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  • Writer's picturejohnmarchetti00

Here Are 10 Types of Insurance You May Not Have But Need

1. Life insurance

Life insurance is something to consider if you have other people who depend on your income, such as a spouse or children. This policy is vital if you have large financial commitments such as a mortgage, child education expenses, or any major debt. Sometimes you even need a policy if you're getting a small business loan.

The purpose of life insurance is to provide a lump sum (and usually tax-free) payment to your dependents in the event of your death. How much life insurance you buy is a personal decision. Generally speaking, it depends on the number of years of income you want to cover for your household after you've passed away.

The two most popular insurance products you'll come across are term life insurance and whole life insurance:

Term life insurance

Term life insurance, as the name indicates, only covers you for a specific term or a number of years (e.g., 10, 20, or 30 years). As long as you pay your premiums and keep your policy active, your beneficiaries should get a lump sum in the event of your death.

If you outlive your policy term, the coverage expires, and you can either renew (if offered) or apply for a new policy. The premiums can be affordable, but they get more expensive as you get older.

Whole life insurance

Whole life insurance coverage lasts your entire lifetime as long as you keep up with your premium payments. It may also offer cash value benefits like a form of savings or investment account associated with it. Over time you may get money credited to you. While this type of life insurance sounds attractive, it is also substantially more expensive.

2. Long-Term Disability Insurance

This insurance covers you by replacing your income if you're unable to work due to a permanent or temporary disability. Regardless of whether you have dependents or not, if you have monthly living expenses, then it's a good idea to consider getting disability insurance.

What about short-term disability insurance? Well, if you have a fully-funded emergency fund, then it could cover you if you can't work for a little while but it may not be enough. Adding on short-term disability might not be a bad idea depending on the cost — especially if your employer offers it at a low cost or free. It can help you keep your emergency savings intact in exchange for the monthly premium you pay for coverage.

3. Renters Insurance

If you're renting, you're not responsible for the building itself or major repairs. That's your landlord's responsibility. That being said, you definitely want to consider getting renters insurance to cover your valuables within your home.

Renters insurance protects you if your belongings get damaged by flooding, fire, or in the event that your home is broken into. This is also why it's a good idea to keep an inventory of your stuff — like your expensive electronics or musical instruments — to know how much protection you actually need so you're not overpaying.

Your electronics and other valuables are the things that your renters' insurance would cover. Renters insurance also covers items stolen from your vehicle, even if it's parked away from home.

4. Personal Article Insurance

Do you have an expensive engagement ring or wedding ring set? An expensive watch? A laptop you take with you everywhere? The costs of replacing items like this can be really expensive. If you have any personal items that are of value and you often have them outside of your home, you should definitely consider insuring them through a personal articles policy.

5. Pet Insurance

60% of Americans have a pet of some kind, and many times people don't consider the associated medical costs with bringing home a pet. Pet parents should expect at least one $2,000 to $4,000 emergency vet bill during their pet's lifetime, according to the ASPCA.

Pet insurance can save you a lot of money if your pet needs major surgery or has expensive medical care, so it is definitely something to consider. Talk to your vet to see which policies are accepted at their office before buying any coverage.

6. Homeowners Insurance

Financial institutions require you to have homeowners insurance. However, you absolutely should have homeowners insurance even if you own your home outright. Homeowners insurance protects you if your home is damaged or destroyed.

This policy includes dwelling insurance, which covers the amount it would take to rebuild your home. Homeowners insurance can cover your personal belongings and include liability insurance if someone were accidentally injured on your property.

Review your policy thoroughly to ensure you have the correct types of insurance in place. For example, flood insurance is excluded from most homeowners insurance policies. Invest in a flood insurance policy to prevent major expenses in the event of a flood.

Other types of insurance, such as earthquake coverage may not be included either. You should speak with your agent to ensure you are properly protected. And be sure to explore ideas to potentially lower your homeowner's insurance cost without sacrificing coverage.

7. Identify theft protection

Over 33% of adults in the United States have been victims of identity theft. Identity theft is when someone uses your personally identifying information to commit fraud or criminal acts. There are various types of identity theft, such as:

  • Bank account theft

  • Tax identity theft

  • Medical identity theft

  • Criminal identity theft

Identity theft insurance protects you by covering the costs of identity theft. This insurance can save you hundreds to thousands of dollars along with countless hours fixing your identity theft case.

8. Long-term care insurance

One of the most essential types of insurance is long-term care insurance. None of us want to think about not being able to take care of ourselves, but we need to prepare in advance. Health insurance does not cover the types of services that long-term insurance covers. This policy covers costs such as assistance with daily activities and if you have a chronic medical condition.

For instance, if you were to need help bathing, using the restroom, etc., this would be covered by the policy. It's important to purchase long-term insurance sooner than later because it's one of the types of insurance you may not qualify for once you have a condition.

9. Umbrella policy

Depending on your situation and the protection you desire, you may want to purchase an Umbrella insurance policy. This policy is a personal liability policy that protects you if the costs are more than your homeowners and auto insurance coverage.

For instance, if the cost of the incident were $25,000, and your policy only covered $15,000, then the Umbrella insurance would cover the remaining $10,000 of expenses.

10. Dental Insurance

Dental insurance is one of those insurance types people don't think about until they are in pain. If you have a history of dental work or have young kids with growing teeth, dental insurance is certainly worth consideration. Even if only for preventative care.

Further contact Monarch Benefits Advisors for all your life insurance questions. We help our customers every day by finding the best insurance policies that fit their needs.

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