Have you heard someone say, you must get insurance done? Have you heard others say that insurance is useless and unnecessary, just buy equity stocks instead?

Let’s first clarify that buying insurance is not an investmentAn investment is made to give you a return. You make an investment if you use your money to buy either physical assets like property or financial assets like bonds and equity with an aim to receive income or gains... More. Unlike what is advertised, insurance is not the key to securing your financial future, your children’s or anyone else’s financial future.

Insurance can be of many types, the two which are a priority are life and health insuranceA comprehensive policy that covers for medical and surgical expenses that you incur. This includes hospitalisation expenses, pre hospitalisation expenses and other expenses incurred for all the illnesses covered in the policy. More.

Life insurance is a must if you have a family that depends on your income or if you plan to have a family in the near future. A life insurance policyAn insurance policy gives you the right to reimbursement or payment from an insurance company for losses agreed up on in a defined contract. A life insurance policy for example, needs the insurance company to evaluate a claim on the... More comes with a sum assuredSum assured is the amount you are insured for. In case of insurance for inanimate objects, the sum assured is what you will get and reduces as goods age or their depreciated value changes. In case of life insurance, there... More which is paid out to your dependents, your family, in the event of your untimely death. The sum assuredSum assured is the amount you are insured for. In case of insurance for inanimate objects, the sum assured is what you will get and reduces as goods age or their depreciated value changes. In case of life insurance, there... More can be chosen in such a way that it compensates for the lack of your income for many years to come, in case of this eventuality of death. Term life insurance policies are the only ones which make sense for this, do not consider any other type of life insurance policyAn insurance policy gives you the right to reimbursement or payment from an insurance company for losses agreed up on in a defined contract. A life insurance policy for example, needs the insurance company to evaluate a claim on the... More.

Health insuranceA comprehensive policy that covers for medical and surgical expenses that you incur. This includes hospitalisation expenses, pre hospitalisation expenses and other expenses incurred for all the illnesses covered in the policy. More is a cover for hospitalisation costs which can come up without warning and you may not have enough saved for it. Sudden hospitalisation, prolonged hospitalisation, and pre and post hospitalisation tests can all add up to be a very high cost. Health insuranceA comprehensive policy that covers for medical and surgical expenses that you incur. This includes hospitalisation expenses, pre hospitalisation expenses and other expenses incurred for all the illnesses covered in the policy. More cover can take care of this heavy expenditure at a very low premiumThis is the amount you pay for keeping an insurance policy active. Usually paid in a lump sum at the start of the policy term or annually through the term, it includes all the charges and levies by the insurance... More.

Ideally, get a health insuranceA comprehensive policy that covers for medical and surgical expenses that you incur. This includes hospitalisation expenses, pre hospitalisation expenses and other expenses incurred for all the illnesses covered in the policy. More cover for all family members including yourself, your spouse, children and dependent elderly members. Keep in mind these two types of insurance always as part of your contingency planning.

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