3 types of insurance everybody needs and their benefits

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portrait of happy african pediatricians with mother and baby after checkup

The uncertainty of life is one of the most certain things about it. In other words, we can count on life to throw expected challenges at us, and change in one too many ways at any point in time. While is great to live and flow with contingencies when they come or cross deadly bridges as they approach, foresight is a tool that can save. In this part of the world, insurance is something that is largely downplayed. For the sake of being smart or politically correct, a lot of us would rather seek out ways to prove that insurance companies are benefiting more from us than our potential gains – you can never be more wrong! You are at the mercy of possible risks day in day out and very few things can hedge your fall or indemnify you against the full impact of some of these contingencies. Insurance is one of them. Insurance is simply a risk management system that protects you in the event of financial losses. The following are some of the most important types of insurance to get and their benefits:

  • Health insurance
portrait of happy african pediatricians with mother and baby after checkup

There’s a popular health insurance saying that puts this in perspective: “you’re one tough illness away from bankruptcy.” In essence, it doesn’t matter how great your overall health is, you can lose everything peradventure you do get seriously sick. It is the type of insurance that is taken out to cover the cost of medical care. Put plainly, if you get a good insurance company and commit to paying premiums, you have the benefit of your medical expenses, and possibly that of your family members, totally covered. Hence, health contingencies would not affect the state of your finances. Other benefits of health insurance are that it gives you the opportunity to take medical check-ups, prevents you from the stress of random emergency rooms, and offers you better rates than out-of-pocket expenditures.

 

  • Auto Insurance

Auto insurance or car insurance is the insurance for cars, trucks, motorcycles, and other vehicles on road. It is so important that it has been made compulsory in various parts of the world – including major parts of Nigeria. This is because not only can you pose a risk to yourself by plying the road without any form of protection, you can also put other people at risk if you’re not covered. If you’re on a comprehensive auto insurance plan, your car can be replaced if it gets stolen, the insurance company could cover repairs on both your car and that of a third party, your car would be repaired where there are natural issues like flood or tsunamis, and so much more.

 

  • Life Insurance/Assurance

Life assurance is the insurance that pays out a sum of money either on the death of the insured person or after a predetermined period of time. The person being insured has the obligation of consistently paying the life insurance premium in other to derive its incredible benefits. Death benefits are tax-free, so the recipient gets the full sum. Benefits can be flexible to the needs of the insured, burial expenses are covered when the insured dies, the insured gets to leave something for his or her family members, and so on. As long as you get a good policy, you are literally covered for life.

BY: LAWRETTA EGBA

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