Insurance is essential to any financial plan– from securing your car, home, and health to providing security for unforeseen events. In Canada, various kinds of insurance are available, making it tough to choose which ones to get. But do you even need insurance in the first place?
Do I Need Insurance?
Without insurance, you’re left with potentially significant expenditures when an unfortunate event happens. That’s why investing in various types of coverage is wise to ensure you have the protection you need if the unexpected occurs.
You should also note that some insurance policies are required by law in Canada. For example, drivers must have auto liability insurance to legally run a car.
Ultimately, the type and amount of protection you need depends on your unique situation. If you’re unsure about what kind of insurance is best for you, consider speaking with an insurance representative, broker, or financial consultant who can provide advice, suggestions, and assistance.
Kinds of Insurance in Canada You Should Get
1. Property Insurance
Property insurance protects your home and other personal items from damage or theft. It can help cover your expenses in repairs or replacements if necessary due to a covered event. Depending on the kind of policy you choose, it might also offer liability coverage if somebody is hurt on your property and takes legal action against you.
This kind of insurance can include a couple of policies, such as:
- Homeowners insurance
- Renters insurance
- Flood insurance
- Earthquake insurance
Your personal possessions are generally covered under homeowners insurance. The exceptions can include high-value or pricey items. These might fall under a different policy called a “rider.” See house insurance in London, ON, to learn how it works.
2. Personal Health Insurance
Personal health insurance secures you from unanticipated financial losses due to an illness. It can help pay for health-related expenditures, including:
- Prescription drugs
- Vision-care needs
- Dental treatments
- Emergency travel medical services
- Physiotherapy
- Medical equipment
3. Auto Insurance
Auto insurance provides financial security if you’re involved in a vehicular accident. It helps cover the expense of repairs or replacement of your car and any medical costs resulting from the accident. Auto insurance also offers liability coverage to secure against legal action taken by another party if someone is hurt in a crash you caused.
The difference between auto insurance from property insurance is that auto insurance is mandatory in many provinces, whereas property insurance is generally optional. Moreover, premiums for auto insurance are generally much higher than property insurance because it covers more risks than just theft and damage to your car. You may browse the web for more information on what to do if someone breaks into your car.
4. Life Insurance
After starting a family, you must consider getting a life insurance policy. It offers financial security to your loved ones if something occurs to you. If you suddenly pass away, it helps ensure they won’t be left with hefty bills and financial duties.
The most common types are the Term life insurance policies, protecting over a set period of time (usually 10-30 years). These policies generally have lower premiums than permanent life insurance, making them more available for those on a budget.
Keep in Mind
When considering insurance policies, it is essential to research and understand the coverage you need for your particular situation. Don’t think twice to ask questions or speak with a financial consultant or an insurance representative if you need help. Remember: the right insurance policy can offer peace of mind and financial security in the face of unforeseen events.
