You never know when you’ll need insurance. It’s one of those things you pay for but hope you don’t have to make use of. But many people also believe it’s an expense wasted on a “what if”. They think they won’t need it. Until one day when they do and they have to pay out of pocket.

Some people have an emergency fund in place of insurance policies. The thing is that you can’t always be sure that you’ll have enough money set aside. You also don’t know how many things are going to wrong at once. Which is why there are four types of insurance you should seriously consider.

Health insurance

You never know what may happen to you or family. You could become seriously ill or injured and need to be hospitalised. Or you may simply need to visit the doctor and go for a series of expensive tests. These can come with a large bill. A bill you may not have the cash to pay at the time. Which is why you should think carefully about signing up for a hospital plan or medical aid with day-to-day benefits. You can’t predict the future and it’s important you and your family are covered.

Car insurance

Accidents happen every day. It’s not about the odd scratch or dent. Those can be left alone or repaired relatively cheaply. It’s about those car accidents that make your car unsafe to drive when you need to use it to get to work and back. It’s about not having to fork out a large amount of money because you made a mistake. It also means you’re not left responsible for damage to someone else’s vehicle. You get different types of cover, so it all depends on what you’re willing to pay.

Life insurance

You may not think this is important. You may believe that you don’t have to worry about money if you’ve passed away. The problem is, you may leave your family with financial difficulties. If you are a parent or are the sole breadwinner, you need to ensure your loved ones are taken care if something happens to you. It’s also something you should consider if you’re buying a house.

Home insurance

Even if you live in a seemingly safe neighbourhood, you never know if your house is going to be broken into or not. That’s why you should think about protecting your belongings. You don’t want to have to replace your flat screen TV, your laptop or your expensive jewellery. Home contents cover will ensure that you can replace all stolen items. However, it’s important you update your list of contents every time you make a new purchase.

At the end of the day, you don’t want to end up having to pay out of pocket for any accidents, burglaries or illnesses. And you also want to make sure your family is taken care of should anything happen to you.