<\/p>\n
\n Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors’ opinions or evaluations.\n<\/p>\n
Life is full of surprises. While some are exhilarating, others are devastating emotionally and financially, like a car accident or a kitchen fire. That\u2019s why there are many types of insurance to help after unexpected disasters.<\/p>\n
To help you sort through your options, here are the main types of insurance policies.<\/p>\n
Driving without auto insurance is against the law in almost every state. Not only is it illegal to drive without coverage, but it could significantly cost you if you get in an accident, especially if you\u2019re at fault. Fortunately, several types of car insurance can pay for vehicle damage and injuries after an accident:<\/p>\n
Related:<\/strong> Best car insurance companies<\/p>\n Unlike auto insurance, no state law stipulates that you must have homeowners coverage. However, if you financed your home, your lender will usually require coverage to protect their interest in your property. This way, if your home is damaged or destroyed, you have funds to rebuild and won\u2019t walk away from your mortgage.<\/p>\n Even if you don\u2019t have a mortgage and paid for your home outright, you\u2019re responsible for repairs or replacement costs if something damages or destroys your home and you don\u2019t have home insurance. It\u2019s wise to buy a home insurance policy.<\/p>\n Home insurance policies wrap up several types of coverage, including:<\/p>\n Remember that a standard home insurance policy doesn\u2019t cover damage from floods or earthquakes, but separate insurance is available for these problems.<\/p>\n Related:<\/strong> Best homeowners insurance companies<\/p>\n If you don\u2019t own a home, that doesn\u2019t mean you don\u2019t need insurance. Renters insurance helps you replace your belongings such as electronics, furniture, and clothing if they\u2019re stolen or damaged. Problems covered include fire, tornadoes, explosions and more.<\/p>\n Without coverage, you would be responsible for replacing all of your stuff if your rental goes up in flames. While your landlord\u2019s insurance will cover damages to the structure of a rental, it doesn\u2019t cover tenant property. In some cases, landlords will require proof of coverage to rent a unit.<\/p>\n Renters insurance includes:<\/p>\n Related:<\/strong> Best renters insurance companies<\/p>\n Auto, home, and renters insurance come with liability coverage that protects you and your family\u2019s assets from lawsuits brought against you. But every policy has liability limits. If you have substantial assets, your homeowners, renters or auto liability insurance may not be sufficient if you lose an expensive lawsuit.<\/p>\n Umbrella insurance can provide additional liability insurance if the unexpected happens and you\u2019re liable. For example, let\u2019s say someone sues you for $500,000 of medical bills after tripping on your sidewalk and injuring their back. If your home insurance liability limit only goes up to $300,000, you\u2019re responsible for the remaining $200,000. Umbrella insurance would cover this extra cost.<\/p>\n If anyone depends on you financially, finding the best life insurance for your situation is essential. Forty-four percent of U.S. households would face financial hardship within six months if the primary wage earner died\u2014and for 28%, it would be just one month\u2014according to LIMRA, an industry-funded research firm. Life insurance is one way to replace your income if you die unexpectedly.<\/p>\n Life insurance policies usually fall into two main buckets: term life insurance and permanent life insurance.<\/p>\n Term life insurance lets you lock in rates for a particular length of time, like 10, 15, 20 or 30 years. During this time, your premiums are level. Once the level term period ends, you can typically renew the policy on a yearly basis but at a higher cost each time.<\/p>\n If you want to cover a specific financial obligation, like the years of college or a debt, term life insurance may be a good fit for you. Term life insurance is usually the most affordable type of life insurance.<\/p>\n Permanent life insurance can provide lifelong coverage. In addition to the death benefit, permanent life insurance includes a cash value component. If the cash value builds, you can access the money by taking a loan or withdrawing funds. If you decide to end the policy, you can take the cash value of the policy (minus any surrender charge).<\/p>\n Consider permanent life insurance if you want to build cash value to supplement retirement savings or to provide a death benefit for someone who will rely on you financially for a long period. Permanent life insurance is more expensive than term life insurance.<\/p>\n Types of permanent life insurance include whole life insurance, universal life insurance, variable life insurance and burial life insurance.<\/p>\n Related:<\/strong> Best life insurance companies<\/p>\n Medical bills are one of the frequent causes of financial hardship in America, according to the American Public Health Association. Even if you\u2019re young and healthy, a stay in the hospital could cost you about $30,000 for three days, according to Healthcare.gov. If you\u2019re uninsured, that could wreck your finances.<\/p>\n You can usually get a health insurance plan through your employer. If your employer doesn\u2019t offer health insurance or if you\u2019re unemployed, you can shop for health insurance plans through the federal health insurance marketplace. Health insurance plans from the federal marketplace can provide subsidies if you meet income and eligibility requirements.<\/p>\n Or you can buy health insurance by contacting health insurance companies directly or going through a health insurance agent or broker.<\/p>\n If the monthly premiums seem unaffordable, look into costs for a high deductible health plan. With this type of coverage, you must pay a higher deductible before coverage starts, but it will lower your monthly health insurance cost.<\/p>\n In addition, you can combine a high deductible insurance plan with a Health Savings Account, so you can stash away tax-free dollars to pay for future medical costs.<\/p>\n Typically, you can buy health insurance only during open enrollment periods specified by the health insurance companies selling them. Open enrollment for marketplace plans is usually from Nov. 1 to Dec. 15, though some states extend the deadline.<\/p>\n Exceptions to the open enrollment period are allowed under certain circumstances if you\u2019ve had a recent life-changing event, such as getting married or having a baby.<\/p>\n You might think you need disability insurance only if you have a job involving dangerous activities. But most disabilities aren\u2019t work-related. Arthritis, cancer, diabetes and back pain are among the most significant causes of disabilities, according to the Council for Disabilities Awareness. That\u2019s why it\u2019s wise to consider disability insurance as part of your financial plan.<\/p>\n If you become sick or disabled, leaving you unable to work, disability insurance supplements a portion of your income. It typically replaces 40% to 70% of your base income and usually has a waiting period before coverage kicks in and a cap on how much it pays out monthly.<\/p>\n Aside from qualifying for Social Security disability benefits, there are two main ways to get disability insurance:<\/p>\n Adults turning age 65 have a 70% chance of needing long-term care at some point, according to the Department of Health & Human Services. Whether it\u2019s in-home assistance to help with everyday tasks or an extended stay at a nursing home, most seniors will likely need assistance at some point in their lives. And long-term care isn\u2019t cheap. It costs an average of $9,000 per month to stay in a private room in a nursing home, according to Genworth, which sells life insurance and long-term care insurance.<\/p>\n Long-term care (LTC) insurance can help pay for expenses such as in-home care, adult day care or nursing home stays. The best time to buy long-term care insurance is when you\u2019re in your 50s or 60s. Buying coverage during this age range is usually the most cost-effective time to buy. As you age, the cost of LTC insurance will increase.<\/p>\n Be sure to research this product thoroughly before you buy it. In recent years policyholders have been surprised by large premium increases that have made the insurance unaffordable for many after they bought it. The Congressional Research Service has an overview of long-term care insurance.<\/p>\n If you\u2019re buying life insurance, you may be able to add long-term care coverage to your policy as a life insurance rider or buy a policy that combines life insurance and LTC coverage.<\/p>\n","protected":false},"excerpt":{"rendered":" Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors’ opinions or evaluations. Life is full of surprises. While some are exhilarating, others are devastating emotionally and financially, like a car accident or a kitchen fire. That\u2019s why there are many types of insurance to help after […]<\/p>\n","protected":false},"author":1,"featured_media":1252,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[5],"class_list":{"0":"post-1251","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-dolor-de-espalda","8":"tag-dolor-de-espalda"},"_links":{"self":[{"href":"https:\/\/americanchiropractors.org\/es\/wp-json\/wp\/v2\/posts\/1251","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/americanchiropractors.org\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/americanchiropractors.org\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/americanchiropractors.org\/es\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/americanchiropractors.org\/es\/wp-json\/wp\/v2\/comments?post=1251"}],"version-history":[{"count":1,"href":"https:\/\/americanchiropractors.org\/es\/wp-json\/wp\/v2\/posts\/1251\/revisions"}],"predecessor-version":[{"id":1253,"href":"https:\/\/americanchiropractors.org\/es\/wp-json\/wp\/v2\/posts\/1251\/revisions\/1253"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/americanchiropractors.org\/es\/wp-json\/wp\/v2\/media\/1252"}],"wp:attachment":[{"href":"https:\/\/americanchiropractors.org\/es\/wp-json\/wp\/v2\/media?parent=1251"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/americanchiropractors.org\/es\/wp-json\/wp\/v2\/categories?post=1251"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/americanchiropractors.org\/es\/wp-json\/wp\/v2\/tags?post=1251"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Home Insurance<\/h2>\n
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Renters Insurance<\/h2>\n
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Umbrella Insurance<\/h2>\n
Life Insurance<\/h2>\n
Term life insurance<\/h3>\n
Permanent life insurance<\/h3>\n
Health Insurance<\/h2>\n
Disability Insurance<\/h2>\n
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Long-Term Care Insurance<\/h2>\n