The 3 Types Of Insurance You Probably Don't Have - But Really Do Need

Insurance is one of those things people tend to buy only when they feel they really have to - which is why most people carry only car insurance and home insurance.  The former is required by law, and the latter is required by the mortgage company. Health insurance is another of those must haves, and most people acknowledge that life insurance is a good idea to purchase as well.  If these four are the most you've considered buying, it's time to expand your horizons.  These three insurance policies should be high on every financially responsible person's list.

Disability Income Insurance.  If you became disabled and couldn't work, how would you pay the bills?  Especially if you're the primary breadwinner in your household, this coverage is one you really need to have.  Some employers do provide a policy as part of the employee benefits package, but the coverage may be limited.  Disability Income Insurance will replace your income usually at a higher rate and for a longer period of time than the average company policy, and can mean the difference between keeping your family in your home and having to cut expenses drastically.  

Long-Term Care Insurance.  You have health insurance, so you assume that any illness or injury you have will take care of all the bills.  Unfortunately, that's not how it works.  While your health insurance will pay medical bills, there are an incredible list of costs associated with the need for long-term care.  That's where a long-term care insurance policy kicks in.  It will cover a variety of costs that fall outside the realm of health insurance, Medicare, or Medicaid, including in-home care for daily living assistance and more.  This insurance policy can ensure a good quality of life even when you face a long-term illness.

Umbrella Insurance.  Especially if you have a lot of assets to protect, an umbrella policy is the best way to make sure you're covered in this highly litigious society.  An umbrella policy adds liability insurance that goes above and beyond what you have already on your auto and home insurance policies. Umbrella policies usually start at $1 million, so if you have $500,000 in liability on the underlying home insurance policy, for example, your total available coverage is now $1.5 million.  Why do you need it?  If you're faced with a lawsuit claiming negligence, the costs can quickly rise.  Liability insurance will pay legal fees, cover settlements, and pay out any other associated costs.  These policies are incredibly affordable for the amount of coverage they provide - and can save you from financial devastation.

Contact a company like Farmers Insurance Group to learn more.