While some insurances are needed, others may not. There are many different types of insurance cover for different aspects of life, but it can be confusing to know which ones you do and don’t need. Especially when you are trying to live by a budget.
Have a look below at some of the insurances you do need and those that you don’t or could do without:
This is essential insurance if you partner, children and other dependents rely on your income to cover things like the mortgage and other living expenses. Life insurance will either make regular payments or a lump sum to them if you were to die. However, it won’t payout if you are unable to work due to injury or illness, you will need income protection for this sort of cover.
Before you take out any life insurance policy, you need to make considerations about your personal circumstances. Think about things like how long you need the cover for. If you only need the cover until the kids are 18 or until the mortgage is paid off you could consider a fixed-term policy. Make sure you shop around for your life insurance as you can find some reasonable prices.
Contents And Building Insurance
This type of insurance is usually a condition of a lease or mortgage, it covers damage to the structure of your home, and contents insurance covers the majority of your possession. You will normally pay extra if you want to cover damages that happen accidentally or outside of the home.
If you think about the cost of treatment for your pets, and couldn’t afford an unexpected bill or ongoing treatment, then you should definitely consider pet insurance. Expenses can add up very quickly, especially if your loved pet develops a life-long condition.
If you drive a motor then you should have insurance. A good policy will cover you for areas like windscreen damage, theft or loss of your keys, and the recovery of your motor from an accident. Make sure you look over all the details before you sign the dotted line.
When making any claims on insurance policies it’s worth contacting a public adjuster to ensure you get the right payout.
There are insurances that you could really do without too, especially when you are on a budget:
If you are already paying for contents insurance, you may find that your phone is already covered, it could also be covered with extras on your bank, especially if you are paying a monthly fee. Before you purchase phone insurance make sure you aren’t already benefitting from this somewhere else.
In most cases, you have cover provided by the manufacturer’s standard warranty or in some cases the top-up warranty that is also provided by the retailer. Learn about the life span of your product, and figure out how long you have from the free warranty before you purchase additional cover.
Payment Protection Insurance
If you aren’t likely to miss payments on your credit card because you have lost your job, for example, you probably don’t need this.
These are just a few of the main insurances that you do and don’t need in everyday life. As you can see, if you make careful considerations it’s possible to make sure you are covered even when on a budget.