Insurance serves as a protective shield and safety net in unpredictable situations in life. They do not exclude the risks that surround the people every day, but they cushion financial blows when they go through unwanted events. The National Bank of Moldova, in partnership with the Independent Think Tank “Expert-Grup”, presents the types of available insurance and the benefits they offer so that the persons can make informed decisions regarding their protection and the protection of their assets, IPN reports.
Health insurance is one of the most accessible ways to protect health (through early diagnosis, access to quality medicine) and prevent health problems early. Health insurance covers medical expenses, including diagnosis, necessary medications, hospitalization, surgery, and other costs associated with the protection of physical and mental health. “The most important reason that makes people ignore this type of insurance is the existence of mandatory health insurance in most of the European countries. It is important to understand that the mandatory insurance guaranteed by the state does not cover all the costs related to health problems, but optional health insurance can also cover the costs that are not included in the mandatory one,” stated the NBM.
Home insurance covers damage to the property in case of fire, earthquake, flood, theft, vandalism, falling aircraft, landslide, snow layer pressure and others. It covers damage to property inside the house in the cases listed above, but also legal civil liability related to the use of the home – flooding of neighbors, accidents that happen in the house, legal assistance, etc. In the Republic of Moldova, home insurance is at a low level (2-3% of homes are insured). The homes purchased through lending programs are usually insured as this is a condition imposed on debtors through the mortgage or loan agreement.
Vehicle insurance protects against financial losses caused by accidents, theft or damage to the vehicle. The insurance also covers civil liability, which helps pay for damages caused to other people in an accident for which we are to blame. This type of insurance is mandatory in most countries of the world as motor vehicles are a source of increased risk.
Life insurance helps cover the costs associated with raising of children, outstanding debts and generally supports the financial stability of the whole family. There are various types of life insurance and this type of insurance is very different from all the types of insurance mentioned above. The most important difference is the duration of the relations between the parties to the life insurance contract, which is of decades compared to other types of insurance that, as a rule, are renewed annually.
“Insurance is not a cost, but an investment in our future and the future of our beloved ones. It is very important to understand the available types of insurance and the benefits they offer in order to make informed decisions regarding the protection of oneself and the owned assets,” said the National Bank of Moldova.
