5 Different Types of Insurance Policies & Coverage You Need | Mint

Everyone knows about car, health and life insurances, but did you know that there are actually many types of insurance that can help protect you and your family? In exchange for a premium paid by the insured on a regular basis, insurance companies guarantee compensation in the event of a specified loss or injury. Read on for information on insurances that are less well known than some of their counterparts.

1. Disability Insurance

Disability income insurance guarantees income in the unfortunate event that the insured becomes unable to perform their job by way of injury or illness.  This type of insurance pays a percentage of the insured’s salary, no more than 60 percent. Disability income insurance normally costs between one and three percent of the insured’s annual income before taxes.

2. Unemployment Insurance

Unemployment insurance pays the minimum on your bills if you are out of work. With this type of insurance, you don’t have to worry that you won’t be able to stay afloat financially if you lose your job for an extended period of time.

3. Critical Illness Insurance

Critical illness insurance pays the insured’s medical bills in the event of debilitating illnesses such as cancer, stroke or heart disease. This insurance will pay medical expenses not covered by your health insurance. Additionally, it will pay for illness-related expenses such as transportation to and from treatment.

4. Credit Card Insurance

Credit card insurance will pay your credit card bill when you cannot afford to do so. If you carry a high balance on your credit cards, it may be something to consider.

Insurance can be a lifesaver when unexpected emergencies create higher expenses or an income loss for families. Disability insurance, unemployment insurance, critical illness insurance and credit card insurance all have the potential to keep families from financial ruin.

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