If there’s one thing that’s certain in life, it’s uncertainty!

Yes, death is certain for everyone, but who knows the day or the hour? One could argue that uncertainty makes life more interesting, true, but it can also have devastating consequences. If you blew all your savings today hoping to replace them with next month’s salary, what would happen if you encountered a financial emergency tomorrow?

If anything, uncertainty in life calls for proper financial planning and risk management. One way to do this is to purchase personal insurance.

However, there isn’t a one-size-fits-all personal insurance policy. Instead, there are different types of personal insurance coverage. It’s prudent to learn about these policies and identify the ones you need to buy.

Read on for a comprehensive guide.

Health Insurance

In the United States, the average daily cost of a hospital stay is a whopping $2,600. If you’re hospitalized for a week, you’d be staring at a $15,000 bill! It’s no wonder medical expenses are a leading cause of debt and bankruptcy for many Americans.

Thankfully, you can put the worry of hospital expenses behind you by purchasing health insurance. Yet, millions of Americans don’t have any form of health insurance. Don’t be like these people.

Although there are different types of health insurance, they all do one basic thing: to cover your hospital expenses. Terms of coverage will vary depending on the coverage provider, so be sure to research and read between the lines before signing up for any health insurance policy.

Disability Insurance

If you’re able-bodied, getting disabled isn’t something that crosses your mind often. But it can happen to you at any time. You could be involved in a road crash; you could injure yourself when playing your favorite sports; an ailment, such as a stroke, can render you disabled… in short, disability is a constant risk for everyone.

If you’re severely disabled, you might lose your ability to work and earn a living. How will you survive financially?

This is where disability insurance comes in. It offers economic protections to policyholders who’re no longer able to engage in productive work.

Auto Insurance

You don’t need auto insurance if you don’t have a car. But who doesn’t have a car? It’s one of the things any young adult buys once they start earning an income.

In most states, it’s a legal requirement to purchase car insurance. The coverage amounts are pre-determined, but you can get additional coverage depending on your needs.

However, you might be tempted to drive around without insurance, especially after your coverage has expired. Don’t make this mistake.

Driving without car insurance is not only an offense but can also get you in a lot of financial trouble. If you’re involved in an accident and you’re the party at fault, the other party can sue you to recover compensation for the losses. Without car insurance which covers your liabilities, you’ll have to dig into your pockets to pay the claimant.

Having basic auto insurance is okay, but if you can afford it, it’s advisable to add to it so that you have full coverage. Get collision and comprehensive insurance (pays for damage to your own car).

Getting disability coverage is especially important if you’re a driver since you’re at a higher risk of being in a road accident that can lead to your disability.

Home Insurance

64 percent of Americans are homeowners. So, it’s only natural that you also desire to own a home sooner or later.

If that time has come, one of the things you should purchase is homeowners’ insurance. It protects your home and belongings in the event of burglary or damage. (Not all kinds of damage are covered in a basic home insurance policy).

If you’re buying your home through a mortgage, getting home insurance is a must before the loan can be approved. But if you’re buying it in cash, you might not see an immediate need to get home insurance. That would be a big mistake.

Approach an insurance agency like LoPriore Insurance Agency and get started on buying insurance for your home.

Renters’ Insurance

Just because you aren’t a homeowner yet doesn’t mean there’s no way to protect your belongings. The landlord might have property insurance to protect himself from loss in the event of property damage, but what about your stuff?

Enter renters’ insurance.

This policy covers theft, water damage, damage caused by certain natural disasters, and personal injuries that might occur in the home.

Life Insurance

Do you have financial dependents? If yes, get life insurance.

If you died today, people who depend on you for financial support will be left to fend for themselves. That won’t be the case if you had active life insurance, a policy that pays a specified amount of money to your beneficiaries.

Even if you don’t have any dependents right now, it’s still wise to buy life insurance if you can afford it. You might get married or adopt a child in the future. These will become your dependents.

There are two major types of life insurance: term life insurance and permanent life insurance. Term life covers you for a specific period of time while permanent life insurance doesn’t expire until your death.

Pet Insurance

America is a nation of pet lovers.

If you’re a pet owner or parent, you know the amount of care that comes along with your pet. A routine vet visit can set you back about $500! And let’s not talk about the cost of treating a sick or injured pet.

Pet insurance is a must-have. It takes care of all the expenses related to keeping your pet healthy at the vet.

Personal Insurance Coverage Is Essential

Personal insurance doesn’t do away with life’s uncertainties. But it does ensure you’re financially prepared to face some of those uncertainties. Purchasing the different types of personal insurance policies you need is a smart financial move.

Keep tabs on our blog for more life advice and tips.