insurance

3 Types of Insurance Every Adult Needs

While we can’t always predict the future, we can safeguard ourselves against certain liabilities that the future could bring. Insurance offers you peace of mind against unforeseen circumstances. Today, it’s easy to find insurance policies that cover almost everything. To make things even easier, we’ve shortlisted three essential types of insurance every adult should have.

1. Home Contents Insurance

Homeowners are susceptible to burglaries, forced entries, and thefts. Nowadays, burglars have sophisticated tools that enable them to access homes with locked doors and alarm systems. Not only that, certain unforeseen natural disasters like fire, lightning, and earthquakes can cause severe damage to your home and possessions.

The best way to guarantee the safety of your home and belongings is to buy a home contents insurance plan. This type of insurance includes home insurance and content insurance combined. Home insurance covers the financial cost of repairing the damage done to the home after the insured event. Similarly, the contents insurance policy provides cover for the contents of your home.

Depending on the amount of insurance, home contents insurance can cover the costs of repairing or rebuilding the insured property. In addition, it also covers the cost of replacing specific personal possessions and household items that were damaged during an insured event.

Even if you own a condo, there are various condo insurance policies you can choose from to protect your property. If you decide to rent out your property, consider a landlord’s insurance policy to protect you from liabilities from theft, malicious damage, and weather-related events. There’s also the renter policy that provides tenants with personal property coverage.

2. Automobile Insurance

In 2018, over 6.7 million car accidents cases were reported in the U.S alone. Auto crashes alone account for thousands of disabling injuries and deaths every single year. Many countries have regulations that mandate motorists to have auto insurance. Police and traffic authorities in these countries conduct random routine checks of motorists for proof of auto insurance. Uninsured drivers are liable to face stipulated penalties, including fines, license suspension, and imprisonment.

Auto insurance helps cover the cost of repair and liabilities that might result from the auto accident. Additionally, this type of insurance protects your vehicle against vandalism, theft, or weather-related incidents. The cost of auto insurance varies according to insurance companies.

3. Life Insurance

Many families struggle to meet their daily living expenses after the death of the family’s breadwinner. This is why it’s a good idea to take out a life insurance policy to ensure that their loved ones and dependents are adequately cared for after they are gone. Insurance experts recommend getting a life insurance policy that’s worth ten times your annual income.

Sadly, not everybody can afford to get that amount of coverage. The good news is that you don’t have to break the bank to get a comprehensive life insurance cover. Before you sign the dotted line, do a quick check to see if the amount of coverage covers the day-to-day living expenses of the people you are leaving behind. These expenses may include taxes, outstanding loans, mortgage payments, child support, future college fees, and credit card debt.

Life insurance is of two types; term life and traditional whole life insurance. The former refers to a policy that provides cover for a specified amount of time. In contrast, traditional whole life insurance covers you until your demise as long as you keep up with premium payments.

Speak to your insurance agent or broker to get professional advice on which type of life insurance coverage is best for you. Before settling for any option, remember to factor in your age, profession, and number of dependents to help you make a strategic decision.

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