Your Protection Portfolio
No one likes to think about the possibility of serious illness, natural disasters, job loss or death. Nonetheless, these events do occur, frequently despite your best efforts to prevent them. One way to lessen the adverse effects such events have on your life is through purchasing insurance policies. Obtaining protection from term and whole life insurance, health and disability insurance, homeowners and renters insurance and automobile insurance helps to ensure that if you do suffer a catastrophe or disaster, you will at least have the financial means to restore as much of your former life as possible.
Term and Whole Life Insurance
The term â€œlife insuranceâ€ is ironic, because life insurance typically pays benefits only upon the death of the policy holder. However, a life insurance protects the lives and financial well being of the policy holders survivors. Many younger people opt for term life insurance, which allows them to purchase more coverage with lower premiums than a comparable whole life insurance policy. On the other and, many older individuals find that they are unable to qualify for term life insurance due to underwriting requirements. Individuals who are nearing or past retirement age may choose term life insurance as one aspect of an overall retirement financial portfolio.
Private Health Insurance
Even though the UK, like much of the developed world, provides health care to its citizens through a government-run health system, private health insurance is still available. With a private health insurance policy, you have more flexibility in scheduling tests, obtaining treatment from specialists and bypassing waiting lists. However, private health insurance policies often contain clauses that bar coverage for treatment of preexisting conditions, or for treating injuries from participation in extreme sports.
Driving a car without a proper braking system is almost asking to be involved in an accident. Likewise, driving without adequate insurance coverage is like asking for a lawsuit, or perhaps loss of your license. Third party coverage is the minimum type of auto minimum coverage required by the UK, although only about twenty-five percent of vehicles in the UK carry this minimum level of coverage. The remaining seventy-five percent of vehicles carry comprehensive coverage. Comprehensive coverage provides more extensive coverage against legal liability and damage against fire or natural disaster. The most comprehensive of comprehensive cover polices provide the means to purchase a replacement if your car is declared a total loss.
Homeowners and Renters Insurance
Owning a home is the dream of many individuals. However, home ownership can become a nightmare if you are faced with the after effects of a break-in, fire, or damage from a natural disaster. You may also face legal liability if a visitor suffers serious injury while on your property. Homeowners insurance is a must to protect yourself from legal liability and to restore your home or possessions in case of loss.
Renters are not legally liable for accidents or injuries that occur in the common areas of their residences. Nonetheless, like homeowners, renters also face the possibility of loss from theft, fire or natural disaster. If you are a renter, a renters insurance policy can help you replace your possessions if they are damaged or stolen.
Why You Need an Insurance Portfolio
If you are dealing with a limited budget, you may be tempted to skimp or skip obtaining one or more types of insurance coverage. In some instances, this strategy presents minimal risk. For instance, because of the national health insurance system, you could conceivably get by without purchasing private health insurance. If you have a very old car that is not worth much, minimal third party car insurance is adequate.
However, in many instances, attempting to save money by skimping or skipping insurance coverage is foolish and irresponsible. For instance, while a homeowners insurance policy can represent a significant expense, having a policy in place could allow your family to rebuild if your home is badly damaged by a natural disaster. Likewise, if you have a partner or a family, failing to provide for the financial well being of your loved ones in the event of your death could add financial devastation to the grief your death would cause. A better budget-sparing strategy would be to purchase a term life insurance policy rather than a more expensive whole life insurance policy.
Sam Jones the author of this article was recently looking at level term life insurance policies and found http://www.uswitch.com/life-insurance/level-term-life-insurance/ website from uSwitch offered a vast amount of useful information.
This article is copyright free.