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Importance of Different types of Insurance

Updated on December 31, 2014


Life is risk. At every point is life, in every aspect of living, one is exposed to one form of risk or another. Insurance protects people and businesses from the effects and losses that arise when these uncertainties come to pass. It does not prevent the unwanted events from happening, but it protects you from the effects that arise.

Why you need Home Insurance

Your home is undoubtedly one of your biggest and most important investments. You should protect it. From what you ask? The list of potential calamities that can befall your home is virtually endless. It can be a natural disaster like a tornado, it can be a gas leak that causes a fire, or it can even be vandalism or an electric fault that leads to damage. Your home can be broken into and your valuables stolen. You may even be holding a party at your home and your guests slip and break a wrist. It happened on your property and you can be directed by law to cater for medical expenses.

All these and more affect your precious investment and, more than that, put you and your family in financial risk. You shouldn't have to worry about that. That is why home insurance is offered. A good insurance policy goes a long way in protecting your home and its belongings.

Should you get Flood Insurance?

Floods are the Mac Daddy of natural disasters in the United States. In the past 10 years alone they have caused over $24 billion in losses. They are America's most costly natural disasters. The standard home insurance does not include flood insurance. This is obtained separately.

It is very crucial to secure your home or business with flood insurance. This insurance policy from the insurance company ensures your security in case of floods that can strike at any time. So surreal is the danger of floods that the law requires federally backed mortgages to acquire this insurance. What if you're not in a high flood-risk region?

Flood insurance is recommended wherever you may be. Since 1980, over 25% of homes that have suffered flood damage have been in low-risk areas. The thing about natural phenomena and current trends is that you can never be sure. Do not wait until the flood is just a few days away. Protect your home and business by acquiring flood insurance from a renowned life insurance company.

Importance of Life Insurance

Let's face the facts-we all have to pass away some time. When that happens, what happens to those we leave behind? The importance of getting a good life insurance policy from a professional and trusted life insurance company cannot be overemphasised.

Should you be the breadwinner of your family, life insurance is crucial. Basically, it replaces your income when you die, thus ensuring that your family and loved ones, though mourning, can carry on with their lives without financial distress. When you buy a life insurance policy, you are literally leaning your heirs with an inheritance by naming them as beneficiaries. This ensures that they have a solid and stable financial future.

Depending on your policy, life insurance also covers the debts that you'll have at the time of your death, from mortgage and credit cards to even car loans. The life insurance company also covers funeral and burial expenses, taking the financial burden away from your family.

Importance of Business Insurance

Acquiring business insurance is no longer a luxury but a necessity. It varies from one business to the next, but regardless of the size, age or industry of the business, this insurance is a fundamental factor that should be included in the budget.

The risks faced by businesses, if succumbed to, can lead to catastrophic losses. Everything from fires, hurricanes to even tornadoes can lead to the closure of a business. However, with the right business insurance coverage, the closure won't be permanent, but merely temporary. The insurance ensures that you do not suffer from interruption of business and serves to get you back on track.

Protecting your business’ property.

The location of a business and its property is always at risk, however low the risk potency is. For instance, an electric fault may spark a fire wild enough to raze your property to the ground. Vandalism can occur. It is important to have in place property insurance.

Potential liability and negligence claims.

The issue of liability comes up. More and more businesses are being sued for liability charges from accidents that occur on business premises to those involving company assets such as vehicles. Product mishaps and defects are also key concerns. Handling of lawsuits can be an expensive as businesses seek to defend themselves. Should the business lose the lawsuit and be directed to pay damages, this may be a costly outcome. Business liability insurance covers all such incidents and protects your business.

When income is interrupted.

The aim of every business is to provide income to its owner. This income is expected to be at a constant inflow in and out of season. But accidents happen. What happens if the inflow is interrupted for one cause or the other? As an owner, you’ll obviously fix the problem. But no replacement can be made for the amount of capital lost due to the interruption. This is where the business interruption insurance policy comes into play. It covers the loss of income and the expenses caused when such a covered event interrupts normal business operation

Getting Auto Insurance

The primary function of vehicle insurance is to give financial protection against car damage or injuries that are caused by car accidents. However, it also offers additional protection from liabilities that may arise due to occurrences such as theft and vandalism. Auto insurance protects you from lawsuits and personal liability and secures the investment that is your vehicle. Given that you're legally mandated to be covered by some vehicle insurance, why not go for the best insurance policies while you're at it.

Expat Medical Insurance

For whichever reason that one is planning to reside in another country, expatriate insurance is a vital commodity that you’ll need. However, it’s immensely difficulty to find the right coverage. Why? With so many options, pitfalls and intrigues, it’s like going through a maze. Most brokers and agents seem not able to assist you and others are looking to swindle you. Finding the right insurance provider is key.

The insurance covers transfer the risks of the daunting medical bills to the insurer. In addition, you need not worry about the competence of health workers who will be assigned to meet your case. Expat insurance ensures you obtain the services of the most experienced and competent health care and medical professionals.

You don’t want to be stuck at a new place without access to credible health care.

Insurance for Security and Peace of Mind

With the right insurance coverage, you'll be able to go on with life at ease, knowing that you have all scenarios covered. The insurance company ensures your security and that of your property. You will thus be in a position to live your life to the fullest and bolster your business to the successful heights you desire.


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