How Much Insurance Do You Need?


 

Further Information

Our lives, family, possessions and finances are the most common things that people pay out insurance for. After building wealth and a happy life, people want to find a way to preserve this and provide for their loved ones if anything were to happen to them. Though some may say some insurance policies are unnecessary and overpriced, some are vital to protect whats important to you.

Of course, some insurance is not optional and people legally must have certain policies. For drivers, by law you must have at least third party insurance. There are serious legal consequences if youre caught driving without the correct insurance. Furthermore, it is advisable to have comprehensive care to repair and replace your vehicle if it gets damaged. Most insurance policies also include accident care. This intends to cover medical and legal fees if you injure another person in an accident, but coverage varies from policy to policy.

Another insurance that is usually non-negotiable is building or homeowners insurance. If you have a mortgage or home loan, your lender will usually insist that you have insurance to protect both theirs and your investment.

Aside from required insurance policies, there are some that are definitely worth investing in. If you have a family, life insurance is a good way to protect their futures. It is especially important if a spouse, child, parent or any other dependent may face financial hardships if you died. To work out how much life insurance you should have, work out how much you earn per year and how many years you plan to be working for. Try going to your local insurance provider and asking for a life quote, you can have your life quote estimated online as well. Also consider the cost of a funeral and then purchase a policy accordingly.

Contents insurance is also a good idea. Theft, floods, fires are all risks that contents insurance will protect you from. Be vigilant when working out your policy. Dont overestimate the value of irreplaceable items, but equally dont overlook the cost of your belongings. Think carefully about how much it would cost you to replace your entire wardrobe. Clothing is something most people tend to undervalue.

An insurance policy that often gets overlooked until it is too late is pet insurance. Our animal companions can cost a huge amount over the period of their lives, especially if they have health problems or are involved in an accident. The price of veterinary treatment has risen dramatically over the past 15 years and medical advancements means animals can now have complex surgery to prolong their lives. All of these potential expenses can be covered for an average of s10 a month per pet.

Travel insurance is also easy to forget, but even if you are only going away for a weekend, you really should be insured. It costs £20 or less on average and can cover you against medical bills and last minute cancellations. Being hospitalised in a foreign country can be very stressful, so it is best to eliminate the extra worry about how you are going to pay for it.

Though it may seem like there is too much to insure sometimes, it is worth investing in your future as you never know when you might need cover.

Share