5 Types of Insurance You Can’t Go Without

There seems to be insurance for everything, right? There are celebrities who get various parts of their bodies insured just in case – and people who insure their prize-winning pets. There’s probably fifty different types of insurance when it comes to wedding planning – if you have ever planned one, you’ll agree that most of them are necessary in order to give you peace of mind. And some other types of insurance – like the infamous alien abduction insurance, are downright frivolous.

But what types of insurance do you actually need and shouldn’t go without? A lot of people these days struggle to afford basic health insurance but they know that going without it might actually cost them more in the long run, or can even mean bankruptcy in extreme cases of illness or injury.

We have listed the 5 types of insurance that we think you really shouldn’t go without – we have listed them and done the research – what will cost you more if heavens forbid the alignment of the planets don’t go your way?


Life Insurance

This type of insurance might not be on your immediate list of insurances you get – after all, life insurance doesn’t affect you when you’re dead. It’s not like you will have an extra life delivered (much like your cat does). But whom does it affect?

Your family. Life insurance can not only pay for a funeral. It’s a substantial cost, and a lot of families that aren’t prepared for a loved one’s death in the event of an accident or sudden illness can be forced to make emergency loans. Talk about a lack of closure.

If you’re getting your life insurance in Canada, the United States or England, the payout will not be taxed. And according to Anarak Life Insurance, you can even adjust the payouts to include things like your kids’ tuition.

We think that getting the bare-bones life insurance is a must.


Health Insurance

Health insurance is probably even more important than life insurance – to you, personally. After all, having great health insurance will prevent you from needing life insurance for as long as possible.

It’s important to consider your age, gender and the necessary things that the insurance should cover. The important thing is never to assume that you’re in total control of your life. Because you’re not. Accidents happen, but so do illnesses and pregnancies – did you know that a lot of women opt out of the pregnancy option in an insurance plan simply because they might not be thinking about pregnancy at the moment? When you’re in the middle of trying, it’s often too late to get a good deal. This applies to everything when it comes to good health insurance.

We’ll leave you with a thought – even if you think you’re invincible, it’s important to have regular check-ups that are hassle-free and covered by insurance. They might not make you immortal but will make you a whole lot more invincible indeed.


Flood Insurance

A flood is a gamble – if you live in a place where there have been known floods in the past 200 years, better be safe than sorry. There are clearly marked flood danger zones – some places will even require you to have flood insurance when you buy a new property.

Don’t be fooled by your particular zoning not requiring flood insurance. Also, if you’re renting – check with your landlord if they have it. A lifetime’s worth of belongings isn’t worth one bad decision. Why are we so adamant about it? A lot of zoning laws are made to help developers. Sometimes, a strict flood insurance guideline might raise their costs too much.

This is especially important if you live near a hurricane area, a river or the coast. Check the history of a property if you’re a new buyer. Many times, cities allow aggressive rebuilding after disasters like floods – if you are in the danger zone, this insurance is a must-have.


Fire Insurance

With the brutal wildfires ravaging the US and Australia, it’s time to turn our eyes to fire insurance. Areas that we thought were safe and quiet urban, like California’s wine country cities are now in danger of serious firestorms.

If you are forced to evacuate in moment’s notice, what can you take with you that money can’t buy and what is replaceable but expensive? Fire insurance will not only help you rebuild but will help you to replace valuable objects like laptops, phones, clothes or even your car.

Let’s forget about epic fire-related disasters and think about if you left your stove on this morning. If you had to think about that for longer than 2 seconds, this insurance is for you.


Auto Insurance

Thankfully, this insurance is part of the law. You have to have it. And we think it’s absolutely, 100% necessary. But you do get a choice. The law says that you have to have the basic insurance – this way, if you cause an accident, the innocent victim can get paid.

But what about you? We think that on top of this being one of the topmost important types of insurance you can get, this is absolutely the one you should splurge on. Go crazy. We know that it’s more expensive – but if you’re in a hit and run while parked on a busy street, or if you’re involved in an accident that’s your fault (it’s everyone’s fault in real life, isn’t it?) you won’t be left empty-handed.

If you’re worried about the cost, think about how much it will cost you to find a new car, or rent a car while trying to scrape together money to have costly repairs done. How will you get to work? Is biking in the rain really all it’s cracked up to be? It’s paying it forward to yourself.


Get Insured!

Insurance shouldn’t be a luxury. All of these types of insurance we have listed are important real-life necessities because they will save you a lot of money in the long run. And after all – aren’t all types of insurance things that you hope you never have to actually use? Don’t gamble against yourself – it’s too easy to lose big.

Disclaimer: This article contains sponsored marketing content. It is intended for promotional purposes and should not be considered as an endorsement or recommendation by our website. Readers are encouraged to conduct their own research and exercise their own judgment before making any decisions based on the information provided in this article.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.