Paying out for insurance is one of those adult expenses that everyone resents, as for the most part, it is a significant expense for which we get nothing in return. Though of course in times of crises we are very grateful that we had the sense to arrange the cover!

There are many different kinds of insurance out there, and most people are caught between concern for the reputation of insurance brokers (who want your money but make it very difficult to make a claim) and wanting peace of mind just in case they are one of the unlucky few who have some bad luck. Here, we take a look at the main types of insurance to help you decide which to invest in and which it’s safe to avoid.


Life insurance is something we are persuaded to pay into in order to create a financial safety net for our loved ones in the event of our death. This kind of insurance has a reputation for being aimed at those who are overly anxious about the prospect of a serious bout of bad luck, or those who have plenty of spare cash. It can give you peace of mind. However, if you do not fit either of these descriptions, you can rely on pensions and savings, and try to work for one of the many companies who offer spouse pensions and pay outs when you retire.

Some countries like the UK are lucky enough to benefit from free healthcare, but others require you to take out health insurance to cover the cost of unforeseen medical expenses. Unless you have a body so perfect that you will never require medical assistance, it is highly recommended that you invest in this. It is especially important considering the huge bills you can create if you ever need surgery, however you can opt for critical illness insurance instead.

The same goes for dental insurance; it is highly recommended. Pet insurance, depending on how much your pet means to you, can save you a lot of money if they ever need to visit a vet, and many animals are clumsy enough to need to at some time in their life. However, considering their shorter life spans and the control you have over their health, it is seen by many as an expense you can avoid.

Travel insurance is also something that can be avoided as long as you are extra careful not to take any risks while you’re abroad. However, becoming victim to foreign medical bills can be a life changing expense and travel insurance is very affordable in comparison.


Home insurance is something that most people invest in as their homes are one of the biggest investments they’ll ever make, and serious damage such as flooding, or fire could see them losing thousands. You can choose full cover or either building or contents insurance, so you do have some control over how much you spend. Usually if you’re in rented accommodation, the Landlord will cover the building insurance and the tenant will cover their contents.

Vehicle insurance is a legal necessity in many countries in case you damage another vehicle, so there is no choice involved as you could face severe fines if you’re found to have not taken any out. Vehicle insurance needs to be tailored to the kind of vehicle you have, and whether or not it is also used for business purposes. You can visit an insurance company like onesure to look at the price differences.


Business insurance is not compulsory, but many business owners choose to take it out as they invest an awful lot into their companies and could lose their livelihood if something were to go wrong. There are different kinds of business insurance to choose from, such as income protection, trade credit and public liability insurance, so make sure you do your research to find out exactly what would be covered.

Despite it having a significant impact on our bank balances, insurance can be real life saver so it’s important to seriously consider the pros and cons of each kind before deciding on whether or not to invest in it. This blog gives you loads of financial advice if you’re ever unsure of how to look after your money, such as ways to come up with money when you are flat broke; it’s well worth a read.

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