Insurance protects you from unexpected expenses. Without it, you could be one house fire, accident, or illness away from a lifetime of debt. But for something so crucial for everybody’s well-being, insurance can be a complex topic that not everyone understands, making the process of choosing a policy and coverage options harder than it has to be.
To help you streamline the process—here are the six types of insurance policies that everyone should have.
Homeowners Insurance
Although having homeowners’ insurance won’t prevent your belongings or house from getting damaged, it will give you a financial safety net if any unexpected accidents within your property happen. However, this policy has several loopholes, so it can be challenging to determine if it has the appropriate coverage you need. That’s why it’s best to hire accountants for property and construction to help you pinpoint which policies will benefit you more in the long run.
Health Insurance
There’s a government-funded system named the National Health Service (NHS) that provides healthcare for all in the UK. Although it can cover basic costs such as emergency room visits, doctor appointments, or ambulance expenses, it doesn’t cover everything. That’s why aside from being a member of the NHS, it pays to have health insurance to ensure you’re covered for all healthcare costs.
Since medical expenses can cost you up to thousands, having health insurance can help you avoid getting into debt while ensuring you get the best care possible.
Life Insurance
Death can be costly—from settling estates to planning funerals. The associated expenses can set anyone back. However, having life insurance can mitigate the financial burdens placed on your surviving loved ones and dependents. The policy can pay beneficiaries an agreed-upon amount to cover the costs left by the deceased.
Disability Insurance
Disability insurance aims to replace income when a person gets into an accident or develop an illness that makes them unable to work. Whether you’re choosing a long- or short-term policy, it usually has particular criteria of what qualifies as a disability.
The policy will only pay you a percentage of your wage you were earning before becoming disabled, which can range from 40% to 60% of base salary for a long-term plan and 60% to 70% for a short-term policy.
Auto Insurance
When you get any form of vehicle, most countries require you to get auto insurance, making it illegal for you to cruise around uninsured. That’s because the road can be a dangerous place, and accidents can happen—and they’re usually costly. That’s why if you have a car, motorcycle, or truck, getting insurance won’t only help you get out of legal trouble, but it can also save you thousands over time.
Pet Insurance
If you have a pet, bringing them to the vet can surprisingly rack in some huge bills. Fortunately, you don’t need to worry about not being able to afford the care your pet needs by getting pet insurance. The policy covers most veterinary treatments when your pet gets hurt or sick. Paying for pet insurance is more cost-effective than paying out-pocket-costs to your vet should your pet require emergency medical treatment, such as a visit to the ER.
Although you can’t prevent the unexpected from happening, it’s best to protect yourself from these occurrences. Getting the policies mentioned safeguards you from these incidents financially—allowing you to live on happily, confidently, and debt-free.
