Insurance is vital to any financial plan– from securing your car, house, and health to providing security for unforeseen events. In Canada, several types of insurance are available, making it difficult 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 situation happens. That’s why it is wise to invest in various kinds of coverage to ensure you have the protection you need if the unexpected occurs.
You should also note that some insurance coverage are required by law in Canada. For instance, drivers must have auto liability insurance to operate a car lawfully.
Eventually, the type and amount of protection you need depends on your unique situation. If you’re unsure what type of insurance is best for you, consider speaking with an insurance representative, broker, or financial consultant who can help provide recommendations and guidance.
Types of Insurance in Canada You Should Get
1. Property Insurance
Property insurance protects your house and other personal items from damage or theft. It can help cover your expenditures in repairs or replacements if necessary due to a covered event. Depending on the type of policy you choose, it could also provide liability coverage if someone is hurt on your property and takes legal action against you.
This type of insurance can include a few policies, such as:
- Homeowners insurance
- Renters insurance
- Flood insurance
- Earthquake insurance
Your personal possessions are typically covered under homeowners insurance. The exceptions can include high-value or costly items. These may fall under an extra policy called a “rider.” You may read more about home insurance coverage 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 costs, including:
- Prescription drugs
- Vision-care needs
- Dental treatments
- Emergency travel medical services
- Medical equipment
3. Auto Insurance
Auto insurance offers financial security if you are involved in a car accident. It helps cover the cost of replacing or repairing your car and any medical expenses resulting from the accident. Auto insurance also provides 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 obligatory in many provinces, whereas property insurance is generally optional. Additionally, premiums for auto insurance are commonly much higher than property insurance because it covers more risks than just theft and damage to your car. You may browse the web to learn more about what to do when your car gets broken into.
4. Life Insurance
After starting a family, consider getting a life insurance policy. It gives financial security to your loved ones if something occurs to you. If you suddenly pass on, it helps ensure they won’t be left with hefty expenses and financial duties.
The most common types are the Term life insurance policies, protecting over a set amount of time (generally 10-30 years). These policies typically have lower premiums than irreversible life insurance, making them more available for those on a budget. A McConville Omni personal insurance company can help you in cases like this.
Keep in Mind
When considering insurance policies, it’s essential to research and understand the coverage you need for your specific circumstance. Do not think twice to ask questions or consult a financial advisor or an insurance representative if you need help. Remember: the right insurance policy can provide peace of mind and financial security in the face of unforeseen events.