23
Let’s talk about some basic facts about today’s life for the average person.
- The first fact is that everyone needs insurance. There are billions of people in the world with no insurance coverage or very little coverage, just for example, a car with a flat tire.
- The second fact is that those people who have insurance cover everything from health insurance to auto insurance to life insurance to pets insurance.
- Thirdly, it takes a lot of money to get these policies in place and they are expensive, so you can consider yourself lucky if you do not have any medical bills because you have a pretty cheap and affordable policy as it is.
- Fourthly, many people actually don’t like their doctors or hospitals so they often cancel their medical plans when they get sick and go elsewhere because they prefer to be treated by their friends and neighbors than going into the hospital alone.
- Fifthly, we all need to keep our premiums up because we may not be able to afford them even if we had good health coverage.
1. What are the different types of insurance policies available?
Before we can even open a discussion about insurance, we must first address the very nature of what insurance is.
Insurance is one of the most important financial decisions that you will ever make. It’s not always easy to discuss what insurance is and where it comes from. In this post, I’d like to help you understand exactly what insurance is and where it came from.
As a personal finance expert, financial adviser and author, I have been asked many times by clients who have questions about their finances, “What does all your stuff cost?” or “How do you afford those nice-looking houses and cars?” These are all questions that really fall into the realm of topics that require an in-depth answer because they touch on such important subjects as personal finance, investing, retirement savings and real estate.
The reason why these questions are so difficult to answer is because they are so subjective. For example, it might be more expensive for some people to buy a new car than it would be for others. And it might be more expensive for some people to buy a house than it would be for others. And nobody knows if they could afford their mortgage or college education without a strong financial security plan in place.
2. How to choose your insurance policy?
If you are reading this, chances are you have some kind of insurance policy, whether it’s term life insurance, personal accident insurance or health insurance. There are times when we need to think about buying an insurance policy but not necessarily just because of the financial implications.
For example: A holiday overseas may be a good option for a few people in your family, but not everyone will be able to afford the trip and have enough savings to cover the costs.
In fact, some people may decide to postpone their travel plans as a result of such an illness or accident. There could be other reasons why one might consider postponing their trip. But here is a list of important reasons why you should buy an insurance policy:
- You may need it for your family members!
- You can help out your family members after they get injured or killed by the accident caused by another person!
- It isn’t something that you can replace with cash – which means it could potentially provide additional income for you in case one of your family members gets sick or injured and needs medical treatment.
3. Conclusion
Before we go any further, there are a few things to consider when it comes to buying insurance. First, there are four general types of insurance:
- policy
- life
- health
- property/casualty
This simple breakdown can be very helpful in deciding which type of insurance is best for you.
