The right level of insurance is essential to protect yourself from expensive and unexpected emergencies that crop up later down the line. Should anything go wrong with your health, home, income or car, your insurance is there to cover the costs so you’re not out of pocket. Ensuring you are properly protected should form part of your regular financial planning. But with so many different types of insurance available nowadays, it can be tricky to know where to start. So, what insurance is absolutely essential and what can you live without? Here, we explore the insurance policies that every adult should have .
Life insurance
What is it?
Life insurance literally ‘covers’ your life. In the event of your death, your life insurance provider will pay out a specific sum to your chosen beneficiary. This is to cover any essential costs that they may struggle to pay without your income.
Is it essential?
Yes, it’s essential for anyone who has dependents. If you have a partner or children that rely on your income, life insurance is vital. You will only pay a small amount to your insurance provider each month for your cover, which will give both you and your family peace of mind that the future is covered.
Home insurance
What is it?
Home insurance covers your property and often your possessions, too. There are several different types of home insurance, so it’s important to establish which is necessary for you. Building insurance covers the cost of damage to your property, such as walls, windows or the roof. Contents insurance covers your belongings if they are damaged or stolen, for instance, your TV or furniture.
Is it essential?
Home insurance is a must-have for homeowners, as most mortgage providers require you to take it out to cover any unforeseen future issues. Not only is it vital for your mortgage agreement, but also for your own financial well-being too. If any accidental damage happens to your home or you are burgled, your home insurance will cover the incurred costs. So, you don’t need to worry about forking out money that you potentially don’t have.
Car Insurance
What is it?
Car insurance covers you while on the road in your vehicle. What is covered depends on the level of cover you take out – the three main types are comprehensive, third-party or third-party, fire and theft. For instance, if you have comprehensive cover your policy providers will pay out if your vehicle is stolen, suffers physical damage or you experience a road traffic accident. It may also cover any damage to other road users, pedestrians and public property.
Is it essential?
Yes, car insurance is a legal requirement for all road users. The only vehicles that don’t need insuring are those that have been registered as off-road with a SORN (Statutory Off-Road Notice).
For more information about car insurance policies, claims and covers, contact a car accident lawyer in Pittsburgh PA.
No matter which type of insurance you’re taking out, it’s important to ensure that you are getting the right level of cover for your individual circumstances. After all, everyone has unique needs, so what works for one person may not work for you. Before you take out insurance, shop around for the best deal and make sure you’re only covering what you need, so you don’t pay over the odds.
