Written by: GoInsuran
Must-know: A young adult’s insurance needs
Given life’s uncertainties, many have looked to insurance to help cushion and minimise losses in the event of unexpected circumstances as they go through the different stages of the life cycle.
Surely, there are instances when we look back, and think of the ‘what ifs’. Well, we can’t do anything about the past, but we can do something a little bit every day, to financially safeguard ourselves and our loved ones in the event of unfortunate incidents.
There are many insurance options available that cover assets, life and health. Thus, it’s important to find the right type of insurance that suits your current and future needs.
Protecting your assets
Ahhh, as we grow in age, so do our commitments. A risk-free life is nearly impossible, so general insurance gives peace of mind to live with less worry. General insurance covers insurance policies relating to home, cars and other property. It is also known as a non-life insurance product, as it doesn’t cover the life of an insured.
There are two categories of general insurance products:
- Commercial Lines – Offered to businesses/corporations
- Personal Lines – Offered to the public
The coverage period for most general insurance policies and plans is usually one year, where premiums are paid on a one-time basis.
When looking for cover for assets, you could start with a list. That way, you can decide which asset requires more comprehensive cover. Let’s start by taking a look at car insurance. After all, one of the first purchases of a young adult is likely to be a car.
Give your car the love of a motor insurance
With the monthly repayment installment, also comes the yearly car road tax renewal and mandatory car insurance. Protecting yourself and your car against accidents and unexpected events such as natural disasters should be a priority. There are three types of car insurance – ‘Third-Party’, ‘Third-Party, Fire and Theft’, and ‘Comprehensive Car Insurance’.
A comprehensive car insurance policy usually covers a wider range of protection, notably to both first and third parties. In insurance speak, ‘first party’ refers to you (the driver), ‘second party’ is the motor insurance company, and ‘third party’ is everyone else.
With a comprehensive car insurance policy, you enjoy the same coverage as a ‘Third Party, Fire and Theft’ policy, but with the added coverage of damages to your own vehicle. Unfortunately, comprehensive car insurance does not necessarily protect your car against damage caused by flood. Flood coverage is an add-on, which you have to pay an additional premium. [link to article 3]
More life stages to come
Car insurance is just the start! The next stage of your life could see you purchasing a home. For that, there’s Basic Fire Policy, Houseowner Policy, and Householder Policy.
For those who are in the ‘newly wed’ or ‘growing family’ life stage, you could consider an insurance plan for the family – a medical, life, and/or accident plan. Always take note of any exclusions (what the insurance policy doesn’t cover).
It’s undeniable that insurance plays an important role in the risk management of one’s life and financial portfolio. So, get the insurance that you need, but be sure that you’re comfortable with the premiums required.
We’ll cover more on the different types of insurance across more life stages soon. Be on the lookout for them! Until then, if you need an insurance quote for your car, contact us.