Insurance: When Is It Necessary?


Insurance is indeed a tricky matter, not quite easy to comprehend or sometimes even claim! There are more insurance products in the markets than one actually needs, making the choice quite overwhelming. While insurance coverage, in general, eases the financial burden on the policy holder during dire situations, it is not necessary to buy up every other policy that professes extensive coverage. Some insurance products, however, are a must-have for everyone.

Home/Content Insurance

Irrespective of whether you are a home owner or tenant, signing up for insurance that covers home contents or your belongings against burglary, fire or other disasters often proves handy, especially if the home is well-furnished. As home insurance ideally covers both the building and its contents, it is not relevant unless you own the property. However, securing belongings and valuables is a must! Do note that home insurance does not usually cover damages caused by floods. If you reside in a flood-prone area, do not hesitate to invest in flood insurance.

Health/Disability Insurance

Given the rising costs of medical care, health insurance proves useful to manage a range of medical expenses of the entire family. Disability insurance is, of course, a must for earning members of the family as it offers financial relief to the family when the policy holder is injured or incapacitated and cannot get back to work.

Life Insurance

Your life is precious, more so if other people in the family are financially dependent on you. Buying up life cover ensures that your family’s financial needs are addressed to some extent in the event of your death. Do note that the maturity value of the life insurance policy tends to vary based on the product you choose and the premium paid up.

Both disability and life insurance is usually offered by employers, but you are free to take up additional cover if you can afford the premiums.

Gadget Insurance

Technology has become part and parcel of contemporary lifestyle, introducing a mammoth range of electronic gadgets into offices and homes. Many of these expensive gadgets also serve as stores/sources of personal and business data that need to be secured. Business houses must opt for gadget insurance specific to their business to guard against loss or damage of stationery and portable gadgets used for office work.

With Apple just ramping up repair costs across the iPhone range, other manufacturers may soon follow suit. In a few cases, phone batteries have reportedly heated up/exploded causing serious damages as well.

Shop for a suitable product and read the fine print as some insurance products do not cover theft, and a few others may not include water damage!

Vehicle Insurance

Auto/vehicle insurance is valuable if you own a vehicle and use it on public roads. If the 2014 Vnuk ruling of the European Court of Justice were to be enforced in UK, even off-road vehicle users may most likely have to take up vehicle insurance.

Insurance products abound in the marketplace. Remember, not every product is applicable to you!