4 Types of Insurance Covers Everyone Should Have
When it comes to protecting your life, limbs, and assets, you cannot expect to have enough insurance. It is best to do everything you can do to cover yourself with different types of insurance policies. Your personal policy should be to be prepared for the unexpected at all times. Following this principle should help you get all the cover you are going to need.
Here are 4 types of insurance policies that you should use to cover different aspects of your life.
1. Automobile Insurance
If you have a vehicle, you should be choosing the best car insurance you can. There are so many reasons why it is not recommended to travel without insurance.
- It is illegal to travel without insurance. If you are caught with an expired insurance policy, you can expect a hefty penalty.
- The average loss per claim is in the thousands. If you are involved in a mishap, it can mean having to spend thousands out of your pocket.
It is also important to choose the right type of auto insurance to provide optimal protection. Some of the different types of insurance covers include:
- Comprehensive Cover: It can cover your own losses as well, including those not caused by a mishap such as fire, flood, and theft among others.
- Liability Cover: This policy covers the cost of damage to properties or injuries caused in a collision where you are held responsible.
- Collision Cover: Such a policy is going to cover the cost of repair or replacement if your vehicle gets damaged in a collision.
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2. Life Insurance
Whether you have a car or not, you must have a life insurance policy. The more you have, in terms of amount and numbers, the better it is. There are different types of life insurance policies, with term-insurance offering some of the highest covers.
Life insurance covers your life but helps protect the lifestyle and future of your family. In the unexpected case of your demise, your family will be provided with a lump sum amount or a regular income depending on the kind of policy you have.
Burial insurance is another form of life insurance that is particularly for seniors, covering funeral costs and end-of-life expenses. You can take a look at this article where the pros and cons and different types of burial insurance are well explained.
3. Health Insurance
The law will require you to have minimal health insurance cover. You should never go without getting health cover. Whether you will be getting the coverage under your employer’s insurance, the standard way or as part of another policy, make sure to evaluate your options and costs to make the right choice.
If you don’t have health insurance cover, any injury or illness can mean that you will have to bear the high medical costs yourself. Having a health insurance policy can take most of the financial burden off your shoulders.
4. Disability Insurance
Disability is one of the unexpected things in life and can affect people in one or the other form. Whether it is the result of a trauma, medical condition, or otherwise, having a disability insurance policy can go a long way in protecting your future life and help with any income replacement you may require. If you have a family, such a policy can also provide certain level of protection to them in terms of financial aid.
So make sure to have all these 4 types of insurance policies. This should help cover most of the uncertainty associated with life.