Beyond Protection: 5 Types of Personal Insurance Coverage that Protect what Matters Most

Protecting your most valuable assets is crucial in developing a sound personal financial strategy. Knowing that you and your loved ones are financially protected against a variety of unanticipated circumstances will give you more peace of mind. Life’s full of uncertainties and things like an unfortunate death or a medical emergency might occur at any time. Other unfortunate events include damage to your car, property, etc.

Instead of having to deal with the financial effects of these circumstances (and possibly draining your finances), why not choose suitable insurance and protect yourself from financial risks in your life? Below are 5 types of insurance coverage that everyone should have.

Sickness Insurance

When considering insurance for your company, you often overlook a crucial risk. You have coverage for tools, protection from cyber attacks, contractor’s liability, and even a vehicle or workshop, but what about coverage for you? How long would it take for paying the bills to become difficult if you were in an accident or were forced to miss work due to an illness or injury?

The good news is that defense against these types of situations is extremely simple. Having sickness cover insurance protects your monthly income in the event that you get ill or injured and you’re unable to work. Until you’re able to return to work, this type of insurance coverage pays you up to 80% of your salary on a monthly basis. Additionally, short-term coverage helps you pay your medical bills.

The sick pay insurance pays out a lump amount in case you have a major injury, or assists in replacing your monthly income in the event that an accident or illness prevents you from working. However, this doesn’t only cover accidents or illnesses contracted while working. This coverage also helps with your expenditures when you are unable to work, even if you are injured off the job.

What if you receive a harsh hit while playing your usual Sunday football? A severe injury might prevent you from working for weeks. Having sickness cover insurance will protect you from financial difficulties. Similarly, playing golf with an already injured back is another potential cause for a lengthy absence, and people often practise this without paying much attention to the state of their health. Of course, there are many pastimes that carry danger other than sports. A number of accidents that appear to be harmless sometimes end in disaster too.

Is a Sickness Insurance Policy Worth It?

Whatever the cause, worrying and stressing over losing your money will likely slow down your recovery and even make you return to work before you’re ready. The first step in deciding whether you need sickness insurance is asking yourself – “How long would I be able to pay the expenses if I am unable to work due to illness?”. It’s simple to say “it won’t happen to me”; however, insurance exists to safeguard your way of life against the unforeseeable.

Health Insurance

Health insurance is essential for everyone due to the rising costs of medical treatment. Even a routine trip to the family doctor sometimes incurs a hefty expense. On the other hand, a bill for more severe injuries that need a hospital stay often exceeds the cost of a week at a five-star resort. Surgery-related injuries will soon cost five figures. Although the expense of health insurance is concerning for many people, the potential expense of not having coverage is far higher.

Life Insurance

Life insurance offers protection for individuals who are financially reliant on you. Think about whether your spouse, kids, parents, or other loved ones would suffer as a result of your passing away. If your answer is yes, this type of insurance should be high on your list of necessary insurance plans. Consider how much you make annually (and how long you want to work), then get insurance to replace that income in the case of your untimely death.

Renter’s Insurance

Those who rent their homes have access to a sort of property insurance called renter’s insurance. This insurance covers liabilities, personal property, and supplemental living expenses. The homeowner’s insurance doesn’t cover the tenant’s personal property, so in order to safeguard their assets, lessees need renter’s insurance.

Despite the fact that renter’s insurance is different from homeowner’s insurance, they both contain the same elements: coverage for the building (A), coverage for other structures (B), personal property (C), coverage for additional living expenses (D – also called loss of use), liability (E), and medical payments (F).

Coverage C protects the renter’s personal belongings. In the case of a loss, Coverage D offers supplementary compensation for living costs. For example, Coverage D will pay for the cost of living somewhere if a fire forces the renter out of their house and they need to pay for a hotel and meals. Coverage F pays the medical expenses for visitors of the renter who are on the property with authorization and Coverage E covers injuries and property damage caused by the insured.

Automobile Insurance

In most areas, the law already requires having vehicle insurance of some sort. Automobile insurance is something you shouldn’t overlook, even if you drive an old junk that has been paid off for years. If you cause an accident, you’ll potentially face a lawsuit that might cost you a pretty penny. Accidents occur suddenly, and the outcomes are often devastating. By having no vehicle insurance, you save little money and put all your possessions at risk.

Bottom Line

In case something unfortunate happens, such as an accident, injury, legal action, or automobile accident, insurance acts as a financial safety net to assist you and your loved ones in recovering. Nobody wants to experience an unfortunate event. However, experiencing one without insurance leaves many people in a difficult financial position. If insurance coverages are a bit confusing for you, don’t hesitate to contact your trusted insurance broker and get informed!