Must Have Insurance Policies

Are you covered against possible risks in 2021? Insurance premiums might seem expensive at first but provide a significant relief when the insured losses occur. It also gives you peace of mind knowing your family is financially covered or your assets are covered for redemption if anything happens.

Are you covered in 2021?  

So, when are your insurance covers up for renewal, and how much will each cost? The sooner you start saving for these expenses, the easier it will be to settle the payments. In fact, it will help you avoid getting into debts, whether from financial institutions or individuals, in a bid to renew your policies.  

If you have no insurance covers, maybe it is time you considered getting some that can cover you from significant expenses in the future. Here are 4 must-have insurance covers in 2021:

Health Insurance 

Health insurance will come in hand when you get admitted. We all know how expensive hospital bills can get for inpatient care. 

Start with NHIF, which is Ksh. 500.00 per month or Ksh. 6,000.00 per year for the self-employed. From experience, the outpatient payment can be tricky in private hospitals, even just paying for my glasses, but it paid part of my inpatient bill in 2017. 

I remember my mother’s cover paid for my inpatient charges back in 2008 as a beneficiary. It might be a long time ago, but I have seen my family members upcountry, including my late grandpa and grandma, benefit from it. Cover yourself when you can (this is not an AD for NHIF but my advice).  

If you have the money and do not mind making a one-off payment, pay the whole amount and forget about it. If not, include the NHIF payments in your monthly budget and make payments before the monthly deadline, which is the 9th day of every month. Late payments attract a penalty of Ksh. 250.00 per month (See Tweet). 

For the employed individuals, the rates vary depending on your gross salary amount, and your employer is in charge of deducting and remitting the funds to NHIF in time. 

The second option is to get health insurance cover from private insurance companies. The premiums are more affordable for inpatient than outpatient. 

Your premiums will depend on, among other factors, your age and other underlying conditions. The older you are, the more costly the premiums. These premiums are more expensive for individuals with underlying health conditions, but it doesn’t hurt to get one. 

I used Pesa Bazaar in 2020 when I was shopping for an insurance cover to compare the different options. You can still approach your preferred insurance companies for quotes and settle for the one that suits your needs and budget.

Homeowners Insurance

Have you protected your prized possessions against risks like theft or natural disasters? If someone broke into your house and wiped it clean, how much would you spend to replace everything, from your flat screen to your laptop, phone, other electronics, and furniture? 

Homeowners insurance will apply whether you are in a rental house or not. It is actually quite affordable. My premium was lower than what I paid for the health insurance. I did an article sometime in 2020 on Home Insurance: Advantages and Insurers to Use Kenya, but do your research and weigh your options from other insurers, not on my list.  

Remember to update your policy with any new purchases that you consider pricey if you got new items in the previous year and are not part of the current policy.

Auto Insurance

If you have a car, an auto insurance cover is a must-have in Kenya. Should you get the third-party or the comprehensive cover? That will depend on your financial capabilities, where the third-party cover is more affordable. The comprehensive cover is expensive but offers more protection. If you want to change your insurer, now is the time to start shopping and budgeting for any extra costs involved in the process.

Life Insurance 

How would your beneficiaries fair financially if you were to pass on? A life insurance cover pays a lump sum when you die. In exchange, you will pay premiums.

There are different types of life insurance covers, so ensure you shop around and weigh your options. Some pay a benefit to your beneficiaries when you pass away in the case of a whole life policy, while an endowment cover includes an investment option. You can also lose the benefits if you outlive your cover, in the case of a  term assurance cover.

Not everyone can afford each of these covers, but it is important to get a policy that affects you and your family. I would suggest you start with the health insurance cover since your health is the most important thing. You can then add other covers like home insurance for the expensive items in your house or life insurance to protect your beneficiaries. Do you have any insurance covers? Let’s discuss more in the Community


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