Insurance is a near-ubiquitous financial institution. There are hundreds of kinds of specialist insurance that cover everything from animal attacks to tornado damage. Over the years, some types of insurance have emerged as being broadly beneficial – and therefore extremely popular. Here are four of the most common types of insurance available to people living in the United States.
Retirement Annuity
Retirement annuities are a kind of specialist insurance designed to help people ensure a regular income after they retire. Annuity buyers invest their pension savings. They are then guaranteed payment, even if they outlive the amount that they had in savings. Most modern annuity plans account for inflation in order to assure people that they will not be getting short-changed by flat rates if there are economic fluctuations- which, let’s face it, there usually is during the span of a human life.
Recently, more people have been buying annuities online. Don’t just rush into an online purchase. Most good insurance companies will talk to you extensively about your options before asking if you want to make any kind of plan. Always remember that an insurance company will give you better rates the less likely it is that they will have to payout.
Life
Life, unfortunately, is finite and fragile. Life insurance is sold to people worried that their death may leave partners and family members financially burdened. People that work dangerous jobs or have poor health often buy life insurance in order to feel like they can provide after their death. As with all insurance, the more likely the bank is to payout, the more they will request for payment.
Auto
There are, on average, 6 million automobile accidents in the United States every single year. As well as the obvious human toll of these accidents, the financial strain of a car crash would be intolerable for many people if they were not insured. Car insurance companies reward good drivers because they are less likely to have to pay out to safety-conscious people after preventable accidents. Car insurance is a legal necessity for any automobile driver and should be kept up to date.
Health
Perhaps the most important kind of insurance on this list is health insurance. Although health insurance is not necessary in countries with socialized, tax-funded healthcare, it is absolutely crucial in the United States. The US has a predominantly privatized healthcare system. This means that procedures must be paid for. If a person does not have health insurance, medical companies are within their rights to seek payment directly from a patient. In 2019, 92 percent of US citizens had some form of health insurance, according to the federal government. The remaining 8 percent have no access to healthcare unless they can pay extremely high prices or face legal action. Health insurance companies in the United States do offer relatively good rates – but these rates become far higher if a person has a long-term health condition or dangerous lifestyle. This makes insurance unaffordable for some poorer Americans.
