Understanding The Different Types Of Insurance

What is insurance? Insurance is a legal way that individuals and businesses avoid suffering financial loss. This might be from a slip or fall, a car accident or accidental property damage. It could be anything really, and there are different instances where having insurance will help you a lot. On the other hand, other types of insurance you can take or leave. Then there are more types that are a legal requirement in some countries. So, let’s get to grips with another thing that you can add to the bills when you become an adult.

Home Insurance

Hardwood floors look stunning don’t they? They add a certain amount of class and appeal to your home, there’s no doubt about that. But have you ever dropped a phone on a hardwood floor? The effect is not usually pretty. If you’re lucky, the phone hits at just the right angle to cause no damage at all. But if you’re unlucky the screen shatters, and it might hit the floor so hard it breaks completely. You’ll be glad you had home insurance, particularly if you didn’t buy the phone on a contract. You can ring up your insurance provider and they’ll either give you a new phone or give you the money for one. Of course, it’s not quite as simple as anything that breaks can be replaced. The more you claim the higher your insurance rate rises. But home insurance also gives you legal coverage. That means if anyone slips or hurts themselves on your property, you’re covered if they sue.

Health Insurance

Whether or not you need health insurance will depend where you reside. if you live in the UK, you won’t need health insurance. Unless, you want private treatment. If you want private treatment your health insurance will cover the costs. If you’re an expat you’ll also have to look at the different medical insurance companies. You can then decide which one will give the best coverage. When you’re staying in another country, you’ll always be covered for medical damages. In the United States, the situation is a little different. Not having medical insurance could mean you have to pay tax, penalties and make treatment costs a fortune.

Life Insurance

You won’t always need life insurance. If you’re single and have no one depending on you, there’s really no need to have life insurance. No one is going to get the money that you leave behind when you pass on. If you have a family who are dependent on your income, you should consider getting life insurance.  In the event of your death, they’ll get an amount of money based on how much you would have earned if you had not of passed on. You might think that if you have coverage from your work, you don’t need life insurance. An employer will usually pay out four years worth of annual salary in the event of death in service. While this is valuable, you still might want your own form of coverage.

These are just some of the different types of insurance you can get. But, there are others and in most cases, even if they are optional, it’s best to be financially covered.

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