3 Types of Insurance Every Adult Should Have and Why

When you are young and healthy, insurance can seem like just another unnecessary expense. However, the right coverage can mean the difference between financial security and ruin for your family. These three types of policies can protect your assets and reduce personal liability.

1. Health

Most policies offer coverage for preventative care and screenings so you can spot possible problems early and better manage chronic conditions. That lowers overall healthcare costs. So, even if you rarely visit a doctor, an annual physical is still a good idea. Plus, an injury or sudden illness can easily end up costing you tens of thousands of dollars after testing or a hospital stay. Even a high deductible plan will guard against those balances being held against you.

2. Life

Life insurance is not about you; it is for the people who are left behind when you die. There are several types of coverage, but most can be broken down to either a permanent or term policy. An affordable term life insurance policy can give you peace of mind that, if something were to happen tomorrow, your family would be able to pay expenses and carry on with their lives.

3. Auto

Nearly every state has a minimum auto insurance requirement, so you may be legally obligated to have this. If you are in one of the few that don’t, however, it is still a good idea. Liability coverage protects you in the event of an at-fault accident that damages property or causes an injury by covering medical bills and repair costs. Other coverages will pay to repair your vehicle if it is damaged in an accident or storm, regardless of who is at fault. For example, it can replace a car totaled by an uninsured driver.

Don’t view insurance as an extra. The right policies can help you protect your family’s assets, reduce personal liability and support financial stability.