We know life itself needs insurance – just because of natural disasters and other things that can happen to us, but did you know that there is more to insurance than just life insurance? We do more than live and so other part of our existence and activities might also need insurance. Here are 4 types of insurance that most of us have or get, and if you don’t have all four and should, then consider fixing that sooner than later.
The biggest insurance we need, really everyone regardless of age, social class, country of residence, name, race, religion, job, affiliation, and whatever else you might think of, is life insurance. Everyone will make a graceful exit one of these days and nothing is as painful as leaving the very people we cared about when we were alive, in pain and financial distress from our demise. Knowing that your absence is already emotionally devastating should mean that we should plan ahead to avoid the financial difficulties most families face when someone close and near passes on.
Getting life insurance is not only smart but it’s also right to make sure that people you live behind – parents, spouses, kids, other relatives, etc – are okay and well-taken care of financially. It sounds sad to say but if a family is going to lose a mom or dad, can they at least gain some financial benefit from that loss. It might sound cold but it’s hard reality. So, don’t bypass getting a life insurance as it is one of the most critical things you have when making other financial plans, or setting financial goals for yourself.
If you plan on going out of town or out of the country, get a travel insurance. You can even get one for local flights and trips as it protects you when you miss your flight, or miss your cruise, or have a flat tire on your way to the airport, or your hotel turns out to be a bait-and-switch. Don’t set off on an adventure without making proper plans on how to protect your health and your trip.
If you’ve spent some much money on planning a trip, skimping on a travel insurance is not the best approach as that will be pennywise and pound foolish – where you save a few dollars by not buying a life insurance and end up losing so much more money on the backend if something goes wrong with your trip and you can’t recover your funds. So, once you book that trip or make any first attempt towards a trip, add a good travel insurance in the mix. The great thing is that there are so many cheap and good travel insurances and you won’t have to dig too far to find a decent one.
Very much like a life insurance, you need a car insurance. Unlike life and travel insurances which can be optional, car insurances are mostly not. In the US, it is legal to operate a car without the car being insured. If caught, you’re going to lose your driver’s license as well as get heavily fined. If you are lucky, you won’t go to jail. Having a car insurance not only protects you but also protects the other cars driving on the road.
Imagine you get into a car accident and the other driver is seriously hurt and end up spending thousands of dollars in medical expenses. Guess who ends up paying for this bill? That’s right, the car insurance. If the other persons car is damaged and the bill is in the thousands, guess who takes care of it? Yes, the insurance company. And what about your car? Who will fix your car when you are at fault in an accident? Again, the car insurer. So, getting a car insurance, even if it wasn’t mandatory, is a no brainer.
You have this beautiful home and it rains so much your house floods? You can imagine that fixing a flooded home can be a costly nightmare. That is where your insurance company steps in and takes care of you so you don’t have to worry too much about it. Home insurance not only covers major damage to your house but it also covers other damages that you might not even know are covered – all you have to do is verify what is covered by your home insurance to know what you’re getting for the money your spending.
Will they cover a leaking sink? A faulty gas oven? Those are the types of questions you can ask. But if you own a home that is still covered by a bank loan and still paying mortgage, chances are the bank already makes you take a home insurance out to protect you as well as protect their interests.