The fundamental principle of insurance – sharing risks and ensuring protection of valuables – remains the same, whether it’s compulsory to have or not.
It’s common knowledge, that having insurance can alleviate a person’s concern about the possibility of suffering a loss of property, or suffering loss as a result of a disabling accident.
However, what types of insurance are offered, and what protection do each provide?
* Property Insurance.
Property Insurance provides insurance against the loss of all types of property (i.e. home, business, car, boats, or other possessions). This is the most common form of insurance.
Some home-insurance policies even go as far to offer coverage of certain items in the home. When opting for this insurance, one should make an inventory of their insured household possession, including photographs or a videotape of said items. Keep these items, along with any appraisals or purchase receipts, in a safe location outside the home (safe deposit box).
* Liability Insurance.
Liability Insurance provides insurance for anyone who drives an automobile, owns a home or other real estate property, owns and operates a business, or employs others. Owning any of these things means that you will run the risk of liability for an accident.
* Health Insurance.
Health Insurance provides insurance for one’s health care. Even when some countries offer some form of state-sponsored insurance, only a portion of medical expenses may be provided for. Therefore, it is wise to obtain additional private insurance to help cover the remaining cost. Certain health-care plans such as health maintenance organizations (HMOs), offer comprehensive medical care for a set monthly or annual fee. On the downside, a patient’s choice of doctors or treatment, is often limited than with traditional health insurance.
* Disability Insurance and Life Insurance.
Disability Insurance provides income for people who become injured and are unable to work. Life Insurance provides financial assistance to a person’s dependents, in the event of his or her death. This type of insurance has enabled families to pay off outstanding debts, and carry on their normal routine after the death or injury of their main breadwinner.
As with any other important investment/purchases, comparison shopping for insurance is extremely vital. Be wary of so-called low-cost insurances, and remain alert to any other questionable insurance schemes. To be safe, check the reputation of different insurance companies and insurance agents with your local B.B.B.
Therefore, as this overview shows, carrying insurance – whether required by law or not – is a wise investment. It will serve as a protection for both you, your family, and your valuable assets.