5 Types of Insurance You Need in Your Lifetime

Life insurance:

This type of insurance protects people that are financially dependent on you. If you want to give your family peace of mind financially you should get a policy that will replace your income in the event of your untimely death.

There are two basic kinds:

Term life insurance– this provides a benefit upon the death of the policy owner for a set period of time. This type or cover is relatively inexpensive.

Permanent life insurance– includes a variety of products such as whole life, universal life and variable life. You get lifetime coverage with this type of insurance.

Car insurance:

In South Africa, you can get Comprehensive, Third Party, Fire and Theft and Third Party Only cover.  Rates that you are charged will vary and are dependent on factors like your driving record, the type of car that you drive, you credit rating, where you live and how long you’ve been driving.

If you own a car, you should have at least the minimum amount of insurance required. Having car insurance will protect you against personal injury claims, which can run into millions of rands.

Travel insurance:

Most types of travel insurance provides cover for emergency medical aid expenses, personal liability, lost or stolen bags, costs of cancelling , delaying or cutting your trip short.

There are five main categories:

  • Trip cancellation
  • Travel medical
  • Major medical
  • Emergency medical evacuation
  • Accidental death/flight accident

Home insurance:

You should have a policy that can cover most of the replacement costs of your home. This type of cover is usually divided into Buildings insurance and Home contents insurance.

Health insurance:

Health insurance may not be cheap but is an essential type of cover you should have. It may generally be more affordable if one gets it through their employer.

 

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