Insurance and Financial Literacy: 3 Types of Insurance Everyone Needs
Insurance is one of those things that nobody really talks about, but everyone has in one way or another. You’ll have it at almost every stage of your life, even if you decide to move into a shack on the side of a mountain.
Chances are, if there’s a thing you can buy, rent, or lease, there’s an insurance product for it. So here are the 3 types of insurance everyone needs:
Protect yourself with home insurance
Unless you’re living with your parents, chances are good that you’re going to need some kind of home-type insurance. Even if you’re a student living in residence, you probably have stuff that’s expensive and means something to you, like your laptop or that diamond necklace graduation gift from mom and dad.
Even if you rent an apartment with a roommate, you don’t want to count on their rental insurance policy to cover your stuff unless you’re named on it. Splitting renters insurance can be one way to go but I prefer to have my own. You don’t want any disagreements about who gets what portion of the money after the fact.
Once you buy property, home insurance gets really important. You will want to know you’re covered so you have the financial resources to fix things after an emergency. Shop around for the best home insurance policy so you can have the peace of mind that comes with knowing you’re protected.
Auto insurance will get You rolling
Anyone who drives a car must be insured somehow. This is one of the vital types of insurance that is required by law. Whether you have your own vehicle or just borrow your roommate’s, boyfriend’s, or parent’s car once in a while, the right insurance is a must. There are a lot of options for auto insurance but the big one I recommend if you can’t afford to replace your car is collision coverage.
Unless you’re driving something that you can easily replace, buying collision coverage can save your budget if you crack up your car. If you are borrowing a car, you might want to make sure they have collision coverage as part of their insurance policy. Few things will put a bigger dent in your relationship than crashing somebody else’s car.
Health insurance can save your life
As Canadians, we enjoy a level of health care that isn’t seen in a lot of places -- and we don’t have to pay for it directly. But as most Canadians know, “free health care” isn’t really free health care. Most of us will pay out of pocket for dental care, eye exams, and prescription medication. In these cases, there are types of insurance that can save your pocketbook.
Buying extended medical benefits from companies like Blue Cross can be a great help – especially if you have a chronic health condition that requires regular physiotherapy appointments or expensive prescription medications. Even if you don’t, having access to these benefits makes it easier for you to lead healthy life. Taking care of now helps you take care of later.
While you might not want to pay the insurance premiums, the reality is that there are types of insurance it makes sense to have. Get the right coverage to protect your assets now and later.