There are so many different types of insurance available to Americans that it can be overwhelming. Whole life insurance, disability, longevity, mortgage protection, pet insurance, cell phone insurance, but there are actually three specific types of insurance that almost every adult needs.
Renters / Home Insurance:
Renters or homeowners policies are very similar forms of insurance. Both generally cover you for liability, personal property, and loss of use. Home Ins. In addition, it covers the structure when it has it. By the time you’re free and clear of your parents’ insurance policy, perhaps when you graduate from college or high school, “you should buy a renters insurance policy.”
A small amount of coverage for your personal property is helpful, but it’s really the liability insurance you want and need. Liability insurance can be useful for various situations in which you may find yourself.
Add a personal injury endorsement to expand liability protection.
Health insurance:
American health insurance may be overpriced, but it is a correct and necessary product compared to the alternative = no health insurance. Not having any health insurance can have a devastating change in anyone’s personal net worth. Ignore health insurance at your own risk.
All Americans really should get private health insurance. health insurance through your employer, or Medicaid or Medicare through the government.
Consider all of the various coverage options when shopping for health insurance.
Auto coverage:
Auto insurance is insurance for your car and for you, the driver. It’s pretty hard to be allowed to buy a car without car insurance these days. However, when transactions are made through third parties, it can happen. This is a huge mistake, not only is it generally illegal to be uninsured on a car of a certain minimum standard determined by the state, but it can also be financially ruinous not to have car insurance at all times. Don’t skip insurance even for a day.
Young adults must have their parents’ or their own car insurance. Knowing when to split on your own policy can be tricky. However, once you’re out of the house, have the title in your name, it’s usually time to get the insurance policy fully in your name.
For people who don’t own a car, consider purchasing non-owner car insurance. Non-owner auto insurance allows you to have auto coverage when you drive someone else’s car. People who use other people’s cars or rent cars or have some savings should consider this.
Consider purchasing as much uninsured motorist coverage as you can afford.
The Big Three Forms Americans Really Need:
There you have it, three forms of insurance that all Americans really should buy. Yes, there are all kinds of useful insurance policies that many consumers should consider, such as term life insurance, short- and long-term disability insurance, and earthquake insurance, but many of them aren’t really for everyone. These three can really be for all adults.