Most people know that they need insurance- but what kind of insurance do you need? There are a variety of different types of insurance, and it can be confusing to figure out which ones you need and which ones you don’t.

In this article, we will discuss the five main types of insurance that everyone should have: life, health, car, homeowners, and long-term disability. Each type of insurance has its own specific benefits, so it’s important to understand what each one covers. Let’s take a closer look at each type of insurance below.

Life insurance

Life insurance is mainly meant to financially cover your loved ones if the policyholder were to die. It is important to buy a policy that will adequately make up for the loss of income and potential financial hardships your family would face without you.

Health insurance

Health insurance is important because it helps cover the cost of medical care. Depending on your plan, you can get coverage for doctor’s visits, hospital stays, medication, and more. It’s also important to make sure that your policy has adequate coverage in case of an accident or illness, as medical bills can be extremely expensive.

Health insurance is essential because even one simple check-up can cost hundreds! Investing in even a simple health insurance plan will save a lot of money in the long run, especially if anything serious were to happen to the policyholder.

Car insurance

Auto insurance is required by law in most places, but even if it’s not required where you live, it is still essential if you own a car because getting in an accident could potentially end up costing everything you own depending on the severity of the damage. Paying for a basic car insurance policy each month could (and will most likely) end up saving you thousands in the long run.

Car insurance helps protect you if you’re involved in a car accident. Depending on your policy, it can cover the cost of repairs to your vehicle, medical bills, and any damages caused by the accident. It’s important to make sure that you have enough coverage so that you’re not left with a huge bill if something were to happen.

Homeowner’s or Renter’s insurance

Whether you’re a homeowner or you’re renting, having a backup for your home and its contents if your home were to burn down, flood, or be broken into can provide you with a lot of peace of mind. Homeowners’ insurance can also help protect you in case someone is injured on your property or if you’re sued.

Long-term disability insurance

The point of investing in long-term disability insurance is to still be able to support yourself financially if anything were to happen that would not allow you to make an income any longer. Most disability insurance will provide up to 60% of the current income if anything were to happen that would disable the person investing in the plan. This type of insurance is similar to worker’s compensation, but it is worth investing in because it is not limited to injuries that happen at work.