Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Gold/SPX Ratio and the Gold Stock Case - 18th Jan 21
More Stock Market Speculative Signs, Energy Rebound, Commodities Breakout - 18th Jan 21
Higher Yields Hit Gold Price, But for How Long? - 18th Jan 21
Some Basic Facts About Forex Trading - 18th Jan 21
Custom Build PC 2021 - Ryzen 5950x, RTX 3080, 64gb DDR4 Specs - Scan Computers 3SX Order Day 11 - 17th Jan 21
UK Car MOT Covid-19 Lockdown Extension 2021 - 17th Jan 21
Why Nvidia Is My “Slam Dunk” Stock Investment for the Decade - 16th Jan 21
Three Financial Markets Price Drivers in a Globalized World - 16th Jan 21
Sheffield Turns Coronavirus Tide, Covid-19 Infections Half Rest of England, implies Fast Pandemic Recovery - 16th Jan 21
Covid and Democrat Blue Wave Beats Gold - 15th Jan 21
On Regime Change, Reputations, the Markets, and Gold and Silver - 15th Jan 21
US Coronavirus Pandemic Final Catastrophe 2021 - 15th Jan 21
The World’s Next Great Onshore Oil Discovery Could Be Here - 15th Jan 21
UK Coronavirus Final Pandemic Catastrophe 2021 - 14th Jan 21
Here's Why Blind Contrarianism Investing Failed in 2020 - 14th Jan 21
US Yield Curve Relentlessly Steepens, Whilst Gold Price Builds a Handle - 14th Jan 21
NEW UK MOT Extensions or has my Car Plate Been Cloned? - 14th Jan 21
How to Save Money While Decorating Your First House - 14th Jan 21
Car Number Plate Cloned Detective Work - PY16 JXV - 14th Jan 21
Big Oil Missed This, Now It Could Be Worth Billions - 14th Jan 21
Are you a Forex trader who needs a bank account? We have the solution! - 14th Jan 21
Finetero Review – Accurate and Efficient Stock Trading Services? - 14th Jan 21
Gold Price Big Picture Trend Forecast 2021 - 13th Jan 21
Are Covid Lockdowns Bullish or Bearish for Stocks? FTSE 100 in Focus - 13th Jan 21
CONgress "Insurrection" Is Just the Latest False Flag Event from the Globalists - 13th Jan 21
Reflation Trade Heating Up - 13th Jan 21
The Most Important Oil Find Of The Next Decade Could Be Here - 13th Jan 21
Work From Home £10,000 Office Tour – Workspace + Desk Setup 2021 Top Tips - 12th Jan 21
Collect a Bitcoin Dividend Without Owning the King of Cryptos - 12th Jan 21
The BAN Hotlist trade setups show incredible success at the start of 2021, learn how you can too! - 12th Jan 21
Stocks, Bitcoin, Gold – How Much Are They Worth? - 12th Jan 21
SPX Short-term Top Imminent - 12th Jan 21
Is This The Most Exciting Oil Play Of 2021? - 12th Jan 21
Why 2021 Will Be the Year Self-Driving Cars Go Mainstream - 11th Jan 21
Gold Began 2021 With a Bang, Only to Plunge - 11th Jan 21
How to Test Your GPU Temperatures - Running Too Hot - GTX 1650 - Overclockers UK - 11th Jan 21
Life Lesson - The Early Bird Catches the Worm - 11th Jan 21
Precious Metals rally early in 2021 - 11th Jan 21
The Most Exciting Oil Stock For 2021 - 11th Jan 21
Financial Market Forecasts 2021: Navigation in Uncharted Waters - 10th Jan 21
An Urgent Message to All Conservatives, Right-Wingers and Patriots - 10th Jan 21
Despite Signs to the Contrary, Gold Price at or Near Top - 10th Jan 21 -
Ultimate Guide On The 6 Basic Types Of Index Funds - 10th Jan 21
Getting Vaccinated at TESCO - Covid-19 Vaccinations at UK Supermarket Pharmacies and Chemists - 10th Jan 21
Cheers for the 2021 Stock Market and These "Great Expectations" - 9th Jan 21
How to Plan Your Child With Better Education - 9th Jan 21
How To Find The Best Casino - 9th Jan 21
Gold Is Still a Bargain Buy - 8th Jan 20
Gold Price Set to Soar as Hyperinflation Looms - 8th Jan 21
Have Big Dreams? Here's How to Pay for Them - 8th Jan 21
Will the Fed Support Gold Prices in 2021? - 8th Jan 21
Stocks trading strategies for beginners - 8th Jan 21
Who is Buying and Selling Stocks in 2021 - 8th Jan 21
Clap for NHS Heroes 2021 as Incompetent Government Loses Control of Virus Again! - 8th Jan 21

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

What is the right type of insurance for you, and how do you find it?

Personal_Finance / Insurance Dec 03, 2020 - 11:15 AM GMT

By: Sumeet_Manhas

Personal_Finance

Insurance is available for all types of situations and can ease financial difficulties resulting from a burglary, accident or holiday being cancelled. Some countries will not allow visitors to travel there unless they have adequate insurance to cover all eventualities and it is compulsory in other areas of life too.

You will be fully aware that you cannot ride a motorbike or car without insurance and yet many people think it wise to rent mopeds while in foreign countries thus invalidating their travel insurance if they have an accident.

How do you know what type of insurance you need for your situation, and who do you ask for advice?


Different types of insurance

There are an almost endless list of insurance products on the market but here are the most common ones that you are likely to use.

Health Insurance

Covers the cost of medical bills, prescriptions and surgery. Its importance will depend on what country you live in and what level of care you require. For instance the UK has the National Health Service which is free. Other countries require payment for healthcare.

Vehicle Insurance

This is needed by anyone who drives a scooter, motorbike, car, van or other vehicle. There are different forms ranging from covering accidents to fully comprehensive that cover theft and damage. It is Illegal for vehicle owners not to have coverage adn to operate on roads and highways.

Home Insurance

If you owned a home outright then there would be no legal obligation for you to have home insurance. If you have a mortgage however then your lender will most likely stipulate that you need insurance cover. Buying a home is probably the most expensive purchase anyone would make so it makes perfect sense to insure it.

Life Insurance

This is a way of providing for your family after you pass away. There are different types of cover and which one you choose would depend on your age and other requirements. If you are young you may opt for a life term insurance policy which will last for a set amount of years before either being upgraded or renewed. Or, you may prefer to take out permanent life insurance that lasts for the duration of your life. This is more costly but has other benefits. If you have no dependents you may decide that you don’t need this type of insurance at all although you may end up with a Public Health Funeral.

Pet Insurance

Just like humans, pets get sick. Vet bills and medication costs can add up dramatically and if there is no emergency savings fund it can be a very difficult time deciding whether you can afford for your pet’s surgery to go ahead. Pet insurance takes care of this the same way healthcare insurance does for adults. Anyone with a pet should have this. It is a good idea to take out when the pet is young so the premiums start low and remain so.

Travel Insurance

Going overseas? Then it is vital to take out travel insurance. This is one area where many people skim over or ignore. Not reading the small print can lead to people invalidating their insurance claim or realising they were not covered enough for hospital bills or in the worst case, repatriation after a death. There may be an excess on your cover or you may need to claim within a time frame that is difficult if you are planning a long trip. One mistake many people make is to take out the policy online after they have left their own country. This will lead to a completely useless policy and a total waste of money.

There are other types of insurance for individuals such as umbrella insurance and renters insurance for tenants renting privately and who want to protect their personal items against theft and damage.

Business Insurance

Business insurance is a much trickier area than individual insurance policies. They have their own types of insurance and it can protect the buildings, contents, staff and other company concerns. There is both professional liability and product liability insurance which can cover claims against negligence and for damage caused by a businesses’ products. They will also cover their vehicles and often have business interruption insurance that provides for an unforeseen problem stopping production or a disruption to normal business.

One other area that businesses cover is keyman insurance. This is a very specific type of insurance to businesses that covers an individual who is greatly valued by the company. In the case of something happening to the insured keyman then the company would receive a financial benefit from the policy to compensate for the loss of such an important employee. Visiting MyKeyManInsurance.com can show more details on this unusual but important business insurance. An example of a keyman may be the founder of the company or the CEO.

Where should you get advice?

Businesses will have their own advisors although small businesses would need to speak to professionals about their own needs. As for individuals, couples and families then searching the internet for a start can help to compare different insurance companies and policies. Meeting a licensed insurance broker will also yield professional advice.

Insurance brokers can give good advice (check that they are licensed first) and will be able to offer a wide range of products. They may be able to offer policies that aren’t readily available and many people prefer to deal with a person face to face instead of across the phone or internet.

The biggest mistakes people can make with insurance policies are not using a reputable company or broker and taking out the wrong type of policy. You need to make sure the coverage is suitable for any eventuality and you will be able to claim. If you have no dependents then think again on paying for life insurance. If you are travelling abroad make sure the policy covers the activities you want to partake in. Insurance can be a lifesaver or it can be a waste of money if you choose the wrong type. And don’t forget your pet, you may thank yourself later down the line.

By Sumeet Manhas

© 2020 Copyright Sumeet Manhas - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules