Three types of insurance that are worth the money
Most people hold basic, necessary insurance policies like auto insurance, health insurance, life insurance, and long-term disability insurance. However, there are a vast array of ancillary insurance products to help make life’s unexpected hurdles more manageable.
After all, roughly 44 percent of Americans do not have enough money in savings to cover a $1,000 emergency. The average cost of a human emergency room visit is $2,500 if you don’t have insurance. In comparison, an emergency veterinary visit costs about $2,000.
Emergencies can be unavoidable and frightening, so preparing for the unexpected is a necessary step to ensure your financial goals stay on-track, even during a crisis. Here are three supplementary types of insurance that you may want to consider.
Pet insurance for your furry friend
It’s reported by the Independent Veterinary Practitioners Association that the price of veterinary care has increased nearly 60 percent over the past 10 years. Last year alone, Americans spent roughly $38 billion on veterinary visits for their pets. You might expect that regular and emergency vet visits are part of caring for your four-legged friend, but what you may not know is that even your smallest, slimiest family members can be covered by insurance.
There are three types of coverage available for pets: comprehensive (accident and illness), accident-only, and basic wellness care. While your location determines which types of pet insurance are available to you, comprehensive pet insurance is one of the most popular options. This type of insurance covers vet costs for illness, accidents and even breed-specific conditions. Owners of brachycephalic breeds—pugs, boxers, Frenchies, etc.—may especially be interested in purchasing comprehensive insurance, as these dogs have known chronic breathing issues that require expensive intervention.
According to The North American Pet Insurance Association, the average monthly comprehensive premium costs $53 for a dog and $32 for a cat. However, your plan’s annual limit, deductible, and reimbursement percentage all play a factor in premium costs.
Another thing to review when researching insurance plans for your pet is how coverage for chronic illness and cancers is handled. Many insurance companies require you to have insurance in place before the diagnoses of a chronic illness or cancer, otherwise treatment may not be covered. Additionally, it’s important to be mindful of your insurance coverage waiting period, which is the timeframe between the policy purchase and when you’re allowed to make your first claim.
Gap car insurance for your new ride
If you are in the market for a new ride, you’ll need to know about gap insurance. A new vehicle depreciates 10 percent of its value the minute it’s driven off the lot; cars lose their value the most in the first five years of ownership.
Gap insurance is an ancillary car insurance product that helps you pay off your auto loan if your vehicle is totaled, lost or stolen, and you are “upside down” on your loan. You’re considered upside down on your loan if your insurance appraises your car for less than what you’ve financed it for. This is also known as negative equity.
In 2024, Edmunds cited that nearly one in four people had negative equity when trading in their car for a new one. As the average auto loan has a 72-month term, it’s safe to say that if you’re financing your new vehicle, gap insurance is a necessity. Luckily, the average gap insurance premium is typically $30 per year when bundled with your existing car insurance—a small price to pay for peace of mind.
Critical illness insurance for life’s unexpected hurdles
If you’ve ever been surprised that a medical bill was not fully covered by medical insurance, you’re not alone. Many health plans require consumers to pay out-of-pocket deductibles before fully covering the cost of a treatment. That’s where critical illness insurance comes in; think of it as gap insurance for your body. This insurance covers the difference between your primary health insurance and out-of-pocket costs.
Critical illness covers unexpected health problems like heart attack, stroke, cancer, and organ failure. Typically, the insurance is distributed in one lump-sum payout when an approved claim is made. This money can be used for anything, from living expenses and medical bills, to loan payments.
This insurance plan is especially helpful for those who do not qualify for disability insurance, or those who are unable to work for a period of time due to illness. One of the greatest benefits of critical illness insurance is that there is no waiting period, in contrast to long-term disability plans that usually require a three-month waiting period.
The cost of this ancillary insurance product varies by your age, the amount of coverage you require, and whether you’re seeking to add cancer coverage. Monthly premiums range from $10 to $150, depending on coverage needs, so this insurance coverage is best for those with a family history of serious health conditions and those who don’t qualify for short-term disability.
While the best defense against life’s unexpected hurdles is a healthy emergency savings, these three insurance options could save you from painful bills and keep you on track to reaching your financial goals.
Empeople has a team of expert, licensed insurance agents who can help you decide which coverage is right for you. If you are interested in speaking with one of them, please give them a call at (844) 578-5566 or send them an email.
