Third party liability and Casco insurance, and in addition, a Travel Package insurance when necessary. Often, according to our understanding, this is all when it comes to the term insurance. Often, the money spent on these insurances is considered to be totally wasted. Why do we need to insure? What is the point of this? People who have lived abroad will immediately say that covering risks brings peace of mind, and it is also a matter of culture. However, the argument with culture does not sound quite convincing. At least to date. What is the relation between culture and spending hard-earned money on insurance? And how we can link insurance and peace of mind. We must admit that we rarely realize the danger of driving a car, buying a home or starting own business without having proper insurance. Accidents happen every day and having insurance can save us in the most difficult and complicated situation.
Flooded apartment, damaged car, vandalized office, disease … When we suffer a loss, our daily lives can change unexpectedly and dramatically. When hard times come, insurance can be crucial, helping us to reimburse costs, return to our normal lives, and beat stress.
How insurance can help us?
When people buy insurance, they put money into a premium pool with many others exposed to the same type of risk. Some of that pool of money helps people who suffer an unexpected insured hardship. People without insurance coverage have to pay at their own expense, which is often impossible, especially when they are not able to work. Here comes the answer about the meaning of insurance and its benefits. Peace of mind. Having peace of mind – financially or emotionally, has no price.
Can everything be insured?
The answer is yes. Everything is subject to insurance – from property to life. General insurance includes all types of auto, property, liabilities, tourists and personal insurance. Life insurance offers various types of life insurance as well as medical and health insurance.
The most important insurances in Bulgaria are CASCO insurance and Motor Third Party Liability insurance. However, it is worth considering that there are different products with significance, among which property, life, medical and liability insurance.
What does auto insurance cover?
CASCO insurance covers total loss or partial damage as a result of fire, theft, malicious acts of third parties, natural perils, traffic accidents, etc. Motor Third Party Liability insurance covers the third party liability of owners and drivers of motor vehicles for third-party personal injuries, death or material damage which have been caused by them with the insured vehicle and for which they are liable under the law.
What does life insurance cover?
Nobody likes to think and talk about death. However, it would be reasonable that we anticipate the events that might happen to us. And further – how this might affect our loved ones and especially those who depend directly on us. Most Life insurance products have two features. The investment one, as the policy brings additional income in some future period. The other feature is related to the provision of future funds to those who are financially dependent on the insured in the event of loss of life.
What does health insurance cover?
Health insurance covers the risk of illness. The products are different in nature and the client can choose among various risks. The insurance can cover payment of amounts or reimbursement of actual expenses incurred due to illness; expenses for medicines and medical assistance, daily allowance for hospital stay, etc.
What does liability insurance cover?
Liability insurance refers to a product that provides protection against claims resulting from injury or material loss from our action, inaction or as a result of negligence. In these cases, we are obliged to compensate injuries and damage to other people or property, which can be costly.
The bottom line
Having insurance is an essential part of financial planning. In the event of unforeseen circumstances, the insurance can save us from financial hardship. However, before we decide to buy an insurance product, we must have a clear idea about the following – what are our exact needs; what benefits does each insurance product provide; does our budget allow us to pay the premium.