Life comes with unexpected events, and there’s no question about that. But when the accidents happen, whether you have insurance or not will matter a lot. Read more information about insurance when you click here.
Insurance will act as a buffer for unexpected expenses and emergencies. Most people know that having this kind of security means that they will be prepared in times of crisis. However, not everyone knows that there are different types of assurance plans available out there and how these can impact their lives.
Some of the most popular types available are the following:
1. Health Insurance
Everyone needs a health plan to pay for hospital bills and medical expenses in times of unexpected illnesses. Healthcare is costly, and when you add maintenance and prescribed medicines, the bills can become overwhelming. When you factor in surgeries, daily hospital stays, and routine check-ups, expect everything to pile up in no time.
When you are a policyholder, the good news is that you can walk out of the hospital free from bills and debts. This is because your insurers will pay for the costs of your hospital stay. For some people, they don’t even have to pay anything from their pockets for the duration of their stay. But not all insurers can cover all costs, but some pay for at least a considerable portion of the bill. You may want to read first the terms and conditions before signing into anything.
2. Vehicle Insurance
Your vehicle is prone to unwanted accidents every day. When you are insured, you will have the peace of mind that any damages can get repaired in no time without you needing to spend anything. Most policies cover theft, collision, vandalism, and accidents, so you may want to get an assurance plan before these things happen.
If you got your car under a loan, you would not have to continue paying for it once it got stolen – which is an unfortunate situation for anyone – but this is an excellent example of how insurance can help you. The coverage can include trucks, motorcycles, cars, and other vehicles that are under your possession. If you also get into an accident resulting from driving the vehicle, getting medical assistance for your injuries may get covered if it’s part of your agreement.
3. Life Insurance
People who have dependents need life insurance so that their loved ones won’t struggle financially even if they can no longer work or they have an accident. In extreme cases, the policies cover funeral expenses, estate planning, and other unexpected costs that resulted from death.
Life assurance plans are contracts between an assurer and the policyholder. The assurer promises to pay a fixed amount to the beneficiaries upon the death of the insured family member. These are all in exchange for a monthly premium. Other events, such as critical illnesses can trigger the payment of the plan.
Assurance plans on mortgage protect the titleholder in the event of default payments from the borrower. When the borrower dies, the heirs are protected even if there’s still money owed on their apartment or townhouse. The plan can either pay the heirs or the lender depending on the agreed terms.
These types can have typical pay-as-you-go premiums, and other companies require lump sums. Different types will protect the borrower in cases of title invalidation. There are cases when two people own the title for the property, and the sale is invalidated. You can know more about mortgage insurance on sites like low.ie, where you can choose the best types of plans that you need for your property. The title insurance protects the beneficiaries from possible losses.
Possible Scenarios where Insurance are Needed
You may have a neighbor that suddenly met an accident and died. He left behind a wife and three kids, plus two older parents in his household. Your friend doesn’t have enough savings to cover the needs of the family. He barely has money in the bank to pay two months of food and rent. Life insurance will have ensured that his family will receive enough money to spend every month.
You might have caught the flu in the office. However, you can’t put off work as you are looking to close a big deal this month. Eventually, the flu worsened, and it escalated into pneumonia. You went into the hospital to be admitted, and they say that it will take at least two weeks for you to recover.
The total expenses were over $800 for the hospital stay and about $150 for the treatment. A $50 health coverage could have saved you from paying all of these, and the total out-of-pocket expenses that you may have incurred was $0.
You drove to work like any other day. However, there’s an unexpected oil spill on your way to work. The car near you suddenly became out of control and hit your vehicle. The headlights and the bumpers were damaged.
The bumper repair costs are about $132 and for the lights, you may need another $92 for replacements. The average price of $99 of auto insurance a year should have paid for the repairs and replacements if you have one.
These are not the exact figures, but it will give you an idea of why you need insurance. When you are protected, everything gets easier. You have cushions for accidents, emergencies, and health problems. You know that you can afford to get the best possible treatment in case of health issues, and your family will have a financial backup that will help them get back on their feet when you pass away.