Insurance 101: A responsibility that enables you to enjoy peace of mind 😌
Insurance enables you to enjoy your life to the fullest — and the sooner you start paying attention to it, the better. So, good that you’re here to start! In this article, we’ll explain what it is, why it’s beneficial & introduce you to some of the common types of insurance.
What is insurance? 💡
Living everyday life comes with many different problems — so learning how to manage and mitigate risk is essential. Insurance is simply financial protection that happens by transferring your risk to an insurance company by creating a contract. This way, when an unpredictable and negative life event happens, you can get financial compensation for your losses.
“Life insurance is a combination of caring, commitment, and common sense.” — Howard Wight
What are the benefits? ✅
If one of your goals is financial freedom, you have to realize that insuring your valuables is as important as saving enough money. Life is unpredictable, and there might come a time when your bill from an emergency could be higher than your entire savings, and years of hard work would just disappear. This can happen to anyone, no matter your financial situation, so thanks to insurance you’ll have a guarantee of financial security and protect both you and your family. This can have a side benefit of letting you live at ease because tragedy targets both the mind & wallet, so you don’t have to stress at least about one of those.
Types of Insurance 👀
Insurance protects what’s meaningful to you, so it can be anything from small to bigger valuables. The most common types of insurance are for life, health, vehicles, disabilities, home, travel, or business.
Life Insurance 👨👩👦
It’s tough to think about the worst-case scenario, but if difficult life events such as tragic accidents, disabilities, hospitalizations, or even death happen, life insurance is a way to establish financial stability for you and your closest ones. That’s the reason why it’s common to have the head of the household insured — but it’s not the only scenario. Life insurance helps you avoid insolvency due to an injury resulting in lowered income if you’re responsible for a mortgage or other loans.
Health Insurance 💊
Health Insurance comes in many types, as there are various health problems we might be facing — unexpected illness, family or individual problems, and even diseases that come with age. In many countries, the cost of healthcare is rising, as new diseases and treatments are emerging.
Car Insurance 🚘
There are many types of motor insurance products, but in many countries, it’s mandatory to have at least basic insurance, that covers the third party in the accident. The price of your motor insurance depends on your residence, type of vehicle, your accident history, age, and limits of money cover. It’s important to have insurance for both your vehicle and a third party involved in the accident.
Disability Insurance 🤕
Very related to accidents, it’s important to have a safety net if anything goes wrong and you end up living with a serious disability. This will ensure that a part of your monthly income is covered if you’re not able to do your job.
Home Insurance 🏡
Unfortunately, our most beloved place on the planet that we feel safe in isn’t often as safe as we might think. If there is a risk involved, it’s probably a huge one: ranging from theft to natural disasters. Our home is not only a place we live in, it’s also full of valuable possessions. Each of our situations is unique, so there are many different types of insurance as they cover different events.
Travel Insurance ✈️
This is another type of insurance that completely depends on your personal needs and what your normal insurance covers. Nevertheless, if you’re traveling abroad for a longer period of time, it’s a good idea to have insurance as it covers all kinds of events: flight cancellations or delays, lost baggage, risky sports activities, medical assistance, accidents, or damage to your valuables. It’s also important to compare the price range of ambulance and medical care in both your travel destination or home country, as it can be much higher abroad.
Business Insurance 💻
If you’re a small business owner, you need to protect your company from risks and loss of income. Since this is a very complicated area of insurance, it’s best to seek professional help. If you don’t know where to start, look into general liability coverage, workers compensation, and commercial auto insurance. Other things that are important to cover are your tools and equipment, property, furniture, inventory, unexpected medical expenses, or even funerals.
We hope that this article helped you realize that there are a lot of risks in our lives and a manageable way to mitigate them. Maybe, you are one step closer to identifying what kind of insurance is best for you!
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