Types of insurance: what can you protect?

When you’ve worked hard to gain different things in life, you may not want to risk them being taken from you. Taking out different types of insurance could give you some financial protection for some of your assets. You may want to consider this, especially when you factor in that some kinds might be mandatory. The sum of items that you wish to insure, as well as how many claims you have made in the past, could affect the premium you pay each month or year.

Life insurance Policies

One of the most crucial types of insurance coverage that you may want to consider can be life insurance. This may offer you cover for when you pass away depending on the type of policy you choose, but generally speaking the Insurance premiums are affordable. In the event that a claim is made, life insurance policies may pay out to cover the outstanding mortgage value or a lump sum payment associated with the claim.

While this might not directly help you, it can make a big difference to your family. Death can be rather expensive, especially if your family wishes to hold a funeral or rely on your income.

The amount your beneficiary may receive can differ depending on how much you stated when taking out your policy. Looking into life insurance policies when you are younger can also help to reduce the premium which is often paid on a monthly basis. Giving details regarding your health, as well as if you are a smoker, can also affect your payments.

Life insurance policies provide peace of mind and security, knowing that your family will be taken care of if something unexpected were to happen to you. No one wants to think about death, but speak to an insurance company to reduce any financial burden in these difficult times.

life insurance

Health Insurance

Health insurance is a type of policy that can provide financial protection against medical costs. It can cover all aspects of private health care including doctor visits, medical bills, surgeries, and even prescription medications. Depending on the plan, it may also cover vision and non-cosmetic dental care.

Health insurance can be purchased through an employer or through an independent provider, and with waiting times increasing on the NHS, private health care could literally be a life saver.

Contents insurance

Although you should be able to keep your belongings in your home safely, there may be a number of issues that could get in the way. Fire, theft, floods, and even accidental damage could ruin your possessions and this is where homeowners insurance comes in. You might want to think about how contents insurance could be of use to you. While this might not stop problems from arising, it can allow you to claim for any losses, meaning you could purchase new items.

Generally, natural problems might already be covered. It can be a good idea to add accidental damage to your policy, even if this means paying a little extra. In particular, those with young children might find that accidental damage may be all the more likely to occur, and that cover could be somewhat reassuring.

car insurance for crash
Motor insurance covers you in a car accident

Car insurance

Unlike some of the other types of insurance, car insurance is mandatory for you to be able to drive on UK roads. At the very minimum, you will need to have third party insurance. This covers damage to other cars or road users. You might want to think about upgrading to fully comprehensive insurance so that any theft or damage to your vehicle is also included.

Some companies may also allow you to add motor legal protection, windscreen repair, and even breakdown into your package, allowing you to adapt it to suit your needs. Failure to have insurance for your vehicle could lead to fines, points on your licence, or even having it revoked. Therefore, you might want to ensure you have a named policy.

Here are some of the key benefits of having comprehensive car insurance:

  • Liability coverage if you are at fault in an accident
  • Coverage for medical expenses if you or any passengers sustain injuries in an accident
  • Collision coverage if your vehicle is damaged due to a collision with another vehicle or object
  • Uninsured/Underinsured Motorist Coverage for protection against drivers who do not have enough liability coverage
  • Comprehensive coverage for theft, fire, and other non-accident related damage to your vehicle.

Travel Insurance

Travel insurance is a must for any vacation. It can protect you against losses and disruptions to your trip, giving you peace of mind while traveling. It can cover the costs of lost or stolen luggage, medical expenses incurred due to illness or injury, delayed flights and trips that have to be cancelled or interrupted. It also covers you for most non-refundable deposits if something happens and you have to cancel your trip.

There are extra that are separate to any travel insurance policies. This include the EHIC (and going forward the GHIC) which gives access to state-supplied healthcare in Europe. And there is flight cancellation compensation, which varies depending on the distance of the flight and the duration of the delay.

Conclusion and other types of Insurance

Different kinds of insurance can protect you in a number of ways. Whether you want to make sure you’re a lawful road user, or look after your family when you’re gone, it might be a good idea to research the policies available. Depending on your job, you may also need to look at professional liability insurance, and if a business owner you may need to have employers liability insurance.

At the end of the day, having adequate insurance cover is one of the best ways to protect yourself from financial hardship in case something unexpected happens. Don’t take any risks, make sure you’re properly protected!