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Protect Yourself – What insurance do I need?

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Protect yourself, what insurance do I need?

When it comes to insurance, we get bombarded with a zillion different products that we don’t quite understand, aren’t sure if we need and in reality can’t afford. No wonder we glaze over – it seems hopeless!

While you can insure just about anything (even body parts!), here are very brief overviews of the main types of insurance:

Health Insurance: Covers medical and surgical expenses incurred by the person or insured. Depending on the type of health insurance, the insured will either pay out of pocket and get reimbursed or the insurance provider will pay the health care provider directly. Health insurance is a benefit that’s often offered by employers.

Disability Insurance: Think of disability insurance as insurance for your paycheck should you not be able to work due to illness or injury. If you are covered by disability insurance you’d receive a paycheck while you are unable to work. There are two types of disability insurance, short-term and long-term. Some employers offer one or both types of disability insurance.

Life Insurance: Life insurance protects against the loss of income that would result if the insured person passed away. The policy has named beneficiaries that receive a sum of money in the event that the insured person passes away. There are two basic types of life insurance, term and whole-life. Some employers offer life insurance benefits to their employees.

Renters or Homeowners Insurance: Renters insurance protects your belongings in an apartment or home that you are renting in the case of certain disasters and theft. Homeowners insurance protects against damage to your home as well as your belongings in the case of certain disasters or theft. Most homeowners and renters policies also offer liability protection in the case you or someone else gets injured while in your home.

Auto Insurance: Protects against the expenses associated with damage to a car. The insured pays premiums or payments to the car insurance company and then the car insurance company covers any damage to the car in the case of an accident or other damage.

Long-term Care Insurance: Provides nursing-home care, home health care and personal care for individuals over 65 years old with a chronic disabling condition.

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