buying insurance is a way of risk management, paying a certain premium to the insurance company. when a contractually agreed possible accident is encountered, the economic losses suffered can be compensated by the insurance company.

some small partners may have had such an experience, when buying insurance is too expensive and troublesome, and as a result, they regret that they bought less when they made insurance claims. in the current era of ubiquitous risks, buying enough insurance is a reliable life guarantee for yourself and your family.

the u.s. insurance market is mature, and there are many insurance products, from auto insurance to medical insurance, from life insurance to home insurance, from accident insurance on the plane to various after-sales insurance attached when shopping... all risk can be measured in $$$.

choosing the right insurance can maximize the financial stability of a family, but some insurance is not necessarily worth spending money to invest.

the five most insurers you need to buy

Auto Insurance

car insurance, needless to say, almost everywhere in the united states has laws that require drivers to have insurance to get on the road. driving without buying insurance, or not enough insurance, in case of an accident, the medical expenses of the injury, the repair cost of the car, everything must be paid by yourself. if the responsibility is on one's own side, and others suffer some more serious permanent injuries, such as paralysis and disability, the amount of long-term medical expenses and other liability compensation is very high.

therefore, if you want to save the cost of car insurance, you can consider increasing the self-payment limit or driving an old car to buy only half insurance, but the amount of liability insurance must not be reduced, many professionals recommend to buy more than the total amount of liability insurance in their own net asset value. of course, small partners who have spare money to drive a new car should also consider collision insurance and comprehensive accident insurance, etc., if their car is damaged to repair, then insurance can also be reimbursed, reducing out-of-pocket expenses.

Health Insurance

the so-called "health is the greatest wealth of life", in the united states, medical insurance is also indispensable. most regular health insurance plans allow you to do regular physical check-ups and vaccinations for free or at a very low cost, and you can reimburse most of the medical expenses when you are in pain, so that you can afford it.

studies have said that the first major cause of bankruptcy in americans is the cost of medical care →_→

the medical cost in the united states is very expensive, seeing an ordinary family doctor will cost two or three hundred knives, if you have a blood test or do a special examination, casually it is hundreds, and it is more expensive to see a specialist; not to mention the cost of surgery and hospitalization, thousands of which are idle. ordinary working families, having a serious illness, are really not far from bankruptcy.

So even if health insurance itself is not cheap, many people would rather have a most basic insurance plan than nothing. Many young people in the United States can't afford regular medical premiums, so they buy a cheaper Short Term Health Insurance or Hospital Indemnity Insurance, at least in case they are unfortunate enough to have a serious illness, and they can also have insurance to help reimburse them.

Home Owner's/Renter's Insurance

In the United States, if you have a loan to buy a house, the bank will force you to buy Home Owner's Insurance home insurance, in case of fire and wind caused by the house damage, or the home is stolen and destroyed, or the homeowner is sued to compensate others, etc., the home insurance will pay the homeowner's losses, but also to ensure that the homeowner has the ability to continue to repay the loan.

even if there is no mandatory requirement, homeowners buying home insurance is a smart investment option. because in addition to the protection of the building of the house, home insurance usually also covers claims for the loss of personal belongings of the owner. for example, if your car is smashed and your laptop in your car is stolen, the comprehensive accident insurance of car insurance will only cover the cost of repairing the car, but the personal belongings such as laptops are not covered, while home insurance can cover this loss.

in addition, home insurance will usually cover the owner's liability insurance, such as if someone falls in your territory and is injured, the home insurance will reimburse medical and related expenses; or if you damage someone else's property and are sued, the cost of litigation and compensation can also be paid by home insurance.

however, homeowners should also note that general home insurance does not cover losses caused by natural disasters such as floods, earthquakes, landslides, etc., and if your home is located in a high-risk area where such natural disasters are frequent, it is best to consider purchasing additional insurance.

Disability Insurance

if there is an unexpected storm, if the accidental injury, serious illness, etc. lead to the inability to work without pay, it is likely to affect the normal life (including paying for daily expenses such as housing loans, utilities, etc.), and the purchase of disability insurance is to protect your income in another way when you lose the ability to work.

Although the social security system in the United States is relatively perfect, But Workers' Compensation only covers work-related injuries, Unemployment Regardless of this incapacity, application for Social Security Disability Insurance (SSDI) generally needs to wait at least 5 months, and the approval is very strict and easy to be rejected, not to mention that even if the application is successful, the average benefit in 2018 is $1197/month. Far from making up for normal income.

Disability insurance is mainly divided into Short-Term (short-term, referred to as STDI) and Long-Term (referred to as LTDI) two categories, most of which will be paid at about 60% of the pre-tax income, because individuals buy this insurance if the benefits are usually tax-free, so it is similar to the money actually received after the usual tax deduction.

Life Insurance

Death is not a cheap thing to do in the U.S., where the average cost of death is $11,618, compared to $7,360 for median out-of-pocket funeral expenses(including the cost of bequestage and cremation). If you are the main source of income for your family, then Touch Wood says that in case xxx, the family is likely to be in financial difficulty, and buying life insurance can give a protection to the family.

There are also many different types of life insurance, but the most basic can be divided into two categories: Term Life Insurance and Whole Life Insurance.

The so-called term life insurance is to provide insurance protection for the insured within the term specified in the insurance contract (usually ranging from 5-30 years), after which there is nothing; Whole life insurance, on the other hand, does not specify a period of time in the contract and will remain in effect until the death of the insured, and whole life insurance usually has the function of deposit investment, can accumulate cash value, and can also "borrow" the cash amount when you need it.