What different types of insurance are available to me?

Throughout your life, you are going to need different types of insurance to protect you and your loved ones from unforeseen circumstances. The following video will give you an idea of the different types of insurance you can purchase. Once you’ve taken a look at this, let me know if you would like to discuss this further. Otherwise, I can get you in touch with a specialist to determine if your insurance needs are met.

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Video transcript

Insurance is a broad topic with many aspects to cover. It can be tricky to navigate as each individual has a unique situation, and insurance can and should be tailored to your needs.

Are you wondering what types of insurance you might need? Today, I’m going to go over some of the most popular types of insurance. This isn’t an exhaustive list, but it will give you a foundation to start thinking about what types of insurance you might need for you and your family.

Health insurance

Health insurance covers medical expenses. They are often included as an employee benefit. In Canada, you may also purchase supplemental coverage for services that are not covered by the government.

Life insurance

A life insurance policy will provide financial assistance to your beneficiaries upon your death. This is called a death benefit and is received tax-free. It can help your family continue to live at the standard they are used to. Some of the things a death benefit can do are:

  • Pay for your funeral
  • Provide for your children
  • Donate to charity

Property insurance

Property insurance is a very broad category. Its purpose is to provide financial reimbursement to a property owner or renter in the event that there is damage or theft. Beyond this, it can also provide coverage in the event that an injury occurs on the property. 

Homeowners insurance is for owners of property and tenants insurance is for renters. There are also a variety of specialized versions including, but not limited to:

  • Flood insurance
  • Earthquake insurance
  • Fire insurance

Disability insurance

Disability insurance will provide you with an income in the event that you are unable to work due to a disability. This can come in the form of short-term and long-term disability insurance policies, which cover a portion of your salary.

Typically, less than six months is short-term and more than six months is long-term. Often, this is included as part of an employee benefit package but can also be purchased on its own.

Critical illness insurance

Critical illness insurance typically pays out a lump sum of cash in the event that you are diagnosed with a critical illness. These illnesses are predetermined and listed by the insurance provider.

Travel insurance

As the name suggests, travel insurance covers the risks associated with travelling. Cancellation coverage will cover costs such as unused rental cars, hotels and flights — provided you are cancelling for a valid reason as outlined in the policy. Different policies can cover a variety of events, including illness, injury, flight cancellation due to weather and job loss. Travel insurance can also be used to cover unforeseen expenses you may incur while travelling such as medical expenses, theft or lost luggage.

Auto insurance

Auto insurance can help cover the costs associated with vehicle ownership. It can cover theft of your car as well as damage. More importantly, it can cover liability as well as medical costs in the unfortunate event of an accident.

As you can see, there are a variety of insurance types. Being properly insured can help you stay on course with your financial plan. Speak to a financial professional to learn more.