5 Must Have Insurance Policies

5 Must Have Insurance Policies

5 Must Have Insurance Policies

5 Must Have Insurance Policies – The principal objective of insurance is to protect what’s most important to us, life, health, home, properties, workplace, etc. Insurance is a must in many cases but a lot of Nigerians choose to do without it and this is a huge mistake for everyone that owns an asset of any kind.

However, the correct insurance policies guarantee the safety of your properties.

What Is Insurance?

According to Wikipedia, it define Insurance as means of protection from financial loss. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss. An entity which provides insurance is known as an insurer, insurance company, insurance carrier or underwriter.

Purpose And Need Of Insurance?

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We need insurance because we are exposed to various kinds of risks and the purpose of insurance is to protect us from the loss caused due to those risks. Insurance plays a significant role in the development of the nation’s economy by providing the capital and it converts the uncertainty into certainty and thus brings mental peace to the individuals.

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Although insurance requirements vary from person to person, but here are five must have insurance policies that everyone should have

1. Life Insurance Policy

It is true that a lot of people do not believe in life insurance. They believe since it won’t bring them back when they are gone so what is the purpose of life insurance. But the truth is, life insurance isn’t there to protect us; it’s there to help our loved ones transition when we’re gone. Think about your loved ones and your children, you wouldn’t want to leave them stranded with almost nothing when the inevitable happens however late.

No one is wishing to be gone so soon, but the point is, if you have any dependents, you should have life insurance. Even if you don’t have any dependents, life insurance can still give you peace of mind when you get older.

2. Disability insurance

Not everyone is familiar with this insurance policy, but it’s also important. We all understand the importance of life insurance yet many of us overlook disability insurance. Disability insurance is there to protect us in the event we are unable to work for an extended amount of time. It’s a must have insurance since it protects our greatest asset, which is our ability to earn an income.

3. Travel medical insurance

A lot of people totally ignore this in Nigeria. We forget that anything can happen when we travel out of the country. We could decide to try out a new recipe without knowing if the ingredient is completely safe for us, we could fall under the weather no matter how favorable it is. The point it anything can happen when we are not in our home country and you would not want to spend your money on medical bills outside your home country. This is not because the health care is not good enough, but it’s usually very expensive and I’m quite certain you did not plan to spend your shopping money on medical bills.

Therefore, if you would be traveling, then you should have a travel medical insurance in place.

4. Automobile insurance

This is the most common insurance but a lot of people still ignore it. Automobile insurance is not just important in cases of car accidents only. You don’t need to be involved in an accident before getting a car insurance. Other scenarios like car theft, heavy flood that could lead to the damage of your car, among other reasons are why you should get an automobile insurance. You also need a car insurance not just for you but for other people in case you get into an accident and you damage someone’s property, or cause personal injury. You could face huge bills or a lawsuit if you have no insurance to pay for the damages. Now imagine you got a loan to buy your car and you ‘forget’ to insure it before a bad incident happens.

Another simple reason why automobile insurance is a must have insurance is that it’s illegal to drive without it. Therefore, protect yourself and your wallet from the pain of owning a car without an insurance.

5. Home insurance

The odds are you won’t ever need to claim insurance for damage to your home but imagine the costs if you did? You never know when fire or flood could strike so don’t skip out the house insurance.

In the event of theft, your home insurance will cover your contents which will give you peace of mind. The cool thing about home insurance is that it carries over when you’re travelling. So if you bring your laptop and camera on a trip and it gets stolen, you’ll still be covered. Just factor in the deductible and figure out if it’s really worth making a claim.

Technically speaking all of these policies are optional but you’re taking a huge risk by not having them in place. Think of it this way, if your property can be destroyed, then it should be insured.