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The types of insurance you need to avoid financial loss

October 5, 2022

That is the basic idea behind getting insurance to protect all aspects of modern life. And thus, saving you from potential financial loss. 

If you’re not sure what types of insurance policies you need to get to protect yourself, then you’re in the right place. We’ve created the guide below to inform you of the best insurance policies to have in place as a young professional living in 21st-century Europe. 

Health insurance

The first thing you need to do is ensure you have access to adequate health care whenever and wherever you need it. In the unfortunate event of being in a car accident or if you’re in sudden need of an appendectomy, you’ll not want to sit around and worry about paying out of pocket in such situations.

Not only is healthcare getting more expensive as time goes on, but the burden of taking care of health issues is falling upon the consumer rather than the government or their workplace. 

With health insurance in place for you and your entire family, you’ll be reassured that you’re protected and safe.

Car insurance

If you have an automobile you rely upon to get you back and forth to work, then you’ll want to get car insurance. This way you can protect yourself in the following ways:

  • In case your car gets totalled, the insurance company will pay for a new one
  • Some car insurance policies also cover your medical bills
  • You are protected from liability and lawsuits from the other side

This does not mean, of course, that you can drive recklessly and without a care in the world. Car insurance policies can be quite costly if you’re not a good driver. So follow the rules of the road, but know that you’re protected in case you get into a car accident. 

Disability insurance

This is another kind of insurance that lots of folks should be getting, but are not. If your family relies upon your income exclusively and you get disabled due to some unforeseen circumstance, your family could be completely destitute. They might even have to apply for welfare or declare bankruptcy.

That is why having disability insurance that protects you in case of injury or something worse than that is so crucial. This is even more important if you work in a physically dangerous role, like a firefighter or a factory worker.

Your organization might have some coverage in place for you, but it’s always better to have additional benefits in place, so you’re protected from financial loss.  

Renters or home insurance

Besides your health, your other two valuable assets are probably your home and your automobile. That’s why protecting all three of these should be a priority of yours. 

If you’re a renter, then getting renter’s insurance is probably mandatory for you, based on your lease or rental agreement. Even if not, it’s always a good idea to have such coverage in place.

You can even set up a high deductible so your monthly insurance premium is low enough for it to be inconsequential. This way, even though you’ll have to pay a bigger amount out of pocket if something happens, at least your monthly expense will be lowered. 

Critical illness insurance

Nowadays, as chronic diseases are becoming more common, getting critical illness insurance is becoming more crucial. Even more so, if you have a history of such chronic diseases in your family. 

Critical illness insurance will give you a lump sum amount if you end up getting any of the chronic conditions listed on the policy. When you’re already dealing with such a terrible diagnosis, it can be nice to know that at least you don't have to worry about financial loss.

With the lump sum amount, you can pay your bills for a while, until you nurse yourself back to health. Or you can pay your family’s monthly expenses. Critical illness insurance policies usually do not care how you spend the money; it’s entirely up to your discretion. 

Travel insurance

This is a minor one, but still, something to consider. Wherever you go traveling, it’s a good idea to get travel insurance. 

Depending on the policy and coverage you choose, you’ll be protected in case of baggage loss, flight delays or other issues, and maybe even medical issues. Some travel insurance policies will cover you in case you contract Covid-19 and need to quarantine in a hotel. 

If you only travel once a year, it probably makes sense to get a “one-time” travel insurance. However, if you’re an avid traveler, you’ll save money by getting yearly insurance. It can give you that much-needed peace of mind when going abroad. 

Protect yourself from financial loss using insurance

There are many different types of insurance policies out there. You don’t necessarily need to get all of them, since you might be overinsured and spending way too much money on insurance premiums. 

But the above mentioned should be enough to protect you from financial loss. 

If you’re looking for a bank that helps you stay on top of things (like insurance) and saves you money every day, check out bunq. Download our app to see how we can make your banking experience seamless. 

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