Life is risky and there are several types of insurance you should have. Sometimes we forget we’re not invincible so we don’t take time to research the types of insurance that are available to us. However, I’ve composed a list of the types of insurance you should have.
1. Health Insurance
Health insurance is one of the most important types of insurance you should have. Find out what your employer covers when it comes to health insurance. If your employer doesn’t provide coverage or enough coverage, call your state/province’s health ministry and find out what you’re qualified for based on your income. Finally, if you still don’t have enough coverage then research different health insurance policies.
2. Life Insurance
Different to health insurance, life insurance ensures your family will be taken care of after you’ve passed away. Today, life insurance policies are affordable and usually don’t cost more than a few dollars per day. However, make sure not to pick a policy because it’s cheaper – know how much your family will be reimbursed and what the criteria is for your family to receive your life insurance.
3. Car Insurance
Car insurance is important because it’s illegal to drive without it. In addition, it’s important because if you’re in an accident and it’s your fault, your insurance company will reimburse the other driver(s). However, if you’re not covered, you will have to pay for damages out of your own pocket.
4. Home Insurance
Your house is one of your biggest assets but if anything were to ever happen to it, you would literally be screwed over. Do research on home insurance that covers as many things as possible. For example, find an insurance that covers the cost of natural disasters (i.e. floods, tornados, earthquakes, etc...) fires, robberies, etc... Although home insurance can be expensive it’s better to be safe than sorry.... or homeless.
5. Rental Insurance
Whenever you rent something (like a car when you’re on vacation) and you’re asked if you would like to pay an addition fee for insurance... say YES! Using the rental car example, it’s much cheaper to pay the insurance than having to pay for the full cost of the car out of your pocket for damages. Again, this is another case of better safe than sorry.
6. Credit Card Insurance
Consumer debt is rising in numbers – many people spend more than they can afford or use their credit cards as a means to survive. However, credit card companies are trying to help their customers out by offering insurance. If you enroll and pay the insurance every month (which is usually only a few dollars) your credit card company promises in the case in which you ever lose your job or take temporary leave from work for health issues and are not able to pay your credit card bill, to “pay the bill for you” (when you return to work you will be required to pay back the amount that was “covered”).
7. Unemployment Insurance (EI)
This type of insurance is mandatory and is automatically cut from every paycheck you make. Although it’s a nuisance now, in the case that you ever lose your job you will receive EI for a short period of time. EI is usually only enough to cover your expenses and it is only handed out for 6-9 months.
Insurance feels like another expense and the cost to have insurance definitely adds up. However, when you think about it you’re only paying a small fee monthly which is better compared to paying a large sum of money in the future in the case of an accident. What types of insurance do you recommend people have in life?