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Types of personal insurance
Consider the coverage you need to fit your family and lifestyle.
Protecting your health, property and your family’s future can mean the difference between money trouble and financial security. Finding the right policy depends on your income, dependents and needs.
What is personal insurance?
Personal insurance is any insurance that protects you from having to pay out of pocket for accidents, illness or damage to your property. To get insurance, you agree to pay a monthly or annual premium in return for a payout when you need it.
Types of personal insurance
Personal insurance can provide protection and peace of mind for you and your family. You can buy multiple policies separately or save money by bundling a policy with one insurer. Which types of insurance you need depends on your income, dependents and lifestyle.
Car insurance is important when you’re on the road, no matter who’s to blame for an accident. It covers damage to your car in an accident in exchange for regular payments. Basic coverage includes:
- Bodily injury that covers the cost of another person’s injuries from an accident you cause.
- Property damage that covers damage you cause to someone else’s property in an accident.
- Personal injury covers medical services after an accident, regardless of fault.
- Uninsured motorist covers costs caused by a driver if their insurance can’t pay enough.
Home and renters insurance
Home, content and personal valuables insurance can be tailored to meet your specific requirements. No matter if you own the home yourself or if you are renting from a landlord, you will find this type of insurance policy can be structured to fit in with your particular needs. Home and renters insurance can:
- Provide a payout for your valuables in the case of a break in or damage.
- Protects you if someone is injured on your property.
- Pay for damage caused by a storm or other accident.
The most basic type of life insurance pays a lump sum benefit to your beneficiaries when you die. That money can be used to:
- Pay for funeral costs.
- Pay off your mortgage and any other debts.
- Cover the loss of your income and help with day-to-day expenses.
- Pay for your children’s education.
- Cover any other extra expenses your family might have
Travel insurance is great for vacations, business trips, or anytime you plan on traveling away from home. Travel insurance can protect you if you need to:
- Cancel your trip unexpectedly.
- Receive urgent medical care.
- Replace items if you lost your luggage on the flight.
Disability insurance, also known as income protection insurance, pays a percentage of your income if you’re temporarily or permanently disabled and can’t work.
Disability insurance can:
- Help you pay for nursing care and physical therapy not covered by your health insurance.
- Cover some or all of the cost of renovating your home to fit your current needs and lifestyle.
- Pay for day-to-day expenses if you’re unable to work.
Critical illness insurance
Critical illness insurance pays you a lump sum benefit if you’re diagnosed with a critical illness such as heart disease, cancer or stroke. Insurers may have different guidelines for which medical conditions qualify, so check the fine print before purchasing a policy.
Critical illness insurance can:
- Pay for copays, deductibles and medical expenses not covered by health insurance.
- Pay for physical therapy and in-home nursing care.
- Cover bills and other expenses while you’re unable to work.
If you own a property to rent out, then landlord protection insurance is a valuable tool to have in your insurance portfolio. Landlord protection insurance can insure you against:
- Financial loss if your tenant misses rent, steals or damages your property.
- Legal liability claims made by anybody on the property who suffers an injury.
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Getting insurance to cover your risks can protect you from a financial hardship if the unexpected happens. Consider your lifestyle, risks and income to determine which insurance is right for you.
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