Insurance may seem a nuisance, especially when you don’t need it. However, this is a misconception, and you are bound to notice the importance when you are in dire need. You could undertake certain measures to keep your loved ones, employees, and assets safe. However, you cannot stop the unexpected from happening hence why you need insurance. Although you might not regain what you previously had, insurance helps you recover and have a softer landing.
A fire that ravages your business premise or a terminal illness is unexpected. These and many other unforeseen events could leave you deep in debt if you don’t have anything to fall back on. Different insurance covers are available in the market to cater to your diverse needs. Here are some key insurance covers that you should consider buying.
Also Read: A Guide to Different Types of Insurances
1. Health insurance
In 2019, the American Journal of Public Health indicated that over 900 people filed for bankruptcy between 2013 and 2016 because of medical problems. These ranged from unsettled medical bills to income loss due to illness. From these statistics, it may be wise to obtain health insurance coverage.
Although most health insurance covers may be expensive, getting even a minimal policy is good. If you are an employer, consider getting insurance cover. It is crucial to sit down with a medical business consultant before going with one particular provider. Alternatively, as an employee, you can check with your trade union or association, and if they have a group cover, try getting it. Health coverage will keep you and your family cushioned in the eventuality of a chronic or terminal illness.
2. Life insurance
A life insurance cover enables your family to mourn properly after your demise by allowing them to cater to your funeral expenses. Funerals can be expensive, adding undue pressure to an already grieving family. Most importantly, this cover enables you to provide for your family even when you are no longer alive.
It will prove beneficial to your family, especially if you are the breadwinner. When you consider this policy, get one that will be about ten times your yearly income. This way, your family will be able to cover daily expenses in addition to the funeral expenses. In addition, the right life insurance will ensure those essential payments such as a mortgage, loans, taxes, and college costs are comfortably met by your family in your absence.
3. Auto insurance
You should never drive your car while uninsured. Apart from it being illegal, driving around with no auto insurance is also likely to cost you dearly in terms of claims. For example, say you are involved in an accident; it will be costly to repair any damages out of your pocket. Apart from being involved in a minor accident, you may be in a horrible car accident. In such a case, you may not be in a position to pay for medical care and damage caused to your vehicle or the other party’s. This situation may be devastating to your family, especially financially.
When you have insured your car, you shield yourself and your family from further trauma. For instance, if you are the victim of a reckless truck driver, having a cover for this kind of accident will help you get compensation. Additionally, you can hire a reputable attorney to help you get rightfully compensated for your injuries.
There are various auto insurance types, from liability cover, collision coverage, and comprehensive coverage.
Carry out in-depth research before settling on an insurance policy or provider. It may be wise to work with an independent agent who will lay out everything for you and help set you up with the best covers.