Just because you eat veggies and hit the gym regularly doesn't mean you're immune to an illness, or won't have an accident.
Everyone requires medical help at some point and if you don't have insurance, the resulting bill is going to be painful. Deliver a baby -- without complications --and expect to fork over an average of $10,000, says Matt Tassey, former chairman of the Life and Health Insurance Foundation for Education (LIFE). Get diagnosed with cancer and the expenses can go into the million-dollar range, says Lorne Zalesin, CEO of MyInsuranceExpert.com, which offers free quotes for individual health-insurance policies.
If your employer doesn't offer coverage in a group plan, look into an individual policy. Just be aware that private health insurance typically requires holders to pay higher premiums than they would with a group plan. And coverage may be more limited. To find the right individual plan, visit your state's insurance department web site, which often lists area insurance providers, and web sites like eHealthInsurance.com and MyInsuranceExpert.com for free quotes.
Visit our worksheet for more on choosing the best health plan.
Disability Insurance
Few people like to imagine the worst-case scenario, but Scott Simmonds, a Saco, Maine-based insurance consultant, makes a practice of it. He knows that one major accident could keep a person out of work for months or even years. Even worse: those without disability insurance could face bankruptcy. (Even though Simmonds doesn't sell disability insurance, he still recommends it.)
Disability insurance replaces a portion of up to 60% or 70% of lost income if the policyholder can't work due to an illness or injury. Often times, companies pay for employees disability insurance, or offer it as a voluntary benefit that employees pay for. Individuals can also buy their own policy, although the premiums will cost around 15% more, says Simmonds.
Shop around carefully. These policies are very complicated, can include many caveats, such as what qualifies as a disability, and can be hard to land on your own. Also, costs will vary based on an individual's income and type of coverage. If your employer doesn t offer adequate coverage, contact independent insurance agents who can provide you with a range of policies, says Simmonds.
For more on disability insurance, read our story.
Auto Insurance
What good is a shiny, new sports car if a fender bender will put you in the poor house?
States require different minimum amounts of auto insurance, but it's not enough to take care of things when they really count. Every driver should invest a little extra in comprehensive and collision coverage, especially if their car is less than 10 years old, says Claire Wilkinson, vice president of global issues at the Insurance Information Institute. (For cars older than that, the cost of coverage can be more expensive than the car's value.) Comprehensive coverage protects a car from vandalism, natural disasters like a storm or a tree falling on it, and most other damages -- excluding collisions. That's where collision insurance comes in. It helps pay for repairs to or replacement of a car if it's involved in an accident with another vehicle.
Read our story here for more tips on determining the type of auto insurance you may need.
