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Personal Insurance In Canada: What Are The Different Types?

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Personal insurance in Canada is the path to financial protection. In this article, you will learn about what personal insurance is, and how it can protect your family.

Personal insurance

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If we try to sum up our daily lives, we may say that life is a continuous battle between risk and reward. If you want to make money, you must incur a fair degree of risk. When we talk about insurance, it’s almost the same thing. If we want to get financially secured for the unforeseen circumstances of the future, we must have insurance that keeps us safe. So, if you require that peace of mind, you will get it with insurance, but it comes with a price.

In this article, we will discuss the concept of personal insurance as well as the several types of personal insurance available in Canada.

Things you Should Know about personal insurance

What does Insurance Mean?

Insurance is a contract that states that if you ever need it, your insurer will cover the costs of illness, damage, or losses. In exchange, you must pay an annual premium, which is usually spread out over 12 months.

Do You Really Need Insurance?

It acts as a tool for risk management. You have no control over what happens in your life, but you can take steps to safeguard yourself. Your present lifestyle will determine the type of insurance you require. This could include your home, workplace, and personal belongings.

How do I Decided What Type of Insurance I need?

It might be difficult to choose the form of insurance you require. It is preferable to get the help of an expert for the same.

Types of insurance
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Types of Insurance

There are numerous types of insurance available. The following are the most significant types of insurance to consider.

1. Life Insurance

This sort of life insurance works by paying a lump sum of money to your beneficiaries (the person or people who will receive your insurance payment) after you die. This amount is exempt from taxation.

2. Disability Insurance

If you are injured at work and lose income because of the injury or disability after the incident, you may be eligible for a monthly payment to assist you to replace your lost income. This sort of insurance pays out if you are unable to work for a length of time, either temporarily or permanently.

3. Health Insurance

The cost of health insurance in Canada varies depending on where you live in the country. Doctor visits, hospitalization, and other medical bills are covered by your public medical insurance.

4. Supplementary/ Extended Insurance

If you live in Canada, you may want to consider purchasing Canadian Supplementary or Extended Insurance to cover medical expenses not covered by the government’s medical assistance programs. This plan usually covers medical expenses such as prescription medication and dentist appointments.

You have no control over what happens in your life, but you can take steps to protect yourself. There are some situations in which insurance is advantageous, many in which it is essential, and some in which it is mandated. All you need to do is to pay an insurance premium to manage risk. It’s ironic how we pay for insurance, but we hope that we will never need it.

If you are interested in learning more about insurance, check out our other blogs.

References:
https://canadianvisa.org/life-in-canada/insurance/personal-insurance
https://www.canada.ca/en/financial-consumer-agency/services/financial-toolkit/insurance/insurance-2.html
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