Unexpected Costs? That's What Insurance Is For

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(Photo : stevepb from pixabay)

Life is good at throwing curveballs at us, that's undeniable. Whether or not you have insurance for when it does is a different story. Insurance gives you a buffer from unexpected expenses, such as medical expenses. While most of us realize the importance of insurance, not everyone knows all the diverse types and what they do. Here's a quick look at a few different types and how they can help.

Life Insurance

You need this type of insurance because death is expensive. You need to protect your family from the cost. First, determine whether you need a revocable vs irrevocable trust and why. It will let you know which type of policy you need. Either way, a life insurance policy will allow you to ease the financial burden your loved ones will face following your death.

Health Insurance

Both unexpected and expected health care expenses (these can include things like serious surgeries, hospital stays, medications, and routine visits) can quickly add up and cause quite a bit of debt for anyone who can't afford the out-of-pocket expenses.

The Affordable Care Act made this a bit easier for people to get health insurance because it allows people to find all of the possible plans on one central website. With health insurance, the costs are mitigated by the insurer, who pays part or all of the medical expenses.

Auto Insurance

Driving while not insured is against the law and extremely dangerous because whoever is driving, as well as the vehicle in question, isn't protected against vandalism, theft, and accidents. Anyone who owns a vehicle needs car insurance. That type of insurance covers the vehicle the policy is for and is meant to provide protection against bodily injury or property damage that can be the result of driving.

Umbrella Insurance

If you believe that you need a bit of extra protection in addition to any other type of insurance policy, for example, on a vehicle or your home, this is what you need. Umbrella insurance will assist in further protecting you from the risk of being taken to court for damages. Anyone who has insurance of any type might want to get this.

Travel Insurance

Are you planning to set off for an exotic destination? You can ensure that the cost of your airfare will be covered in the event of medical emergencies or any other type of incident that might cause your trip to be cut short or canceled entirely. Anyone planning to travel can utilize travel insurance. It covers trip cancellations, misplaced or lost luggage, accidents while traveling, and even any medical expenses while on your trip.

Pet Insurance

Paying for pet insurance might be a bit more cost-effective than having to pay a lump sum to the vet if your pet needs emergency medical assistance, like a visit to the emergency room. Pet owners need this to mitigate the expense of owning a pet. It covers part or all of the cost of being treated by a vet when your pet becomes injured or ill. There are essentially two types - one is a wellness plan that will cover shots and routine visits, while the other is more comprehensive and will cover treatment for diseases as well as major surgeries.

The thing is when life happens, and it does happen, you need to do everything in your power to make sure that you're as prepared as you possibly can be. It's always a good thing to take a look at all of the distinct types of insurance and decide which types of coverage you need so you'll be prepared.