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Insurance offers protection and financial relief when unexpected events occur, including during winter months when icy roads and howling blizzards pose a risk of unforeseen accidents.
Health insurance, for example, provides coverage for doctor visits, hospitalization, surgery, slip-and-fall, or winter sports injuries, and more. Auto insurance covers costly repairs following a car accident.
What kind of insurance is essential for 2026 and beyond? Here’s what you need to know.
Health Insurance Covers Routine and Unexpected Medical Issues
The National Center for Health Statistics 2024 report showed about 27.2 million people of all ages in the U.S. did not have health insurance.
Without health insurance, medical bills can quickly pile up. Unexpected injuries, serious illnesses, and hospitalizations can cost hundreds and thousands of dollars.
Plus, routine visits for yearly physicals, mammograms, and other preventative services can help stave off catastrophic consequences if medical professionals catch certain health conditions early. However, checkups, X-rays, and other tests cost money for the uninsured.
Health insurance helps minimize out-of-pocket medical expenses and offers peace of mind that you can seek healthcare when you need it. If you’re working, many employers offer health insurance as a benefit with little or no out-of-pocket employee costs.
Individuals can also opt for private health insurance, and qualified government employees can receive federal health insurance. Qualifying individuals can obtain health insurance through government programs such as Medicare, Medicaid, or veterans’ benefits. Medicaid is income-based, among other requirements.
You and your family’s health is of utmost importance. Medical challenges can arise at any time. So, having some kind of health insurance is better than having none.
Auto Insurance Is a Must
Over 5.9 million police reported traffic crashes occurred in the U.S. in 2022, according to NHTSA’s 2022 Traffic Safety Report.
If you live in a snowy state, slippery roads and icy conditions during winter commutes or holiday travel pose a crash risk.
If you’re a licensed driver and have your own car, auto insurance is mandatory in every U.S. state except New Hampshire. An uninsured driver is responsible for any damage or injuries they cause in a motor vehicle accident.
Thankfully, auto insurance covers many accident-related costs, depending on policy terms. States with no-fault insurance require drivers to include personal injury protection (PIP) on their auto insurance policy. PIP coverage protects you, regardless of who’s at fault in an accident.
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- Medical bills for you and those covered under your policy
- Disability and rehab costs
- Accident-related lost wages
- Household services such as yardwork, cleaning, and childcare
- Death benefit to your survivors if you are in a fatal car accident
Other auto policy coverages include:
- Comprehensive and collision – Collision coverage pays for car repairs or will replace your vehicle after an accident, minus your deductible, regardless of who’s at fault. Comprehensive coverage pays for damage to your car caused by disasters other than collisions, such as hitting an animal, flooding, earthquakes, fire, falling objects (like a tree limb), theft, and vandalism.
- Uninsured/underinsured motorist – Uninsured and underinsured motorist coverage pays for damage to your vehicle, your injuries, passenger injuries, and medical bills if a driver does not have any or enough car insurance.
- Liability – Pays for property damages and injuries to others you cause if you’re at fault in an accident. This includes litigation costs, judgments, and settlements if someone sues you after an accident.
- Auto insurance premiums vary depending on your vehicle, driver age and experience, driving record, location, credit history, deductible, coverage limits, and more. It’s good to get several rate quotes before choosing an auto insurance carrier.
Life Insurance Supports Surviving Family Members
Life insurance provides financial security for your beneficiary, such as your spouse or child, upon your death.
Your beneficiary will receive the face value of the policy minus the cost of your funeral expenses. These proceeds can help replace your income, create generational wealth, and help relieve financial stress after you are gone.
There are two kinds of life insurance: term and permanent whole life. Term coverage has lower premiums and remains in force for a specific amount of time (such as 10 or 20 years). This means it can pay off a mortgage, cover college expenses, or provide income for your family.
Permanent whole life lasts a lifetime if you pay the premiums. Some policies accumulate cash value that you can borrow against or use to pay premiums. Some policies even pay dividends. Premium rates vary according to your age and health history. Many employers offer life insurance as a benefit.
Renter’s Insurance Replaces Personal Belongings
If you rent an apartment, house, or condo, renter’s insurance protects your personal belongings like clothing, furniture, jewelry, and more due to theft, fire, or another covered event.
It also offers liability coverage if someone sustains injuries in your home. If your home becomes unlivable due to a covered event, some policies also help pay for temporary living expenses. Premiums typically renew annually and vary according to your coverage amount.
Overall, health, auto, life, and renters’ insurance offer peace of mind and financial support for yourself or your loved ones during life’s unexpected events.