While most people procrastinate over making financial decisions and consider insurance to be an unnecessary and added expense, it is important for every individual to address the risks to one’s assets and incomes for the safety of their family and themselves. Many people would prioritize retirement savings and other investments before tackling insurance. At the same time one cannot emphasize enough on the significance of an insurance cover in various facets of your life. Here is some basic information on the different types of covers that exist
1.Life Insurance
This is probably the least popular type of cover but is as important. A life insurance policy will protect your family from any potential loss of income from your death. While this isn’t a very encouraging thought, the fact of the matter is that it is a practical cover to consider.
Most individuals especially the male members of the family have a number of dependants in the form of parents, spouses and children who are financially dependent on them. It is important for you to make financial decisions that do not jeopardize their lifestyle in case of your unfortunate and untimely death.
2.Health Insurance
While this cover comes in many forms, it simple terms it covers a range of your medical expenses for a variety of health related issues that you may experience in your life time. You can either opt for an individual cover or a group cover.
Group covers are typically offered by your work place where the risks and costs are shared among a group, which means it is more cost effective for employees since it covers more health related incidents and conditions.
At the same time you can also opt for an individual health cover for yourself and your family in case you don’t have an employer or you work on a part time or freelance basis. In this case you will have to bear the risk and the costs of the premium on your own.
3.House Insurance
If you own a property of your own in the form of a condo, town home or even a mobile home it is recommended that you purchase a home insurance. Most of the times it is a mandatory requirement to get your house insured especially if you are applying for a loan towards its purchase.
Insurance for your home financially protects it from damages such as fire and other natural disasters.
4.Car Insurance
This is among the most popularly purchased insurance covers. This is the case because it is mandatory is most parts of the world. It is a must to have car insurance if you wish to register your car or have it inspected. Most countries expect you to have a minimum coverage for your car to protect third party members in case of an accident.
In addition to this, ask your insurance agent to prime you other covers such as disability insurance, credit card protection insurance, casualty insurance, and crime insurance which may protect you from other unforeseen and unfortunate events in your life.
