One of the biggest fears people have when they’re thinking about becoming entrepreneurs is that they won’t be able to pay their monthly bills if something goes wrong. Luckily, you can put your mind at ease with the right kind of insurance coverage. By choosing the right insurance policies and paying them on time every month, you can protect yourself and your family from many of life’s surprises. Here are five types of insurance you need to keep yourself safe from harm.
1) Life insurance
Most people know they need life insurance but don’t know how much or what kind. There are two main types of life insurance- term and whole life. Term life insurance is temporary and only covers you for a period of 10-30 years. Full life insurance is more expensive, but it protects you for your entire life. It would be best if you also decided how much coverage you need. A good rule of thumb is 5-10 times your annual salary. The next type of insurance you should consider is disability insurance. If you become disabled, this policy will replace some of your income so that you can still pay bills and live comfortably without worrying about losing your home.
When shopping for disability insurance, look at the policy’s definition of disability. For example, many policies exclude mental disabilities such as depression, bipolar disorder, and schizophrenia from being covered by the policy. Be sure to talk with an agent about these exclusions before purchasing the policy.
The third type of protection we recommend is life insurance through work because group plans often offer better rates than individual plans bought on the open market. However, employer-provided benefits often have waiting periods before they kick in, which means you’ll need to purchase supplemental life insurance during those waiting periods. Another consideration is whether the plan offers guaranteed issues or underwriting. Guaranteed issue means that any person who applies for coverage will be issued a policy regardless of their health status. Underwriting means the company may reject an applicant based on their health history or other factors like age.
The fourth type of protection worth considering is long-term care insurance.
2) Health insurance
You might think that health insurance is only for hospital visits and doctor trips, but it covers a lot more. Health insurance can help pay for prescription drugs, preventive care, mental health services, and more. Plus, if you have a severe illness or injury, health insurance can help you pay for the cost of your treatment.
Several different types of health insurance plans are available, so choosing one that meets your needs is essential. For example, if you have a family, you’ll want a plan that covers your spouse and children. You may also want a plan with low deductibles and copayments to afford to see the doctor when you need to.
Some employers offer health insurance as part of their benefits package. If not, there are government programs like Medicaid and Medicare. Plans vary by state. Work at a company without health insurance coverage. You may be able to purchase an individual policy on your own.
3) Homeowners or renters insurance
Homeowners’ or renters’ insurance is a must for anyone who owns or rents a home. This insurance protects your belongings in a fire, theft, or disaster. It also provides liability coverage in case someone is injured on your property.
You can purchase homeowners or renters insurance through an insurance agent, broker, or insurance company. Be sure to shop around and compare rates before buying a policy. Make sure you understand the benefits offered by different approaches so you can find one that best suits your needs. If you are renting, contact your landlord to find out if they offer any types of insurance for their tenants.
If you have pets, ensure you’re covered against pet-related injuries or damage done by your animals with injury or contents coverage available under many policies. Some companies even provide coverage for veterinarians’ fees incurred during treatment. Talk to your agent about what types of things are typically covered and those that might not be included in the base price. For example, some policies include reimbursement for stolen items, but others do not. Find out what is included in your quote so you know how much more you’ll need to spend when the time comes.
Next, look at deductibles. Policies come with a set deductible, meaning if something happens, it will only pay up to that amount towards fixing damages. Check how high the deductible is and see if it’s something you’re comfortable paying out of pocket before signing up for the policy. Finally, check whether or not there are exclusions – certain events where coverage does not apply – listed within the policy, like earthquakes or floods that may affect your area. Knowing this will help prepare you for situations where insurers won’t cover certain damages.
4) Auto insurance
No one plans on getting into a car accident, but the truth is, they happen every day. That’s why it’s so important to have auto insurance. If you’re in an accident, auto insurance can help pay for repairs to your car or the other person’s car and any medical expenses. It can also provide protection if your vehicle is stolen or damaged by a natural disaster. There are different types of coverage available, including liability coverage which pays for damage done to someone else’s property, collision coverage which pays for damage done to your own vehicle, and comprehensive coverage, which covers theft and vandalism (these two coverages are not always included in standard auto policies), uninsured motorist coverage which provides protection against drivers who don’t have insurance, underinsured motorist coverage which provides extra compensation when another driver doesn’t have enough insurance or has no assets; and personal injury protection that covers medical expenses after an accident. Find out more about choosing the right auto insurance type here.
5) Umbrella policy
An umbrella policy is a type of insurance that provides extra liability coverage above and beyond the limits in your home and auto insurance policies. It can help protect you from lawsuits and other financial damages if you’re involved in an accident. While umbrella policies aren’t required, they can be a good idea for anyone who wants an extra layer of protection. They benefit people with high-value assets who live in high-risk areas or have personal injury histories.
A Personal Umbrella Policy is available through Allstate! We offer different levels of coverage, including $1 million per occurrence/$2 million aggregate, so there’s something to fit every need. Contact us today to learn more about how a Personal Umbrella Policy could benefit you or your family!
If you’d like to learn more about our personal umbrella policies, call 855-843-6597 now for help from an agent in your area. Or take a few minutes to get online with us – it only takes 3 minutes on average,* and we’ll help answer all your questions! Our agents are standing by 24/7 to ensure that no matter what time you decide you want to protect yourself with an umbrella policy, we’re here waiting for your call.
- On average, customers spend 3 minutes on site researching car insurance prices with Geico® before seeing rates on their own computer screen – comScore Media Metrix Multi-Platform Jan/14–Apr/14 H1 2014