4 Types Of Insurance Policies Everyone Needs

Comprehensive insurance covers theft and damage to your car due to flooding, hail, fire, vandalism, falling objects and animal bumps. Collision coverage and comprehensive coverage are often sold single premium life insurance rates together and are optional. Universal life insurance is a type of permanent life insurance that allows you to build up cash value, withdraw money, and potentially have basic investment options.

If you are responsible for an accident, your liability coverage will bear the cost of injury or property damage caused by the collision. Most states require you to have a basic minimum amount of coverage, so check with your insurance agent to find out how much you need. Often, even employees with excellent health insurance, a good nest of eggs, and good life insurance don’t prepare for the day they may not be able to work for weeks, months, or never again. While health insurance pays for hospitalization and medical bills, you still have all the expenses that your salary had covered. Consider permanent life insurance if you want to build up cash value to supplement retirement savings or to offer a death benefit to someone who is financially dependent on you for a long period of time. In addition to the death benefit, permanent life insurance includes a cash value component.

Unlike term life insurance, permanent insurance provides permanent (“lifetime”) coverage. There are several subtypes, or options, that fall under this type of life insurance, of which they offer guaranteed premiums, flexible payments, and/or exposure to the stock markets. Start by looking for the best companies for a specific type of insurance coverage that you know you need, such as collision insurance or personal injury protection. You can also look at the best or cheapest auto insurance companies in your state and narrow down your options from there. If a creditor needs life insurance as a condition of providing a loan, they may be able to assign an existing life insurance policy, if they have one.

Let’s say you’re ultimately to blame for a multi-vehicle accident (that’s no fun). Your medical bills and property damage can quickly add up to more than your car insurance covers. And if you’re sued for the difference, your savings, your home, and even your future wages could be in the crosshairs.

Even if you don’t need to have collision and comprehensive insurance, they’re usually a good investment, as they protect you from paying out of pocket for expensive vehicle repairs. Liability car insurance is coverage that pays for other people’s expenses after the accidents you cause, and there are two components. Property damage liability insurance pays for any damage you cause to someone’s property and bodily injury liability insurance pays for your medical bills. It is the mandatory minimum requirement for all motor vehicle owners, under the Motor Vehicles Act 1988. Due to the limited financial support, the premiums on such policies are also often low.