Your handle on insurance ⚒️
Kia Ora Friend,
House burned down? Major operation needed? These are all things that we don't expect happen to us. But, sadly, they do.
And what's there to save you financially?
Insurance... for some people its the seat belt they wish they wore before the impact.
After you have sorted your:
time to look at insurance.
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Why should you have Insurance?
There will be scenarios you come across in life that can cripple you financially. Insurance can stop this from happening... most of the time.
Additionally, insurance provides a psychological benefit. Instead of tiptoeing your way through life, you have the comfort, knowing you will be covered.
What types of Insurance can I get?
The most common personal insurance include:
Vehicle - Your car can be insured for third party, fire and theft, or comprehensive (order from cheapest to most expensive). Go the most comprehensive unless you can't afford it or your car is worth almost nothing
Contents - Insure your valuables. Some policies can cover belongings damaged or lost throughout the country as well. More expensive items (e.g. a fancy camera) are insured separately bumping up the insurance costs
Health - Why insure your car, your home or your things when you are the most important asset
Life - When you go, who is going to take care of your dependents. And can you afford to leave your partner (already morning your loss) with the mortgage?
Travel - Make your holiday a bit more enjoyable when you know you will be covered if something goes wrong
What costs for Insurance?
There are two costs to consider:
Premium - this is a regular payment either fortnightly, monthly or yearly
Excess - this is a lump sum you pay when making a claim
How do I make the most out of Insurance?
Here are some tips:
Cover things you cannot afford
If unsure, over-insure - you are paying for people who have been devastated so don't feel too bad
Be honest. I'll say it again, please be honest.
Having an emergency fund allows you to have a higher excess which reduces you premiums
Pay your insurance yearly if possible
Claim only if you really need to. So that's for big things
By now, insurance is something you should consider or already have. If you want more detail, I have written a post on this topic.
As a disclaimer, I am not a financial or legal expert on insurance. I would advise you to perform your own research or seek a financial professional for any major decisions.
If you found this useful, please spread the word by forwarding this on to family and friends. Thank you for reading.
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All of us waste precious life doing things we don’t like, to prove ourselves to people we don’t respect, and to get things we don’t want.
Ryan Holiday, Ego is the Enemy