4 Types of Insurance Policies Everyone Needs

Life is often uncertain and unpredictable, offering no way of foreseeing events that might significantly impact our lives in the future. And while we cannot fully prepare for what’s to come, the right insurance policies can offer financial protection, and give us some peace of mind knowing we are fully covered no matter the circumstances. If you wish to invest in a more secure future, here are some of the most common insurance policies every individual needs:

1. Health insurance

In countries like the US, where free, universal healthcare isn’t available to citizens, health insurance is among the most important policies any individual can buy, as medical debt and consequent financial catastrophes continue to rise in this nation. While a significant number of Americans get their insurance through employers, private health insurance companies offer a wide array of different policies and coverages individuals can choose from, depending on their personal needs.

Even if you have access to affordable, high-quality healthcare, having global health insurance can have a number of benefits for many individuals. Whether you are an international student, a frequent traveller, or even relocating to another country, this insurance policy can protect you from financial loss by offering coverage for emergencies and premium access to healthcare you might not have had otherwise.

2. Personal insurance

From automobile and homeowners insurance to valuable articles and high-net-worth coverage, including a number of umbrella policies, personal insurance can come in many different forms. No matter where you are in the world, investing in several types of personal insurance policies is the best option for most individuals.

When selecting the best policies for your personal needs, it's recommended to contact an independent insurance agency with plenty of knowledge and experience in this field. By combining the expertise of their staff with great relationships with top-rated insurance providers, such professionals will be able to offer proper guidance and valuable advice that will help you acquire the most suitable insurance protection for your wants and needs, while ensuring you meet your financial goals as well.

3. Life insurance

In the event of the policyholder’s death, a life insurance policy will pay a predetermined sum of money to designated beneficiaries, whether that’s people, companies, or trusts. Although life insurance policies could be beneficial for anyone looking to cover any final expenses, it’s especially helpful when people in your life depend on your income, such as family members who need to secure their future, or even business partners needing to buy out your shares.

While life insurance premiums could depend on a number of factors, such as your age, health, and other risk factors, there are generally two main types to choose from: term, covering you only for a certain period of time for a typically lower price, as well as the more expensive whole life policy, which remains in effect throughout your entire life, as long as you pay premiums.

4. Disability insurance

Disability insurance, on the other hand, helps to replace your income in case of an occurrence that leaves you unable to work. Both short-term and long-term disability insurance policies are generally available, but it’s important to remember that policies will typically have a very specific definition of what disability means to them.

Similarly, these policies will only pay a certain percentage of your income prior to becoming disabled, with short-term insurances often paying from 60% to 70% and long-term policies between  40% and 60%. Even though many believe these policies can be quite costly, disability insurance is also an incredibly beneficial option everyone should choose, as long as they select a policy with a broader definition of disability and a higher percentage of payout.

While there are a number of different types of insurance, the policies mentioned above are what most people need and commonly choose. When deciding on the best options for you, hiring professional help is always advised.