acts or fraud. The pandemic probably forced you to switch to homework, and you may lack the needed resources to protect your online browsing activity from digital threats. This may leave you vulnerable to hacking and identity theft. The most common types of identity theft are

  • Bank account theft
  • Criminal identity theft
  • Medical identity theft
  • Tax identification theft

You can use identity theft protection to cover the expenses associated with identity theft and protect your finances from its consequences. The insurance can save you plenty of money and countless hours of fixing your case. 

Long-term disability insurance

This insurance policy replaces your income in case you cannot work due to a temporary or permanent disability. Even if you’re healthy and strong, medical issues or accidents can arise all the time, and it’s a good idea to get disability insurance to cover your monthly expenses if you deal with this scenario. 

Insurance companies also offer short-term disability insurance, which may be a good idea if you have an emergency fund you can use to cover your expenses when you cannot work for a little while. Depending on your situation and job, you can get long-term disability insurance or short-term disability insurance to keep your savings intact. 

The bottom line

Ensure that whatever insurance coverage makes sense for your current needs and fits into your monthly budget. And don’t forget to research the market to find the best offer. 

Dragan Sutevski

Posted by Dragan Sutevski

Dragan Sutevski is a founder and CEO of Sutevski Consulting, creating business excellence through innovative thinking. Get more from Dragan on Twitter. Contact Dragan