Insurance is a financial product in which companies that offer it will take on some form of monetary risk in return for the payment of premiums. There are many types of insurance that you may want to consider purchasing to protect yourself and your family.
An individual will typically invest in it to guard against having to pay out a large sum of money for common problems that may occur. Being insured gives peace of mind that should disaster strike, the financial implications of this can be dealt with and some of the common insurance products available include the following.
Life Insurance
No one wants to think about dying although all adults need to consider the problems this can leave for family members. This is especially true for those that are breadwinners, and life insurance is designed to pay out a sum of money in the event of the insured person dying.
This is most commonly paid to a family member and is a way for someone to ensure their loved ones are provided for in the event of their death. Contacting a company that offers this is a way to get life insurance quotes that will show how much money can be obtained for different premiums.
Property Insurance
Anyone buying a home or business premises will usually have to get property insurance as part of the deal for receiving a mortgage. This type of business insurance can have a few elements to it, with the two most common being building and contents.
The building part covers for the cost of damage to the property caused by fire, flood, and other disasters. The contents part covers for the loss of the property owner’s belongings due to theft, vandalism, or damage.
Vehicle Insurance
It is against the law to drive on UK roads without having vehicle insurance in place and this means anyone intending to buy a car, van, motorbike, or other automobile must insure it. There are many companies that offer car insurance and there are a few different types available. The most basic is third party, which pays out for the cost of damage caused to other vehicles if the covered driver is responsible for an accident.
Third party fire and theft provides additional protection for the covered driver by also paying out if their vehicle is damaged by fire or stolen. Fully comprehensive offers the most extensive protection possible for the covered driver’s vehicle and those they are in an accident with.
Health Insurance
The cost of medical bills can be expensive should someone fall ill and investing in health insurance is a way to cover these. Quotes for this type of insurance can depend on factors such as age, current health, previous problems, and any medical conditions suffered. Even those that consider themselves in good condition should think about the benefits of health insurance as illness and injury can strike at any time.
Guarding against the cost of unforeseen circumstances is a common sense course of action and this is what insurance is for. While there is a cost in paying premiums, it can be worthwhile to avoid a large bill landing on your doormat.
The insurance types shown above are some of the common options and anyone should consider investing in these.
What other types of insurance policies do you recommend that everyone have to protect themselves and their families?
I looked into life insurance recently and I was advised that it’s important to structure the insurance in the right way to avoid the payout becoming part of your estate (for inheritance tax purposes) when you die. It’s worth considering, otherwise you could lose almost half of the money paid out by the insurer.