5 insurance policies that protect your finances
If you’re new to the insurance market, you’re probably wondering what policies you need and what they can do for you. It can be a pain to pay premiums, but in the long run, a small, manageable amount now trumps the need to pay a large, unmanageable sum later.
Only you can decide what protection you need, so it helps to have the facts. Here are some insurance policies that can protect you and your finances:
Car insurance
It shouldn’t surprise you that car insurance gets top billing in this list. It’s the only policy here that you’re legally required to have – unless you don’t own and drive a car.
At their most basic, car insurance policies provide liability coverage, which will help you cover the legal costs of damage to other people’s property as well as any medical costs resulting from collisions. Further protection can be bought to cover damage from weather, theft, and more under the protection of an “all-perils”, or comprehensive policy. Considering how quickly medical and legal bills add up, it’s easy to see how your insurance can provide financial protection if you are in a serious collision.
Car insurance rules differ from province to province, but the one thing they have in common is that you pay a small premium to protect yourself from huge costs.
Home insurance
While not legally required in all provinces, getting coverage for your home might be even more important than covering your car. Whether you own a detached home or a condo, you can buy an insurance policy that will cover the structure and contents of your residence. If you haven’t made the transition to ownership, renters are still able to cover their possessions in case of theft or damage from a variety of circumstances including fires or storms.
Home insurance is essential in many areas of Canada where wildfires and floods are common. If all goes well, you’ll go years without ever needing to make a claim, but if a disaster like the recent fire in Fort McMurray happens, home insurance can provide peace of mind since you know you won’t have to cover all the replacement costs on your own.
Travel Insurance
Travel insurance is something a lot of people probably opt out of when buying plane tickets. Who wants to spend more than they have to on travel? We totally agree, but instead of going halfway across the world with nothing but your bathing suit to cover you, we suggest finding a fairly-priced travel insurance plan.
Travel insurance can cover you in the event of baggage loss, trip cancellation, and missed flights. Policies can also offer medical coverage for when you’re abroad. It’s easy to forget that we need medical or health insurance when we’re out of the country because of our government healthcare. But that coverage basically stops when you set foot outside of your province. Whether you’re travelling within the country or going to South America, avoid the chance at a huge medical bill and get the right coverage.
Life insurance
It may not feel like something you need yet, especially if you’re still young. But as soon as you cross certain milestones in life, it pays to think about what you might leave behind if you pass away: a mortgage, a line of credit, a family to clothe, feed, and nurture. Life insurance provides peace of mind. You know that if the people you care about lose you, you can at least lessen the burden on them financially, if not emotionally. Life insurance is about protecting the people you love.
Health Insurance
Canada is very proud of our public healthcare system. But, as great as it is, it doesn’t cover everything. Having extended health benefits can improve your quality of life, helping you pay for glasses, dental work, therapy, and more. Many employers offer extended health coverage to employees for no extra charge. If that’s not the case for you, it’s possible to purchase policies on your own. You want to defray these types of recurring costs as much as possible, and health insurance helps you do so.
Insurance is a big part of maintaining financial security as you go through life. Maybe you don’t need all, or even any, of these insurance policies today, but one day you might. When disaster strikes, you’ll be glad to be covered.