Why Having Insurance is Important
By AP Insurance
Do you have insurance? Insurance protects you and your loved ones in case of injury, accident, or death. It gives you peace of mind and security, knowing you won’t have to pay for life’s expensive, unexpected events out of pocket.
Thank you for reading this post, don't forget to subscribe!Today, we will discuss the basics of five common insurance plans the average Canadian needs and why having them is important.
Life Insurance
With a life insurance policy, you provide financial support for any family left behind when you pass away. This policy most often covers any debts, like mortgages, but can also be used to financially provide for your dependents. Some mortgage policies require you to have life insurance so they know they’ll be paid should you pass away before your mortgage is completed.
An important feature of life insurance payouts is that they are given to your beneficiary tax-free. This is meant to minimize or eliminate any financial burden they may have. Your insurance broker can help you calculate how much coverage you need to settle your estate and ensure your family is taken care of after your passing.
If you pass away without life insurance, your loved ones may hold the burden of paying your debts and supporting themselves.
Auto Insurance
Having insurance for your vehicle is the law in BC. Car insurance covers you for property and personal injury if your vehicle is in an accident. Insurance premiums are based on many factors, including:
- The vehicle (make/model/year)
- Your driving history
- Where you live
- How far your drive
- Any discount credit you may qualify for
As of May 1, 2022, drivers in BC can renew existing ICBC insurance policies online, but new policies must still be done through an ICBC-approved insurance broker (like AP Insurance). In the meantime, you can estimate the insurance you’ll need to pay using the free ICBC estimation tool.
Without auto insurance, you will have to pay the full cost of any repair work on your vehicle and any third-party property in an accident. You may also be liable for injuries to people involved in the accident.
Home Insurance
Home insurance can provide financial protection if your home is damaged and needs repairs or is damaged beyond repair. Depending on the type of home and your ownership of it, you have different types, including:
- Single-family residence
- Condo residence
- Renters insurance
- Seasonal residence
- Home-based business insurance
- Dwelling fire policy
- Up to 6 family dwellings
- Vacant home coverage
Home insurance has “standard” coverages, and you can usually personalize your policy by adding on additional specific coverage for:
- Personal liability umbrella
- Replacement cost valuation
- Fire and burglar alarms
- Business in the home
- Value of home contents
- Jewelry, collections, solver
- Sewer back-up and water damage
- Earthquake coverage
Tenant Insurance
If you are a tenant or renting a residence that you don’t own, you can get a special insurance coverage called Tenant Insurance. Some tenants are surprised to learn that their landlord’s insurance does not cover any damage to your personal belongings in the home. And, if you are responsible for the damage, you may be liable to pay for the damages.
Tenant insurance may cover:
- Personal belongings
- Living expenses if you are displaced during property repairs
- Liability claims
Condo Insurance
Living in a condo residence necessitates a different type of residence insurance. It contains many of the same coverage you’d get with tenant insurance but can also include deductibles for your strata building, water, and earthquake damage, and assessment coverages for any shortage in your strata insurance policies. If needed, additional coverages can be discussed with your insurance broker and added to your policy.
Having insurance for your home, no matter where you live or what type of property you own is important because you could be on the hook for tens or hundreds of thousands of dollars in damage if there is damage or an injury on your property.
Travel Insurance
Now that the world is travelling again, it’s time to review (or apply for) your travel insurance. Your BC provincial health insurance does not cover you if you get injured outside the province. Healthcare in other countries can be costly. For example, a 10-day hospital stay can exceed $100,000.
Travel insurance helps you deal with and pay for unexpected expenses while on vacation. This may include:
- Paying for emergency medical care or hospital stays
- Ambulance trips
- Support for delayed flights or lost baggage
- Partial or full reimbursement for trip cancellation
You can also get insurance if you are away from home for school. This applies to Canadians studying abroad and international students coming to Canada for schooling.
Another travel insurance option is known as a Super Visa. When you have a family member visiting for an extended period, they require proof of travel insurance. With a Super Visa Insurance policy, they are covered if they become sick or injured. It can also be extended when their stay extends past the policy validity period.
Pet Insurance
You can purchase an insurance policy to help pay for your pet’s health care costs. This includes coverage for routine check-ups and more costly procedures and emergency care.
Various companies provide this insurance to cover medical care for costs including:
- Accident and illness coverage (x-rays, emergency care, hospitalization, medication and surgery)
- Dental (annual cleaning and treatment for tooth and gum problems)
- Customer benefits (boarding fees, lost pet support and holiday cancellation)
- Special benefits (for other alternative treatments, therapy, or medical devices)
- Wellness coverage (for annual routine exams and vaccinations, and wellness profiles)
For many, pets become beloved family members, and you’d do anything to protect them. However, their vet bills can be expensive, especially for unplanned, non-routine care. When you have pet insurance for your pet, you help bring down the costs of these bills, so you can focus on loving your pet, not worrying about healthcare bills.
Pet insurance is not required in BC, but many pet owners appreciate the freedom to get the care they need for their beloved pets without worrying too much about the costs.
We regularly refer clients to PetSecure for pet insurance. Be sure to mention AP Insurance Services to receive a discount.
Where to buy an insurance policy
To ensure you get the coverage you need, an insurance broker can help you find the insurer who offers the benefits you need and a premium you can afford. Talk to an insurance advisor at AP Insurance today about how you can ensure you’re financially protected in case of an accident or damage.
