Life can be unpredictable sometimes and because of that you need to take precautionary measures in order to protect yourself and your personal assets from accidents and hazards. One of the best ways to do so is to obtain insurance.
In general, selecting the right type of insurance will provide you with financial and legal protection by covering the costs of damages and injuries sustained in an accident of any kind. It basically gives you peace of mind knowing that you have something to rely on in the case of any unpleasant and unexpected events.
Although there are many types of insurance coverage available, there are a few that everyone should have. They are all used for different purposes and vary depending on the person’s specific needs, lifestyle, and employment benefits.
To gain a better understanding of the matter, here is our ultimate guide elaborating on the five most vital insurance policies you should purchase.
Car insurance
Your car is one of your most important assets and it is your main responsibility to take care of it properly. The best way to do it is to get auto insurance to provide yourself with financial coverage in the event of a car accident or damage. There are several types of car insurance policies you can purchase, some of which are required by law and others which are optional.
Because the price for each policy varies between insurance companies and states, you should shop around for multiple quotes before settling on the first one. In addition, make sure you consult with brokers to guide you in the right direction.
For example, if you live in Oakville, Ontario, search for a reputable brokerage that will help you find the best car insurance in Oakville and the surrounding areas for a fair price.
Home or renter’s insurance
After your car, the home is your second most important asset. To protect it against damage and theft, you need to obtain home insurance. This should cover the replacement of structure and the contents in the case of an unexpected event, as well as the cost of living if you need to live somewhere else while your home is being repaired after an accident.
Also, if you are a renter, you should know that you are required to obtain renter’s insurance. This will provide you with financial coverage for your personal belongings, liability and any additional living expenses for covered losses.
Health insurance
While maintaining a healthy lifestyle is important to stay on top of your well-being, obtaining health insurance is also very important. The truth is health care costs can be very expensive and if you have to undergo a special treatment or suffer from severe illnesses, but don’t have health insurance, you could end up bankrupt if anything happens to you.
In general, there are two main types of health insurance and these are private and public health insurance. The first one is usually provided by employers or through a private company, whereas the latter is provided by the government.
Long-term disability insurance
Another important insurance policy every person should have is long-term disability insurance. The main purpose of this insurance is to provide financial support, more specifically to replace a percentage of your income, if you are unable to go to work because of an injury or illness. The coverage can be used for permanent, temporary, partial or total disability, but it doesn’t cover medical care.
Although every employee should have long-term disability insurance, the people who can benefit the most from it are those who work in physical professions, such as construction workers, miners, dancers, and yoga instructors.
Some employers may offer this type of insurance as part of a benefits package.
Life insurance
Life insurance is a type of insurance policy that is used to provide coverage for people who are financially dependent on you. In other words, if something were to happen to you, your family can rely on this policy to take care of them if they face financial hardships after your death.
In general, there are many types of life insurance available, but term life insurance and whole life insurance are the most common. To estimate the amount of the policy, you need to factor in several costs such as funeral expenses, daily living expenses, mortgage payments, outstanding loans, taxes, child care, and future college costs.
Final thoughts
The best way to protect yourself, your family, and your personal assets is to obtain insurance. There are several types of insurance policies available, with each offering different coverages and financial support which you can use to rebuild your life in the case of an accident or injury.
For more information, refer to our post and read about the most important insurance policies everyone should have.