In this day and age, getting the right insurance is essential. To refresh your memory: insurance cover is the equitable transfer of the risk of a loss, from one entity to another in exchange for payment. It’s a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss.
Today I’m covering the 6 Fundamental Insurance Principles: Auto, Home, Health, Accident, Casualty and Life. It’s just an outline really of the various ways in which insurance could protect both you and your belongings.
Auto: If you have a car, bakkie, truck or motorcycle you should definitely consider insuring them. You could be involved in an accident, your mode of transport could be stolen or someone could break into your vehicle and steal your belongings. There are various kinds of auto insurance, so make sure that you choose the package that suits your lifestyle and your pocket.
Home: Ensuring your household contents and valuables is essential. You don’t want to spend your hard earned cash on new stuff if you’ve been the victim of a break-in, robbery or natural disaster. Household insurance won’t cost you an arm and a leg, so make sure that you’re covered in case a burglar decides to target your suburb or Hurricane Daisy decides to sweep through your neck of the woods.
Health: This kind of insurance is basically coverage that provides for the payments of benefits as a result of sickness or injury. This includes insurance for losses from accidents, medical expenses, disability or accidental death and dismemberment.
Accident: Do you work with your hands? Are you a tradesman? Do you work in a factory with heavy machinery? If you’ve answered yes to any or all of these questions you should definitely consider this kind of insurance which covers bodily injury or death because of accident.
Casualty: This kind of insurance is often equated to liability insurance. It’s not directly concerned with life insurance, health insurance or property insurance. It’s mainly liability coverage of an individual or organization for negligent acts or omissions.
Life: This kind of insurance is a protection against the loss of income that would result if the insured party passed away. The named beneficiary receives the proceeds and is thereby safeguarded from the financial impact of the death of the insured. If you’re married, the beneficiary would probably be your spouse (so she/he can look after the kids financially when you’re gone).
Check out this helpful infographic below that sums up all the information you’ve just read:
Well, there you have it. The 6 Basic Insurance Solutions. I hope that this has opened up your eyes and that you’re not completely in the dark if someone asks you what they are.
Insurance is one of those things that we all love to hate – but we can’t live without it.