The purpose of insurance is to protect you against financial loss should high-value items become damaged, lost, or stolen. Insurance has been around for hundreds of years, and therefore as you’d expect, there is no limit to the things for which you can buy insurance policies. However, for the average person, there are only a few types of insurance that it is vital to hold policies for, and here are the top five insurance policies you should have in your life.
Homeowners and Contents Insurance
Contents Insurance (also known as Personal Property Coverage) covers everything inside your home and is essential for homeowners and renters alike. It doesn’t matter if you’re a homeowner or a tenant; you want to know that your home and its contents – your valued possessions, are protected. House insurance takes care of the physical building, so should damage occur, it can be repaired, ensuring that the building stays in sound condition. The level of protection you need is worked out based on the value of your possessions, so spend time looking at a couple of online calculators to be sure you get the best deal.
Vehicle Insurance
Your vehicle needs insurance of its own as it can not only spend a lot of time away from your home (and therefore doesn’t count under contents insurance). And it also covers you if you cause damage to another vehicle, person, or property with yours. Again, the best type of policy for you will depend on your situation. By checking out Progressive Insurance reviews, you can compare different policies and decide which one is best for you.
Travel insurance
Going on holiday is not supposed to be stressful, yet sometimes things happen to make it just that, so it’s essential to have travel insurance to mitigate that stress. Travel insurance can cover unexpected illness, forcing you to miss a flight or damaged luggage in transit. While insurance can’t stop these things from happening, it will save you from a financial headache.
NB; do be aware if you have a pre-existing medical condition, you will likely have to shop around for an insurer and need to pay more for coverage.
Life Insurance
No one likes to think about their mortality, but a far worse thought is that if the worst were to happen, you’re loved ones are left behind struggling financially while also grieving your loss. Life insurance allows you to leave a sum of money for your loved ones. It’s crucial if you have dependents that you would be leaving behind, such as children, and when they are minors, you can arrange for money to go into a trust fund.
Health Insurance
Getting ill can be very costly, and so it is vital to have health insurance. If you’re lucky enough to have it through your work, terrific; otherwise, you need to look at private insurance. It is costly, but finding yourself with a chronic illness or needing major surgery will cost far more.
