By Anna Santos
Generally, insurance is treated as “complicated” by many, likely because of their lack of knowledge about it and its intimidating diversified types. It is worth familiarizing, if not all, at least the very basics of it for the consumer’s benefits and best interest. What comes to play the vital role in determining coverage and its type falls between the “purpose” and “goal.”
Insurance per se does not only cover humans (life), but it also covers things (non-life). While most of the population is focused on getting life insurance coverage for protection for themselves and loved ones, people tend to forget that there are also some important things that evidently need coverage for protection as well. These important “non-life” things are those acquired with great value and are extremely vital to humans.
The best example for the non-life is your own dwelling place, the house. It can never be a decent living without a roof over our head. It is wise to insure your house and its valuable contents (jewelries, antique collections, furniture, etc.) against theft, natural calamities like flood, typhoon, and earthquake and of course, fire.
|photo credit: Library of Congress, Flickr|
Another example of a vital non-life is your vehicle. The comprehensive type of insurance is the most advisable for that matter to take advantage of the full features in case of fire, theft, damage, accident, etc.
Now, you might be thinking that insuring the non-life would mean another expense taken out from your budget. But, you have to go back again to the question relative to determining what your purpose and goal is. You also have to remember that insurance of any sort is designed simply to “PROTECT.”
You now must have a clearer perspective why non-life insurance is important as well – in a different level as compared to life insurance. Having said this, you can still save while paying the premiums. Strategically, consider an extremely reliable and stable insurance company and have your house and car insured altogether for a better deal – since you are actually buying insurance in bulk.
Practically speaking, make an effort to scout for the company that offers the best and compare! You can also save by opting to pay the premiums in advance like quarterly, semi-annually, or annually. This enables you to have another discount on top of the savings from purchasing the bulk insurance.
The best part for non-life which makes it different from life insurance is that non-life insurance premium payments tend to lessen each year, provided there are no past and present claims under your policy. It is therefore your role to be mindful of your insurance standing to prevent claims of any sort that will greatly affect your future premium payments.
To sum it all up, always strive to learn. Be cautious of what is important and not, because it is you as a consumer to benefit from your own learning and experience; and in the event that you don’t know how things are, always look for help and assistance. It does not hurt to ask anyway. Get involved.
Anna “Jing” Santos is a medical transcriptionist, editor, writer, and blogger based in Canada. A committed saver and investor, she is a volunteer and moderator of OFW UsapangPiso Facebook Forum, a financial literacy advocacy arm of Angat Pilipinas Coalition for Financial Literacy dedicated to serve OFW’s and their dependents. She also owns the blog http://mysavingmoneytips.com.