Sometimes when beginning a budget, you forget items on your spreadsheet. While sometimes these items won’t be too costly and mess up your budget (like a $10 subscription to Netflix), other times it can majorly mess up your calculations.
Here, we’ve compiled the top four types of insurance you should be considering when budgeting. And if you don’t have one of these four kinds of insurance, then you should definitely begin looking into getting a policy for that area, because these are the essentials we’re talking about.
The number one insurance we think of when we hear the word is health insurance. That’s because of a few things, probably. First and foremost, we all value our health simply because we need it to live. If you are unhealthy and it becomes worse, well, you could die. It’s as simple as that. That’s why health insurance is the number one type of insurance sold and owned around the country. The other reason is because you are so aware of your health. If you are even a little sick and don’t have health insurance, you’ll wish you did have it.
Likely the next most common insurance people own is car insurance, and that’s because if you own a car, you’re legally required to have auto insurance. Without it, you risk being involved in a car accident and being at fault, which means you have to pay for the damages done. Rather than have that happen, you should be much more content with paying for monthly auto insurance in the case that it does happen so that you aren’t the one footing the bills.
This is mostly for your personal property being stolen if you live in an apartment. And if you own a house, well, you don’t want anything to happen to your house itself, so you naturally insure it. Considering people pretty much live in one or the other, it’s pretty much a given that mostly everyone will own this type of insurance.
This insurance is actually not as widely held as the others simply because it doesn’t affect the person themselves. So, while other insurances protect you and your property, life insurance helps to protect your family, kids, other dependents, or cosigners. Regardless of the fact that it helps others besides yourself in the scenario that you die, this is the insurance that everyone absolutely should have in order to help out their loved ones following your death.