Blog

June 28 is National Insurance Awareness Day, making it the perfect time to review your coverage and ensure you’re financially protected from life’s unexpected moments. But with so many options, which types of insurance do you really need? Is there coverage you should have for your beyond your own personal health insurance?

What is Insurance?

Insurance is a contract that provides protection to you, your loved ones, and selected assets like your car or home. The contract is between you and an insurance company, where all the details of your protection are outlined in the policy. These details include who or what is covered by the contract, the circumstances in which the payment will be issued, as well as who or what is covered by the policy and how much money will be received.

You’ll more than likely make monthly or annual payments on your insurance policies, which are called premiums. These payments keep your policy active and ensure that you will be covered for what is included within your policy. Health insurance may come out of your paycheck through your employer, while something like homeowners or renters insurance may be included in your monthly mortgage or rent payment.

Types of Insurance

Here are six essential types of insurance coverage most people carry, or should at least consider, based on their life stage and situation.

1. Health Insurance

Medical emergencies can happen in the blink of an eye, and they can quickly become financial emergencies if you’re not insured. Whether you’re covered through an employer, the Affordable Care Act (ACA) Health Insurance Marketplace, or a private plan, health insurance is foundational to your physical and financial well-being.

Tip: American Heritage partners with eHealth to help members find health plans that fit their budget and needs. Get a free comparison with top carriers and make an informed choice.

2. Life Insurance

Life insurance protects your loved ones financially if something happens to you. Whether you’re covering a mortgage, childcare, or college tuition, a policy helps ensure your family can maintain their quality of life.

• Term life insurance is affordable and great for temporary needs like raising children or paying off a home.
• Whole life insurance builds cash value over time and offers permanent protection.

Tip: American Heritage offers both term and whole life insurance policies at discounted rates. Call 215.969.2967 to schedule a personal consultation with a licensed expert.

3. Disability Insurance

Could your finances survive a loss of income due to an illness or injury? Disability insurance replaces a portion of your income so you can keep paying your bills even if you can’t work.

Tip: If your employer doesn’t offer disability coverage, consider a private plan to supplement your income in case of a long-term illness or accident.

4. Homeowners or Renters Insurance

Your home is likely your biggest investment. Homeowners insurance covers structural damage, personal property, and liability claims. Renters insurance protects your belongings and personal liability if you’re leasing.

It’s crucial to note the difference between homeowners insurance and mortgage insurance. Homeowners insurance protects any damage to your home or personal property, while mortgage insurance protects your lender in the event you default on loan payments. If you place less than a 20% down payment on your home, mortgage insurance will be a piece of your monthly mortgage payment until that 20% is met.

Tip: As an American Heritage member, you can save on home insurance through our partnership with TruStage® and Liberty Mutual. Get a free quote online or call 888.380.9287.

5. Automobile Insurance

From everyday commutes to summer road trips, car insurance is required in most states and essential for protecting your finances in the event of an accident. Nearly every state requires car liability insurance as part of your auto policy, and the same is typically true for motorcycle or RV insurance.

You also may want to consider Uninsured Motorist Insurance. This type of coverage will protect you and your passengers if you are harmed in an accident by an uninsured driver or are the victim of a hit-and-run incident. Uninsured Motorist Insurance generally covers both bodily injury and damage sustained to your vehicle.

Tip: Through our TruStage® Auto Insurance program, American Heritage members get access to customized, affordable policies. Plus, ask us about GAP insurance and Mechanical Breakdown Protection to further safeguard your vehicle investment.

6. Long-Term Care Insurance

As we age, our potential need for long-term care grows. This coverage helps pay for services like in-home care, assisted living, or nursing homes, services not typically covered by health insurance. While this type of insurance may not be needed immediately, be sure to reconsider it as you regularly check in on your coverage.

Tip: American Heritage can help with long-term care insurance and hybrid policy options. Call 215.969.2967 to explore coverage that suits your future needs.

Other Kinds of Insurance

While these six types are some of the most common and important types of insurance, there are lots of other aspects of your life you may want to insure. This could include your business if you’re an entrepreneur, your pet, or even jewelry. Work with your insurance provider to go over the details of adding these elements into your policy or a new policy. If you’re comfortable with the deductible and want to be sure you’re covered, chances are it will be worth it!

Bonus Tip: Review and Adjust Regularly

Life changes, and your insurance should, too. Whether you’ve moved, welcomed a baby, started a new job, or bought a car, take a moment to review your coverage at least once a year. National Insurance Awareness Day is a great time to do so.

Protect What Matters with American Heritage

As your trusted financial partner, American Heritage Credit Union is here to help you make informed decisions and get the coverage that fits your lifestyle. From health and life to auto and home, we connect you with affordable, dependable insurance solutions tailored to your needs.

Ready to review your insurance policies? Whether you need to protect your home, your family, or your future income, we’re here to help. Explore insurance options with American Heritage Credit Union today and feel confident in your financial safety net.