Insurance Planning

Insurance is a very important tool for managing personal finances. It helps in handling risks that faces property.

An individual insures against personal risk. This is done in order to be safe and eliminate the ability to earn income as a result of old age, death, unemployment and disability.  

Property Risk: This is associated with destruction of property, theft or damage of material wealth. An individual can insure against direct and indirect loss. It is advisable to insure business assets stored at home separately.

Liability risk: This is associated with punitive damages that may be caused by negligence or carelessness hence leading to damage of property or cause personal injury.

Life Insurance

There are two types of life insurance. The first one is term insurance and permanent insurance. Term insurance just covers the life of an insured person for a pre-determined period of time. This can be 10 years or more. On the other hand, permanent insurance is covers the life of the insured until death.

Disability Insurance

Most people can agree with that a large number of people in the developing world are actually under-insured. That means those people are actually exposed to a lot of risks in life. Therefore, there is a likelihood of being disabled at some point in life.

Health Insurance

This type of insurance is used to pay for medical care at home or in an institutional setting. In Kenya there are several families taking care of people with permanent physical or mental illness. That means that there are several people who are not only disable but also frail.

Property Insurance

There are two common types of insurance. That is motor and home insurance.

Motor Vehicle Insurance

All motor car owners are required by the law to be in purchase liability insurance for their motor vehicles. This insurance protects the general public from injuries or damages when the vehicles are involved in an accident.

The minimum amount of insurance changes from one country to another.

Home Insurance

This is an insurance policy that covers your home form damage from fire. There are some plans that cover all types of risks while the rest are very specific hence covering fire, vandalism and theft separately.