A Guide to Insurance

One thing that many people take for granted is their insurance. It’s something that they have but don’t think about it until they absolutely need it. Also, there are so many different types of insurance, including car, life, and home insurance among many others - it can become very overwhelming. The question is, how do you know what insurance you need? Also, you’re probably wondering where you can find the best insurance company. Our guide will help inform you about everything you need to know about insurance.
When you’re looking for insurance, Finance Guru is here to help.

What's Insurance?

Before we can move along with our guide, you need to learn what insurance is. It’s an offer from a company or the government to guarantee monetary compensation in times of a loss or damage.

The reason a company or the government can offer you money during your time of need is because you pay for your insurance each month. It offers peace of mind to the insurance holder that everything will be taken care of in case of an emergency.

Company-Offered Insurance

Many companies offer different types of insurance as a benefit for employees. The benefit of getting insurance through work is that it’s a way to get better deals than if you got insurance on your own. Also, the payments for this type of insurance are taken out of your paycheck before taxes. This is a great way to save a little more money on your coverage.

However, if you’re getting insurance through your work, you’re unable to pick the company and quality of the policy - you’re at the mercy of what they offer. Many companies do offer great life, health and dental insurance for their employees because it helps prevent turnover and it entices new talent to join the team.

Types of Insurance

Not all insurance is the same; there are many different types of insurance you can get for each aspect of your life. You’ll need to sign different policies for each of the different types of insurance. We’ll go over everything you need to know about each different type of insurance below.

Life Insurance

One of the most common type of insurance is life insurance. In fact, many companies offer it to their employees as a benefit. Life insurance offers a sum of money in the event the policy holder passes away. This gives the policy holder the peace of mind that their family would be taken care of if they were to die unexpectedly. Your spouse and dependents can also be claimed on your life insurance policy.

Auto Insurance

Unlike life insurance, auto insurance isn’t offered through an employer -  you’ll have to go through a company on your own. It’s also important to note that it’s illegal to drive without auto insurance, also known as car insurance.

Auto insurance helps the policy holder in the case of an accident. It covers the damages to your car as well as any injuries that may occur in the collision. Auto insurance covers cars, trucks, and motorcycles. Similarly, there’s boat insurance that offers the same protection for people who own watercraft.

Something many people don’t consider about auto insurance is who can drive a specific car. The insurance covers the car and the driver only if they’re specifically named on the insurance. Usually, people put their significant other and children on their insurance policy. If someone not on the policy is driving the car and is involved in an accident, they’re not covered under your insurance (they must have their own).

If you don’t drive often, you may want to consider pay-per-mile auto insurance from Metromile! Rather than pay a flat rate for car insurance, you pay for how often you use your car. This is a great option for people who live in huge metropolitan areas such as New York or Chicago.

Health/Medical Insurance

Health insurance, also known as medical insurance, is a type of insurance that can be offered at your work as well. It covers medical expenses that happen in a hospital and emergency room visits. It also covers regular checkups. The amount of money your health insurance covers depends on the quality of the policy. You can also cover your spouse and dependents on your health insurance.

Along with health insurance is vision insurance. Vision insurance has a similar style of coverage but is focused on your eyes. Anytime you need an eye exam, contacts/glasses, or eye surgery, your vision insurance has you covered. Many companies also offer vision insurance to their employees.

Travel Insurance

Everyone loves going on vacation, but did you know that having travel insurance will cover a lot of common problems that travelers face? This includes medical expenses, trip cancellations, and lost luggage. It also covers any problems or accidents that occur on the flight.

While many of the other insurances mentioned above are extremely important and even necessary, travel insurance is more of a luxury. However, if you plan on traveling a lot, especially for work, then you’ll want travel insurance to protect your possessions.

Homeowner’s/Renter’s Insurance

Your home is probably the most expensive purchase you’ll make in your life. That’s why homeowner’s insurance is incredibly important to protect your investment. Homeowner’s insurance covers any losses that can happen at home such as theft, fire, flood, or any other accident.

Renter’s insurance is the exact same but is geared towards renters rather than private homeowners. This is especially important because your neighbors are all in the same building. You have no control over what/when they’re cooking or how they treat their apartment. You want your possessions to be protected just in case.

Allstate is one of the my reputable home/renters insurance companies. You can check out their offers here and learn if they’re the right options for you!

Dental Insurance

Dental insurance is another type of insurance that can be offered by your employer. It covers everything associated with going to the dentist. This includes dental cleanings and surgeries. Much like life insurance, the amount of money covered is based on the quality of the policy. You’re also able to add your spouse and dependents onto your coverage.

Pet Insurance

You may also want to protect your pets with an insurance policy. That’s where pet insurance comes in - think of it like health insurance for your pets. It covers vet visits, surgeries, vaccinations and medication like heartworm pills.

Much like travel insurance, pet insurance isn’t necessary – it’s a luxury to have insurance for your pets. However, heartworm medication and vet visits are an inevitability when owning a pet. You may want this insurance to help cover the costs when they come up.

Disability Insurance

The purpose of disability insurance is to protect the policy holder from lost wages caused by disability or injury. There are two different types of disability insurance: short and long term. You’ll need to talk to your company’s HR department to see how much of your wages will be covered by the insurance plan.

Benefits of Getting Insurance

Many people don’t see the purpose of getting insurance because you’re paying for something you may not use. However, many of these types of insurance are necessary and even illegal not to have.

Also, peace of mind is a very powerful benefit that’s given to you with different insurance policies. Life and health insurance ensure that your loved ones are covered in case of your passing. Also, health, dental, and vision insurance cover major medical related bills that you may accrue. Pet insurance does that same thing for your furry friends.

You also have many major purchases that you’ll want to cover in case they get damaged. Auto, homeowner’s, and travel insurance cover some of the most expensive and important possessions you’ll have in your life. Needless to say, receiving compensation to purchase new possessions if they’re damaged or destroyed will help ease the sting of losing them in the first place.

Choosing an Insurance Company with Finance Guru

There are many companies that offer insurance. Many of these companies are household names: Geico, General, State Farm, Progressive, National Life, and Prudential, just to name a few.

The question is, how do you find the right insurance companies? You’re going to have to compare prices and coverage of the policies that you’re interested in and find one the meets all your needs. What better place to start than with Finance Guru? Put your zip code in our comparison tool and we’ll show you all the insurance opportunities in your area. We’ll make sure you’re happy with your insurance providers and their policies.

InsuranceLevon Mock