Insurance is one of those boring things that people don’t like to think about that much. Everybody knows they need it but it’s a job that gets put aside for another day. But if you don’t have the right insurance, you could find yourself in a difficult position later on. These are the types of insurance that everybody needs if they want to avoid financial problems. 

Life Insurance

People think life insurance is something that you don’t need to worry about until you get older, but that’s not the case at all. Life insurance is there to protect against disasters and if something happens to you and you don’t have cover, it leaves your family in a tough spot. Once you add up the cost of things like headstones by Memorials.com and funeral services etc. it gets expensive fast. Without insurance in place, your family will be burdened with the cost and that can leave them hurting financially during an already difficult time. Consider the long term financial impact of losing the income of somebody in the household. Having a good life insurance policy in place gives you peace of mind because you know that your family will be looked after if something happens to you. 

Auto Insurance

Texas law requires you to have at least $30,000 of coverage for injuries per person, up to a total of $60,000 per accident, and $25,000 of coverage for property damage. This is called 30/60/25 coverage, or more commonly, Liability Insurance. If you can afford it, you should take out a policy that gives you more than the minimum coverage. If you're trying to balance a budget and you're in an accident, it’s going to be hell trying to pay for the repairs out of pocket. Although it’s an extra monthly cost, having auto insurance can save you a lot of money if you're involved in an accident. It also prevents any disruption to your life because you can get your car fixed and back on the road quickly. But if you don’t have insurance and you can’t afford the repairs, you will be stuck with the bus until you secure the bag. 

Health Insurance

The cost of healthcare is on the rise and if you get sick without insurance, you can learn what real hurt is when you get that hospital bill. Many people have massive medical debts that they're struggling to pay off, and having the right insurance in place will help you manage some of those costs. However, the monthly premiums can be quite expensive, which is why a lot of people decide not to take out health insurance — damned if you do, damned if you don’t. It’s important that you weigh up the costs and consider how much you would spend if you didn’t have insurance. When looking at different plans, find a good balance between the affordability of the monthly payments and the level of coverage that you get, so you can avoid long and short term financial issues.

If you want to protect your finances, you should consider these 3 types of insurance.