Insurance basics: protecting your family's finances

Insurance turns a large, unpredictable loss into a small, planned cost. The key is having the right cover — not the most.

The main types

• Health insurance: often provided by employers for employees and dependants; check what your policy covers and its limits.
• Vehicle insurance: third-party cover is mandatory; comprehensive cover protects your own car too.
• Home and contents: protects against fire, water damage and theft.
• Protection cover: policies that support your family if something happens to the main earner.

Reading a policy

1. 1What is covered — and excluded.
2. 2Limits per claim and per year.
3. 3Deductible you pay before the insurer pays.
4. 4Network of hospitals or workshops.
5. 5How to claim and the deadlines.

Good habits

• Review policies once a year, not only at renewal.
• Compare quotes from licensed insurers.
• Keep copies of policies and claim documents together.

Buy insurance only from licensed companies, and choose Sharia-compliant cooperative insurance if that matters to you.