types of insurance you need by your 30s

So, you’re in your thirties and things are changing. Your single life is coming to an end and marriage is on the horizon. Next will be a house and children. With these life milestones comes new levels of responsibility- financial responsibility. We’ve put together a list of the types of insurances you will need by your 30’s to protect you financially.  

Health Insurance

Your 20’s were easy, you were healthy as can be and in great shape. But with age comes risk factors and responsibilities to your health in your 30’s. You will need health insurance in your 30’s if you don’t already have it. To can get annual physicals and seek medical attention when something arises. Medical bills can be very expensive and sink you deep into debt without insurance. So having medical insurance is a must.

Ask your employer if they offer health benefits or to see if you qualify for the Affordable Care Act. If not, you can visit your states’ healthcare marketplace to shop for a plan that works for your budget.  

health insurance

Renters’ Insurance

Your landlord may not require Renters’ Insurance. However you absolutely should cover yourself and your belongings with this insurance. Renters’ insurance covers damage from a fire, burglary, water damage- even identity theft. If damage occurs to your apartment, insurance will cover hotel costs. They will also replace your belongings. After all couch surfing in your 30’s isn’t so cool.

Most policies cover injured guests, incurred legal fees, and belongings away from the home.

Insurance can cost anywhere from $20-$30 a month and is well worth the investment and peace of mind. Make sure to get several quotes to compare and have your car insurance company provide a quote as they may offer a discount for grouping the insurances together.  

Homeowners’ Insurance

While homeowners insurance isn’t required by law your lender will typically require you to carry it to protect their investment. Homeowners’ insurance will protect and safeguard your finances. By repairing damages from a storm or fire with helping to cover costs of the rebuild. Replacing personal belongings inside and outside the house should your furniture go on fire. They will even cover stolen wedding rings. It will also cover personal liability if someone slips on ice in your driveway or gets bit by your dog, it will cover medical expenses and legal fees.

A homeowners policy is comprised of several different types of coverages. Some are that are standard and some that can be added on. What’s included in your standard coverage is dwelling protections, other structures protection, additional living expenses coverage, personal property coverage, liability coverage and medical payments coverage.

Optional coverage includes water backup, enhanced dwelling protection, and identity theft.

No homeowners insurance policies cover flooding, earthquakes, landslides, mold infestations, wear and tear, nuclear hazard and government action. You can however purchase separate flooding or earthquake insurance to add onto your policy. You should speak to an insurance agent about the various coverage types and what matches your lifestyle and circumstances best. Homeowners’ insurance is always a smart investment.

Car Insurance

If you are driving a car, you should already be insured. It is important you know about all the different types of insurances to add to your plan to financially protect you in every way.

  • Bodily Injury Liability covers medical expenses for injury or death for you or another driver operating your vehicle.
  • Property Damage Liability will reimburse for damages to another vehicle or property caused by your vehicle.
  • Collision reimburses damage to your car from a collision with another vehicle or object.  
  • Comprehensive is coverage against theft or damage to your vehicle other than a collision. For example a flood or a fire.
  • Glass Coverage covers windshield damage.
  • Gap Insurance covers the “gap” in what you owe and what the insurance coverage is. Based on the market value of your car if totaled or stolen.

Make sure when you are building your insurance plan, you are selecting the proper coverage for your property, liability and medical that will financially protect in the event of an accident.  

umbrella insurance

Umbrella Insurance

Umbrella insurance protects you above and beyond your auto policy and homeowners’ policy, it is an extra layer of protection. In order to qualify for umbrella insurance you will need to be carrying auto insurance and property insurance, typically homeowners’ insurance. If you own property with a trampoline, pool or a dog umbrella insurance would be a great financial investment for you.

Umbrella Insurance gives you extra liability coverage and legal defense costs, covers incidents outside main insurances, applies anywhere in the world and limits typically start at $1 million dollars and go up in million dollar increments giving you a nice cushion.

According to the Insurance Information Institute, an umbrella policy with $1 million in coverage costs about $150 to $300 per year. For the low investment this will give you huge protection and is a must for responsible homeowners.  

Life Insurance

You may be thinking it’s crazy to get life insurance in your 30’s, but it is actually the ideal time to secure a life insurance policy and lock in affordable pricing. The older you get, the more statistically inclined you are to be diagnosed with a disease. This can make you ineligible for a policy or can escalate the rates. It has been found that being in shape can help you save on life insurance.

Some of the benefits of life insurance are it will cover your burial expenses, financially protect your loved ones, protect your business, make sure your children live a life you wish to provide for them and to protect your loved ones from debt.

There are two types of life insurance- term life insurance which can be a 10, 20 or 30 year policy or permanent life insurance which provides coverage for a lifetime. Permanent life insurance may give you more peace of mind, but it is 5 to 20 times more expensive than term life insurance. For a free life insurance calculator click here and see what options work best with your budget.

Disability Insurance

You may be wondering why you would need disability insurance. If you were to get injured, have an illness such a diabetes or cancer and were unable to work disability insurance would pay a portion of your income. The definition of disabled varies from policy to policy whether being partially disabled or completely disabled.   

California, Hawaii, New Jersey, New York and Rhode Island are all states that require employers to offer short term disability to their employees. But short term disability may not be enough. You can supplement your short term coverage with a long term disability insurance plan. To get around a combined 75% of your annual salary. If you are self-employed you definitely need to look into getting disability insurance.   

There are many factors that are involved in pricing out disability insurance such as age, health, gender, smoker/non-smoker, occupation, income, definition of disabled and length of benefits. But typically, long term disability is around 1% to 3% of your annual salary.

 

Remember having insurance is all about protecting your finances and transferring your risk to another entity. Select the policies that work for you and your budget and seem of the utmost importance to you.