-
Life insurance provides money for your family if you die too soon.Select a life insurance policy based on your needs. Life insurance is one of the six basic types of insurance. You may only want a small policy to cover the cost of burial or need a large one to replace your income for your family if you die a premature death. Life insurance bases premiums on statistics that surround death. The older you are, the higher the premium because you're closer to dying. If you have an illness that might make you die sooner, the premium is higher or you might be uninsurable. Some policies increase in premium each year. Other policies have cash value from different investments. -
Cover the cost of an accident with auto insurance.Pay for the cost of an accident with auto insurance. Auto insurance has several parts. The comprehensive and collision part pays for the cost of damage to your car and has a deductible for each. The liability section pays the damage to the other person if you cause an accident. It might pay for bodily injury, property damage or both. -
Medical insurance doesn't always pay for the doctor.Look for co-pays and deductibles when you purchase medical insurance. Also, check to see if you have coverage for all illnesses. Some policies limit coverage for pre-existing conditions. Pre-existing conditions mean you've had these conditions before. They only include ongoing illnesses or problems. Medical insurance might pick up the cost of your doctor visits in addition to the cost of hospitalization. Some medical insurance policies also pay for prescription drugs. -
Buy homeowner's insurance in a high-risk area and you'll pay more. Many times the insurance for homeowners and renters is more expensive in areas prone to weather related problems or high crime rates. The homeowner policy covers the cost of damage to your property and home and includes a liability portion if someone injures himself on your property due to your neglect. Renter's insurance covers the same thing but doesn't cover the house itself.
-
Disability pays if you're injured and can't work.Provide a paycheck if you can't work because of illness or injury. Disability insurance replaces your paycheck in these cases. There is a period called an elimination period before the policy pays. Disability insurance that pays for 180 days but only requires a short elimination period is short-term disability. Long-term disability policies have high elimination periods but pay for years or your lifetime. Some policies state that you can't do any type of work and others say you must not be able to do your regular job. -
Long-term care policies cover the cost of nursing home care.Investigate the benefits of a long-term care policy. Either nursing home care and at home care, or both types of payment comes from these policies. You select a daily dollar amount that pays for your care if you no longer can perform the duties of daily living, like bathing or dressing. Today many policies offer variations in coverage and options. Some give discounts if both husband and wife buy a policy.
