There are four types of insurance policies that are commonly recommended for a solid financial safety net:
- Life Insurance: This can be either traditional whole life or term life. Whole life insurance includes a death benefit and a cash value component, while term life covers you for a set period and is often the most affordable option.
- Health Insurance: It can be obtained through an employer, the federal health insurance marketplace, or directly from private insurance companies. Health insurance is crucial for protecting against catastrophic medical bills.
- Auto Insurance: This is legally required in most states and covers liability, personal injury protection (PIP), and potentially uninsured/underinsured motorist coverage. It can also include comprehensive and collision coverage for vehicle damage2.
- Long-Term Disability Insurance: This type of insurance protects your income in the event you become unable to work due to a disability.
These insurance types help protect you and your family from the financial fallout of unexpected events. The specific coverage and policies you need may vary based on your personal situation, such as your family structure, lifestyle, and employment benefits
