UNIT 4





Insurance protects you in worst-case scenarios. Sometimes it is hard to see the big picture when it comes to insurance, because the premiums you pay can add up depending on what types of insurance you have. However, if disaster strikes, it is so important to have coverage. For example, if you are renting an apartment and a water main breaks, your tenants insurance may allow you to replace all of your personal belongings. This can add up to tens of thousands of dollars. The following is a list of common types of insurance:

Car Insurance — Liability

If you have a car, it is the law to have liability insurance. If you were to get into a car accident and you were at fault, liability insurance would pay the other person's damages and medical expenses.

Car Insurance — Collision

If you are making payments on a car, you are required to have collision on your insurance policy. If you were to get in a car accident and you were at fault, collision insurance would pay for any damages to your vehicle. If you cannot afford to replace your vehicle, it is a good idea to carry collision insurance.

Health and Dental Insurance

Even with universal health care in Canada, there are many medical expenses that are not covered by Alberta Health Care. Health and dental insurance will cover things like trips to the dentist, medication, physiotherapy, braces, and medical devices.

Home and Tenant Insurance

Home and tenant insurance covers you in case of physical damage to your home (if you own or rent your home), theft and damage, or loss of personal belongings. Do a quick inventory of everything that you personally own. Could you afford to replace all your clothes, shoes, computer, T.V., etc. if there was a fire?

Life and Disability Insurance

Life insurance is paid out if the person holding the insurance policy dies. This can help pay for funeral costs and help the deceased's family with expenses for several years, depending on the policy. Disability insurance is paid out if a person becomes too ill to work. Disability insurance allows you to continue to pay your bills when you no longer have an income.