What are the different types of personal insurance
Life is filled with unexpected turns. While we can’t stop certain things from happening, but we can seek out financial protection for our lives. Insurance is something that gives us financial protection during such an unlikely situation.
There are different types of insurance policies available that make it difficult to decide on which policy you need. Factors such as age, lifestyle, children and employment benefits need to be considered when choosing the right policy. Let us understand some important types of insurance and what specific aspect of your life do they cover.
Health Insurance
Health insurance is a financial coverage offered for your medical expenses by an insurance company. Every citizen in the United States should have Health insurance. There are a variety of plans with different levels of coverage and premiums.
Check out our guide here: Comparing types of health insurance plans
Short Term Health Insurance
Short Term Health Insurance plans are less expensive than standard health insurance with limited coverage. These plans are offered without special enrollment periods. They can be beneficial to those in need of limited protection from catastrophic events and those traveling to the United States for short periods of time.
Short Term Health Insurance has limited benefits and duration when compared to standard health insurance. Also, it does not generally cover preventive care or pre-existing conditions.
Learn more about Short Term Health Insurance and see if it is right for you.
Medicare
Medicare is a national health insurance program of the United States for American citizens and legal immigrants aged 65 and older. Some disabled individuals are also eligible for Medicare. Medicare coverage can be supplemented in various ways by officially approved plans.
Medicare coverage can be supplemented in various ways by officially approved plans.
Read our Ultimate Guide on how Medicare works and how to supplement it.
Life Insurance
Having Life insurance means leaving behind financial security for your family who is dependent on you to pay the bills. Its coverage gives a financial cushion to your family after your death.
Learn more about Life Insurance here.
There are different types of Life Insurance that provide varying benefits.Learn more about the types of Life Insurance here.
Disability Insurance
Disability Insurance provides a replacement for some part of your income if you become injured and can no longer work. If there is an accident that leads to disability then you will receive payments to cover not just actual expenses but also loss of income. This helps you to meet your financial needs as well as maintain your current lifestyle.
Learn more about Disability Insurance here: What is Disability Insurance.
Social Security Disability Insurance is a special type of disability benefit provided by the United States government to those who are no longer able to work due to a disability.
Learn more about Social Security Disability Insurance here.
Bottom Line
Though having insurance can be an expensive investment, but not having it can be a serious financial risk. Always check with your employer coverage and opt for economical coverage that meets your needs. If needed, discuss your needs with a financial advisor and choose the best option to fit your needs.