Everyone knows about health insurance, car insurance, and life insurance; and for the most part, we think that's all the coverage we need.
What if I told you that there are several types of insurance you need that you don't know about, and they are just as critical to have as the insurance you do know about. Let’s examine a few and see how they may benefit you.
Not all of these are “weird,” per se, but many are far less common than they should be.
There is a ton of mystery around disability insurance, but to clear things up, I simply refer to it as paycheck insurance. The reason I prefer this term is that it gets straight to the point; there is no wondering about what the insurance will cover.
Usually, when people think about getting disability coverage, a ton of unrelated ideas come into their heads like, “Do I need to be disabled to qualify for this coverage?” or “Doesn't disability have something to do with social security?”
Disability insurance protects your paycheck in the event you become disabled from an accident or an illness.
These policies will, usually, cover you for up to 70% (depending on the company) of your monthly income if you were to become disabled.
While plenty of people wonder if disability insurance is even worth it. The truth is, that without this type of coverage, you are opening yourself and your family up for financial ruin.
Why You Need It
You might not be aware of this, but most income earners spend 65% to 75% of their regular cash flow.
This means that, on average, you only have 25% of your cash flow to deal with all sorts of things that could come up.
If you get sick and are unable to go back to work, how long will that 25% last?
You would need to cover:
- Your Rent/House Payment
- Car Payment/Insurance
- Utility Bills
- Cell Phone Bill
- Credit Card Payments
- Child Care
- Other living expenses
And, in all honesty, this is a very small list.
It's also easy to think that your workers' comp would cover you if you got hurt; however, most disabilities happen outside of work.
It gets worse: 90% of all disabilities are caused by illness, not accidents, which means that it doesn't matter what you do for a living.
If you have an income to protect, then you need a disability insurance policy to help get you through a drawn-out accident or illness.
Concealed Carry Insurance
Concealed Carry insurance is probably the one type of insurance that most people have never heard of, but they need the most if they own a firearm.
If you are like me, you grow tired of hearing all the stories about mass shootings and wonder what would happen if you found yourself in that situation. Would you be prepared?
While I never want to have to use my gun, I keep it on me either concealed or unconcealed whenever I leave my home. This is where concealed carry insurance, also known as self-defense insurance, comes into play.
Why You Need Self-Defense Insurance
Did you know that if you shoot someone or even stab someone in self-defense, that you can still be arrested?
Yep, regardless if you are defending yourself, you are going to be arrested and have to pay bail to get out of jail.
You are probably going to have to go to court and need an attorney. And guess what? Even if you are found not guilty, or it is proven you were protecting yourself, the family of the injured party can file a civil suit against you!
Concealed carry insurance would cover all these costs.
This insurance would send you the money to post your bail and the money to hire an attorney. They will also cover you for loss of work income due to being in jail or having to go to court. Best of all, they will be with you throughout the entire process.
A self-defense trial could cost you upwards to $100,000 when everything is said and done.
There is absolutely no reason to go without this coverage if you carry a concealed weapon. The rates are super affordable, and you can even add your spouse to the policy for a small additional fee.
Becoming a pet parent can be one of the scariest and the most fun thing you can do.
My first experience as a pet parent came from elementary school in the form of an iguana. I had to wear these super thick gloves so that his claws wouldn't scratch me, and it was my responsibility to clean his cage and make sure he got fed for the day.
However, in real life, your responsibilities are going to go a bit further than just making sure you clean up after your pet or that you feed them. When it comes to pets like cats and dogs, you will have personalities to deal with as well as accidents.
Just the other day, I was reading a post on Facebook about how someone had to give up their puppy because they couldn't afford its surgery. A different family adopted the pet and paid for the surgery, but this could have been avoided with pet insurance.
Why You Need It
When it comes to pet insurance or pet health insurance, accidents aren't the only thing you will need to deal with.
Sickness is a huge issue when it comes to our fur babies, and not having enough money to cover them if they get sick could turn into you having to put them down.
Pet insurance covers things like:
- Emergency Visits
- Hospitalization & Surgeries
- Rx Medications
- MRI, CAT and X-ray
- Specialist Care
- Rehabilitative Therapies
- Lab Tests
- Outpatient Care
- Medication injections
- Cancer Treatments
- Hereditary & Congenital Conditions
- Accident & Illness
- Exam Fees
- Alternative Therapies
- Chronic Conditions
The list can go on and on. Now, of course, this isn't the first thing that comes to your mind when you are looking for your pet; however, it needs to always be on your mind because these policies will not cover any pre-existing conditions.
So, if your cat has a chronic illness before you get them covered, the insurance company won't cover any treatments related to or caused by that illness.
According to Embrace, cat claims tend to be more expensive than dog claims, so having health insurance for your pet is critical.
If you have decided to start investing in real estate, there is going to come to a point where you will need landlord insurance.
Depending on the state that you live in, you might need some form of landlord insurance even to let someone rent out your basement. This type of insurance covers the physical building of your investment properties, specifically.
Since you won't be living in the building and will be renting it to someone else, you will need this coverage in place to protect your assets.
Why You Need It
When it comes to rental properties, outside of hoping you have a stable renter, you still have to worry about the destruction of your property.
Landlord insurance, also known as rental property insurance, will cover things like:
Coverage for property damage will cover the property if the real estate or furniture is damaged by:
- Natural Disaster
- Irresponsible Tenants
- Electric / Gas Malfunction
Lost Rental Income or Rental Default Insurance: If your property is put in a position to be uninhabitable from things like:
- A Sinkhole
- Rat Infestation
- Irresponsible Tenants
- Electric / Gas Malfunction
Your rental default insurance would cover the rent money that you would be missing out on if a renter was currently occupying the property.
This is a massive lifeline because no one wants to pay rent on a property they can't get any use out of.
Liability Protection: The liability protection part of the policy works as it does with a traditional homeowners insurance plan. It covers the medical or legal costs that might come if a tenant or visitor suffers an injury due to property maintenance issues such as:
- Icy Walkways
- Architectural Collapse
- Out-Of-Control Hive of Wasps
Keep in mind that if you rent your property to someone, they are responsible for their own renter's insurance. Your landlord insurance will not cover their personal property; it will only cover your items.
There is no need to put yourself in such a risky situation by not having some form of rental property insurance.
Sure, it's super fun taking vacations. When you travel inside the U.S., the last thing on your mind is all the different types of insurance you will need.
You know that no matter where you are, you will get proper medical care, and, more than likely, have insurance that's accepted by most hospitals. You probably already have car insurance, and if the trip is canceled… oh well, try for next year.
However, what happens when you’re traveling overseas? What do you do if you get super sick from something you ate or need any type of medical assistance? What if you decide you want to drive during your stay? Where will you find car insurance?
This is why some sort of travel insurance coverage is essential when you travel abroad.
Why You Need It
When most of us think about travel insurance, we are thinking about trip cancellation coverage; however, that is probably not the only reason to have travel insurance.
Some of my friends travel out of the country all the time; and not only are they enjoying the sites, but some of them are also enjoying activities.
How do you handle missing international luggage? What would happen if you tumbled down a mountainside while skiing and needed an emergency helicopter to take you to a hospital?
There are five different areas of travel insurance:
Health & Medical: When it comes to the health and medical section of travel insurance you are going to be dealing with a few different options such as:
- Medical Insurance coverage for in-country access to medical and emergency facilities.
- Emergency Dental plans for broken teeth, infection, injury or lost fillings
- Repatriation of Remains to return your bodily remains in the event of death overseas.
- Medical Evacuation plans for transport to your hospital of choice around the world.
- AD&D life insurance in case of accidental death or loss of limbs or appendages.
Auto Insurance: Will cover the same things domestic auto insurance covers but for international rentals.
Cancellation / Interruption:
Cancellation coverage will provide reimbursements for prepaid or non-refundable expenses on a trip when the insured must cancel.
Your cancellation could be due to a health emergency, natural or weather disaster, terrorist event, as well as many other incidents.
Interruption coverage would pay for you to return to your trip if it was interrupted by a natural disaster, terrorist attack, or illness.
Cancel for any reason coverage or (CFAR) will cover up to 75% of the cost of your trip and allows you to cancel for any reason.
Baggage: This will cover lost, stolen, or damaged luggage and reimbursement for the value of lost, stolen, or damaged baggage.
Be sure to read the fine print and make sure the baggage coverage is adequate and that it covers your electronics.
There are other special types of coverage, like Kidnap and Ransom insurance.
This coverage is typically only used by the very wealthy or famous; or by companies with high-value employees traveling to certain kidnap-prone areas.
There is also cruise insurance because cruises usually make several international stops during the journey.
These journeys can sometimes last for months, and passengers have to travel to the port of embarkation throughout the US.
Cruise insurance is a pretty unique product in the industry with enhanced cancellation coverage.
In general, if you plan to travel outside of your native country, you probably should have some form or several forms of travel insurance to meet your needs.
If you didn't skip ahead in your reading, you probably know that your landlord's insurance policy will not cover your personal items if your apartment is destroyed.
And if you did skip ahead–well, now you know. In fact, if you don't have your own individual rental policy, you could be responsible for a ton of things outside your control.
Because of that same fact, there are now places that require you to purchase Renters Insurance before you can move into your rental.
While it might seem like another obstacle between you and moving into your new place, the truth is that it is beneficial, for both you and the landlord, if you are covered.
Why You Need It
Renters Insurance is the only way to protect yourself from losing everything if your apartment building or the rental home is damaged or destroyed by fire.
It covers you from things like:
- Loss Of Use: This is a type of coverage that will protect you if your rental can no longer be lived in. Once this happens, the insurance company will pay for your hotel room and some daily living expenses.
- Personal Property: If your apartment is destroyed by a covered loss, then the policy will cover your personal property items such as your furniture and electronics.
- Personal Liability: If a guest at your home gets hurt on your property and decides to file a lawsuit, the personal liability portion of a renters policy will cover you.
- Medical Bills (of others): If your covered pet bites someone, this portion of the policy would cover their medical bills since your pet bit them. Be sure to confirm if your dog breed is included with your policy.
As you can easily see, if you don't have Renters Insurance, you are opening yourself up for a world of hurt and disappointment. There is no reason to go without some form of Renters Insurance.
If a student has a medical or mental health issue, tuition refund insurance will provide them a safety net by reimbursing them for that semester.
Just think about it if you planned on being a computer programmer, but you were diagnosed with something that stopped you from being able to use your hands. You may have to drop out of school, and a tuition insurance plan would help reimburse any school-related costs.
Although this type of coverage has to be purchased on a “per semester” basis, it can protect you from losing a ton of money.
Why You Need It
There are many reasons why a student would need to drop out of school; however, these policies will only cover them if they drop out of school for:
- Illness or injury
- In the case of death
- Mental or psychological disorders (such as severe depression and anxiety, etc.)
- Any unexpected reason
Insurance for your tuition or your student's tuition isn't that expensive, especially when you think about the investment it's going to be protecting.
Now that you know the different types of insurance that you should have, it's time to take action.
While you might not be in a position where you need all these different types of insurance, you will probably need a few of them. Protecting yourself financially is never a bad thing, especially if you have a family.
And there are some policies you won't need until much later, such as long term care insurance, but it still pays to think about them now.
If you don't have any of the coverage we mentioned and don't know where to start, I would suggest you start with disability insurance.
Don't risk your paycheck. Because without it, you can't do much of anything else.