Three Types of Personal Insurance Every Person Should Have
by adminPart of getting older and growing up means taking responsibility. One way to do this is to get insured in various areas of your life so you have some protection should something unfortunate and unforeseen happen. Insurance is something all adults should be looking into for extra protection against unforeseen circumstances.
If you are a young adult that has recently started living independently, or you’re looking for areas in which you can secure your future and assets, you may be unsure of what type of personal insurance you need in your life. To assist you with this, we’ve come up with the three types of personal insurance every person should have.
Home Insurance
Our homes are our sanctuaries. They provide a place for us to sleep, eat, entertain, and relax. Should your home become compromised or damaged through a fire, an extreme weather event, a burglary or otherwise- we can be at a serious loss both practically and financially.
Buying a home is a huge achievement and your house or condo acts as an asset in your portfolio. If it is damaged, then not only are you potentially without a place to live, but your net worth can also decrease. Home insurance can help lessen this. If you rent your home, you can be liable for damages caused to it during your tenancy. Renters insurance is a type of personal insurance that may help cover you in this case. Home insurance may be able to cover temporary accommodation if you need to vacate your home. That is to say that home insurance has both short and long-term benefits for homeowners and renters.
There are numerous different areas home insurance can cover such as content insurance to insurance that protects against litigation should someone else be injured in your home. Your insurance broker will talk to you about your home and help you come up with the best coverage for it.
Auto Insurance
Car owners need to have auto insurance. This is a legal requirement if you want to drive in Canada.
Three types of auto insurance protect you against damage, loss, injury and liability:
- Liability insurance
- Collision insurance
- Comprehensive insurance
While this can seem confusing, the law in British Columbia states that your Basic Auto Insurance needs to have at least $200,000 in Third Party Liability coverage, so you can start from there and go through additional coverage with your insurance broker.
For many people, their car is their livelihood as they need it to get to and from work for errands and to transport family members. This makes auto insurance an essential type of personal insurance for those that own a vehicle.
Life Insurance
Life insurance means that a specific person or people like family members can be financially protected if they die. While it might be considered morbid to prematurely contemplate our death, it allows us to take responsibility towards those who may fully or partially depend on us financially.
Some of us are the breadwinners in our households and if we pass away, then that income disappears. Even if you are not the highest financial earner in the family, your death may require a family member to take time away from their job and the pay that comes with it.
Death also comes with expenses such as funerals, debts that are left behind and upcoming mortgage payments. Life insurance is one of our essential types of personal insurance as it helps alleviate these stressors.
Get Covered
We offer home insurance, auto insurance and life insurance at Prime Insurance. Get in touch with us today to discuss your personal insurance needs!