Most people are familiar with the basic types of insurance available in the market today. You probably have car insurance or homeowner’s insurance policy and understand how they work. However, there are several types of specialist insurance that you may not be aware of. For more information about this Lloyds of London is a great place to start. Some policies insure things that you might have never dreamed could be insured. Here are some strange or lesser-known insurance policies that you may not have heard of or realise even existed…
You probably didn’t know that you could insure a mustache. However, one man did exactly that. Merv Hughes, an Australian cricket player took out a $370,000 insurance policy on his mustache. Apparently, his mustache was a big part of his image as a celebrity and he wanted to make sure that nothing happened to it. This is probably a pretty rare policy and wouldn’t do you much good unless you had an iconic mustache – Time.com
Alien Abduction Insurance
People have been making claims of alien abductions and sightings for hundreds of years. Those claims haven’t slowed down in recent years, with YouTube videos only adding fuel to the fire. If you are a believer in UFO’s and you are concerned that you may be deducted at some point in the future, buying alien abduction insurance is a possibility. In fact, more than 30,000 alien abduction policies have been sold. If you are abducted by aliens and you can prove the encounter somehow, you’ll be able to collect on the policy.
Longevity insurance is a lesser-known type of policy that actually pays you a sum of money if you reach a certain age. Most of these policies will start paying out once you hit the age of 85. These policies are designed to help you pay the bills when you’re too old to work. They may continue paying you a sum of money on a regular basis until you reach the age of 100. At that point, you’re on your own. The premiums for this type of policy will increase the later in life you buy the policy. If you buy the policy while you’re still young, the premiums will be pretty cheap.
Insuring Ability to Perform
Many athletes and celebrities have ensured their ability to perform and to earn a living. For instance, baseball players have insured their ability to play ball so that they can collect if they become injured. Singers such as Bruce Springsteen have ensured their voices so that they can be paid a lump sum if they lose their ability to sing and perform. These policies may not really apply to the average person, but you could buy disability insurance, which is basically the same type of policy.
Key Person Insurance
Key person insurance is a type of business life insurance policy that you can take out on an employee. If the employee passes away, your business receives a payout. This can come in handy if you have an important executive that makes a big financial difference in your company. You have to get permission from the employee before you can buy this kind of insurance.