Five Types of Insurance You Never Heard of That are Worth Getting


Let’s not even go there when it comes to insurance. No, we don’t know everything there is to know about insurance. We can’t name all the many different types available; there are too many. Yes, we know there is more to insurance than life, vehicle, homeowners and health. And yes, we know that insurance is such a complex tool that we can never fully do it justice in trying to describe it and make it make sense. What we do know, however, is that most people are aware of very specific types of insurance, yet they’ve never heard of other types of insurance. With so many complex plans available, it’s not a surprise that many people have never heard of certain types of insurance that they actually need, and it’s just one of those things. Before you assume you are covered thoroughly, however, let us help you learn about some insurance policies you need, but that you’ve never heard of.

Loan Protection Insurance

What is this type of insurance? If you’ve never heard of loan protection insurance, you are not alone. Most people have never heard of this, and it’s because they don’t think they need it. It’s not something that’s advertised on a regular basis, and many people don’t  have it because they don’t know it exists. However, if more people knew it existed, they might have this type of policy in their own name. if you have a significant amount of debt and very little savings to your name, this is the insurance policy you should consider. This insurance policy is one that allows you to cover yourself and protect yourself in case anything ever happens to you and your job. For example, if you lose your income but you have this type of insurance coverage, it’s going to protect you from defaulting on your loans and other payments. This is something that will protect your credit score and help you continue to pay your credit cards, car payments and other loans even when you no longer have income coming in.

Umbrella Policies

Perhaps you’ve heard of this and perhaps you haven’t. Umbrella policies are like health insurance riders for your homeowners and car insurance. These are policies that help to cover you in case your policy doesn’t cover you enough. For example, do you have a homeowner’s insurance policy that does not cover flood insurance? If so, you might add an umbrella policy that does cover flood insurance so that in case anything ever happens to your home in inclement weather or your pipes burst and your home has water damage from a flood, you will be covered. These policies are available everywhere car and homeowner’s insurance is offered, and it’s not difficult to add them to your policy. Nor is this type of coverage something you should ignore. We recommend you use this coverage so that you can protect yourself at all times.

Gap Insurance

Did you know that your vehicle insurance might not cover the full price of your vehicle in an accident? Here’s the deal; your policy will cover your car based on what it is worth, but nothing more. If you owe more on the car than it is worth, you might end up stuck with a policy that will not cover the cost of your vehicle in an accident where it is completely destroyed. What does this mean? This means that if your car is worth $20,000 and you are in an accident, your car is totaled and your insurance will only pay what it’s worth yet you owe $25,000 on the car, you will end up still paying for that car even though you don’t drive it anymore. What’s bad about this is that you might not be able to afford a new car while you still owe on one you’re no longer capable of driving. Get the Gap insurance; it’s worth it.

Long-Term Care Insurance

People have heard of this insurance, but most of them assume they do not need this policy. Here’s why most people don’t assume they need this policy; I’m 31, incredibly healthy, we have nice retirement accounts already and we are going to have a good retirement and a nice little life – I don’t need this kind of insurance. It’s paying for nothing. Wrong; I do need this insurance. I’m 31. I don’t know if I’ll be healthy forever – even if everyone in my family is healthy and lives well into their late 90s/early 100s still looking 60 and acting 40. I don’t know what might happen to me as I age, and I certainly do not want to end up in poor health in need of constant care and leave that expense (up to $250 per day!) to my children or my husband, so I have long-term care insurance. You should, too. It’s a small fee to pay now for a lifetime of stress-free worry. This policy, should you ever need it, will reimburse you for a certain percentage of your daily care if something of that nature is needed later in life. And there is no reason you can’t get it now, even if you are older than I.

Disability Insurance

You work, and you get paid. That’s  how life works. But if something happens to you and you can’t work anymore, what are you supposed to do? For example, I write. I work from home and I depend largely on my hands to allow me to type. The topic of disability insurance came up last week when our new dog attacked our cat and me in the process and left my hand swollen and damaged, and I was unable to move it for several days. It was at that point we began researching disability insurance since it’s in place to help you with your finances in the instance something happens and you are unable to work. The purpose is to protect you when the unfortunate occurs, and everyone should consider this insurance policy in their own household.

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