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What You Need to Know About Insurance Coverage Options

While most of us are familiar with home or health insurance, there are tons of unique coverage options available for all kinds of things. Check out this guide to learn about the most important insurance plans and why they’re worth the cost.
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Insurance is an important investment for all adults looking to secure their financial wellbeing. Some products, like car insurance, are required to drive your vehicle legally. Other coverage options like health and home insurance can provide valuable peace of mind during emergencies.

However, there are many types of insurance that you may be unfamiliar with that are just as valuable as the more popular coverage options. We’ll break these down and explain why they might be right for you. From standard plans to lesser-known types of coverage, these insurance options could save you big money when the unexpected strikes.

Standard Insurance Options

Life Insurance - There’s no better way to protect your family in the event of death than with life insurance coverage. You’ll pay a monthly or yearly premium for your beneficiary to receive a predetermined sum of money.

These funds are invaluable when it comes to the costs of funerals and unpaid medical bills. While the amount of coverage you’ll need will vary, try to consider lost income and other financial burdens your family could experience when choosing an amount.

Health Insurance - Policy types vary widely with a broad range of premium costs, co-pay amounts, and other fine print that needs to be scrutinized. Plans include a focus on prescriptions, dental, or both. Many plans also have allowances for paramedical services like chiropractors and therapeutic massage. Whether you are choosing an individual plan or have group coverage (which you can top up/supplement with an individual plan) be sure to know the policy details, so you are not surprised by co-pay amounts and exclusions. Your insurer’s help line or your agent or broker can help with this.

Disability - One of the most overlooked coverage products is disability insurance. If you’re injured or sick and unable to work, disability income insurance will cover a portion of your monthly income to relieve the financial burden.

Car Insurance - Probably the most well-known insurance type, you’ll need car insurance to legally operate a vehicle in your province or territory. For the cost of a premium, your car will be covered in the event of an accident. High deductible policies could save you money in the short term, but you’ll be on the hook for potentially expensive repairs if the damage cost stays under the number. Coverage differs a cross provinces/territories such as the minimum liability coverage amount. Liability covers damages to the other person or vehicle in the accident. In some provinces the other driver can sue, driving your costs into the millions. For this reason, it is best to purchase more than the minimum liability coverage. Car insurance is a mix of mandatory and optional pieces. Ensure you fully understand your coverage and which aspects you need so you are properly protected.

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Home and Rental - These two insurance options will protect your property and make sure you’re reimbursed for anything lost in an emergency. Rental insurance comes with cheaper premiums but won’t include coverage of the dwelling itself. While homeowners insurance isn’t required by law, almost all lenders require it to receive a loan.

Uncommon But Practical Insurance Options

Pet Insurance - It’s difficult to find an insurance product that has exploded as quickly as pet insurance. In simple terms, pet insurance is essentially a health plan for your furry friend. From medications to vet bills, you can ease the financial burden by paying a monthly premium for pet insurance. Many plans are available without any exams required, and as pet care costs increase, you could save big with an insurance plan for your pet.

Natural Disasters - From fires to floods, there are numerous options available to protect your home. Natural disasters aren’t always covered by homeowners insurance, and depending on where you live, you may be required to pay for flood insurance. To get coverage for natural disasters you may need a rider. This is extra coverage that you can add for an additional cost. Be sure to review your home coverage closely and account for any emergency scenarios that could occur.

Wedding Insurance - You read that right. Wedding insurance can actually save you thousands if something goes wrong on your big day. From cancellations to damaged clothes, you won’t have to worry about your wallet if disaster strikes when you tie the knot. Destination weddings in particular have a ton of moving parts, and wedding insurance for them is usually a smart decision.

With so many unique insurance plans, you’ll be sure to find an option that fits your needs. There’s no better way to protect your finances during an emergency than with solid coverage across the board.

CPC-logoThis story was made possible by our Community Partners Program. Thank you Infinite Chartered Professional Accountants & Wealth Planning for helping to expand local news coverage in Alberta. Learn more.