Photography: 123rf Stock Photos
We fear a lot of things. Fear of losing the motorcycle or car from theft. Fear of accidents that result in high repair cost to the vehicle. Fear of damage from fire or flood or from other natural disasters. Fear of being seriously ill. Fear of death and leaving people who are still under our care.
But, fear not! We can sleep comfortably, without worrying about the risks that can happen unexpectedly and cause us financial loss. There are companies out there who are willing to take these risks - and with that, erase our worries - for a fee.
These companies are insurers and the fee you pay them is called insurance premium. The insurance company will pay you an amount of money to compensate the majority of your financial loss from a risk event.
How many types of insurance are there?
1. General insurance covers risk of loss from accidents, theft, natural disasters, and civil unrest to physical properties.
2. Health insurance covers medical care in hospitals and other healthcare providers.
3. Life insurance pays when there is death in the covered period.
4. Life assurance covers the entire period of your life and pays out upon death.
Which insurance do newlyweds need?
This is probably best answered by each individual or couple, because the needs vary and not everybody shares the same fear of financial loss to a risk event. However, here are some guidelines:
1. If you have a mortgage on your home or car, it is a good idea to buy general insurance to protect you from unexpected losses.
2. If your severance package at work does not include health coverage, it would be a good idea to get health insurance to cover risk of serious illness.
3. If you think you want to start a family right away, it is best to consider getting a life insurance or a life assurance. You would want to protect your family from sudden loss of income.
Where should we get our insurance?
There are insurance companies that are willing to cover the risks we fear in life and pay for our financial losses. We need to make sure that the insurance companies we select are financially healthy and are known to pay claims quickly when we need it the most. Most large and global insurance companies are pretty good bets.
