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Why is insurance important and what can you protect?

What is insurance?

Insurance is a financial product that provides peace of mind and protection against loss, damage or theft. The list of what you can protect is almost limitless, with the most common relating to the things and people you love. For example, you can insure your home, car and phone. You can also protect your health and can even insure your life so your family would be looked after if something were to happen to you.

Risk vs protection

Insurance is all about managing risk. Some insurance is compulsory, for example, car insurance for drivers. You might need other insurance as a condition of contract, like  home insurance if you have a mortgage on your home. Most other insurance types are a matter of choice, and involve you prioritising what's most important, within the budget you have available.

Protecting the things you love:

  • Car – including accident, breakdown and windshield insurance
  • Home – including buildings, content, valuable items and household appliances
  • Personal items – like your phone, tablet, jewellery, gadgets, purse or wallet
  • Travel – including emergency medical, trip cancellation, baggage delay and flights
  • Pets – covering those unexpected veterinary costs

Protecting the people you love:

  • Health – healthcare for you and your loved ones
  • Life – providing peace of mind with a lump sum payment if you pass away, as well as helping you to leave a meaningful legacy for the people you care about

HSBC offers the following insurance options:

  • Creditor Life – protecting your home and family with coverage that reduces or pays off your mortgage or line of credit. Learn more.
  • Newcomers and Students to Canada – emergency medical and dental during the wait period (usually 60-90 days) before your provincial insurance starts. Learn more.
  • Visitors to Canada – emergency medical and dental for you and your family while on holidays in Canada. Learn more.

Protecting yourself:

  • Income and payments – including income protection, payment protection and critical illness insurance

HSBC offers:

It may also be worth prioritising the risks that you'd find hardest to cover yourself. For example, most people would not be able to replace all their belongings after a serious fire, or pay for emergency medical treatment during a vacation.

For other smaller risks, it might be worth considering putting regular savings aside in an emergency savings fund, rather than taking out insurance. We consider this in more detail in section 5-Insurance Terminology.

Protecting what matters

Insurance may protect you and your loved ones while also being a helpful saving mechanism.
When it comes to protecting your loved ones' health and financial futures, you have options.
Familiarise yourself with the terms you may come across as you explore insurance options.