As you go about your day-to-day routine, it’s hard to imagine something unexpected happening to either you or your loved ones. But, unfortunately, life is full of unforeseen circumstances which is why it’s important to protect the facets of your life that mean the most to you.
Personal insurance covers a very broad spectrum of assets, and you can decide what types of insurance plans are best for you. But the most important thing to remember is, whether you fully cover every item in your possession or simply choose one type of protection plan, having insurance can help you feel safe and secure in moments of uncertainty.
Continue reading to learn about the various types of personal insurance, what those policies cover, how much personal insurance generally costs and why it’s important to protect yourself and your family.
What Is Personal Insurance?
In its broadest definition, personal insurance is the protection of human life values against the risk of death, injury, illness or incidental expenses. Using the term “personal” distinguishes this type of coverage from commercial ones like policies that protect businesses, non-profit organizations and similar entities.
Who Needs Personal Insurance?
Because personal insurance is so broad and covers a large spectrum of assets, the needs of people vary depending on their personal circumstances and possessions. It’s fairly common to have even the most basic of insurance policies like life insurance — Forbes found that at least three in four American adults have some form of life insurance — but it’s important to evaluate what you personally need when making coverage decisions for yourself.
Here is a broad list of examples of people who should consider getting personal coverage:
- Anyone who lives on their own frequently needs homeowners, condo or renters insurance.
- Drivers are required to maintain their current state’s minimum levels of auto insurance.
- People who financially provide for others should consider life insurance.
- Most people can benefit from health, disability and long-term care insurance, even if they don’t see any potential medical threats or reasons to need protection.
What Types of Personal Insurance Policies Are There?
If you fell into any of the above categories, or simply want to know what your insurance options are, then you’ve come to the right place. Although several types of policies may benefit you, we’ve narrowed it down to four commonly purchased coverage plans:
Auto Insurance
People spend a lot of time in their vehicles. According to Ridester, the average American spends about 408 days of their life commuting to work or simply driving in general. That means it’s vital to protect your vehicle with auto insurance — even if you’re a safe driver. Whether it’s a little fender bender or a totaled vehicle, you can’t control the other people on the road or the weather conditions you’re driving in. With Bank Midwest auto insurance, you can easily file a car insurance claim after an accident, and we’ll help you take the right steps forward.
Home Insurance
For every type of natural disaster — like flooding, hurricanes, fires or tornadoes — and personal possessions being stolen or harmed, there’s home insurance. Standard homeowners insurance provides you with coverage to repair or replace your home and its contents in the event of damage. This broad insurance type is a great way to guarantee not only does your house has the necessary protection, but your valuable items do, too.
If you don’t own a home but you’re renting a space, then maybe it’s time to consider renters insurance. In many ways, this form of coverage acts in the same way as a homeowners plan, meaning it will protect your goods inside and outside the property in the case of damage or theft.
Life and Health Insurance
Regardless of every physical asset you and your family own, there’s nothing more important than your life. That’s why life and health insurance coverage is so vital. Life insurance is designed to help your family pay off debt, receive income and finance major goals — like college tuition or a new vehicle — in the event that you’re not here to assist them. This type of health plan can help you receive the peace of mind that the people you care the most about are taken care of, no matter what.
Similarly, health insurance helps you and your loved ones be able to receive the medical attention and care that you need at a lower out-of-pocket expense to you. If you’re not completely covered by a health care plan at your workplace, Bank Midwest has both critical illness policies and medigap options to fill in the gaps.
Long-term Care Insurance
Long-term care insurance
assists with finances that can come with age, injury, disability, illness or cognitive impairment. This type of insurance often covers home care, nursing home care, assisted living care, custodial care and any other type of daily living and personal needs that aging people may require.
As great as these benefits are, personal insurance does come at a cost. But, that cost may be lower than you’d expect.
Coverage Prices: How Much Does Personal Insurance Cost?
It’s a commonly known fact that insurance can get fairly expensive. Even with the Affordable Care Act available — a health care reform passed in 2010 that makes affordable health insurance available to more people.
But don’t be discouraged! Bank Midwest partners with you to find the best coverage solution that works for your budget and keeps you safe. There are several factors that impact the price of your insurance plans. Here are a few of those items:
- Your age.
- Your gender.
- The amount of coverage you have.
- Your deductibles.
- Your location.
- Dependents.
You may be surprised that, often, coverage plans are extremely affordable and protect you from astronomical expenses should something drastic and unexpected happen in the future.
The Importance of Personal Insurance
While each type of personal insurance coverage serves a unique purpose, they are all incredibly important. Overall, insurance plans help you protect your family, assets and property from financial risk or losses.
With personal insurance, you can receive the following benefits:
- Life insurance can assist your spouse and children from devastating payments or costs in the event that something happens to you and you’re unable to help them.
- Generally, the money from life insurance policies is passed along federal income tax-free, so your family should receive every penny that you left them.
- Health insurance steps in to cover some of the essential health benefits and costs that occur in your daily life, as well as potential emergencies that require higher payments.
- Often, you will pay less for covered in-network health care, even before you meet your deductible using a specified health insurance plan.
- Auto insurance helps in circumstances that are often out of your control, like an accident that was caused by someone else. This type of coverage can assist with costs for any injury and damage, depending on the plan.
- Car insurance can also cover some or all of your legal fees if you’re taken to court over an accident or cause a collision.
- Not only does home insurance protect your home and personal property, but it also provides liability coverage for legal actions that result from injuries or damage that occur on your property.
- Long-term care insurance gives your family peace of mind by providing comfortable and affordable living quarters and helping with daily activities and medical needs.
The list of personal insurance benefits and tips could go on and on, but we’ll leave it at this: Take care of yourself by choosing an insurance company that can give you affordable and extensive coverage — no matter what your needs are.
If you’re ready to find protection available to cover your personal safety and security needs, contact a Bank Midwest insurance agent to get started.
Request quotes online for homes, autos and recreational vehicles.
