Weird Types of Insurance Policies
Most of us are all too familiar with insurance products for cars, homes, and health. You've likely heard of life insurance and dental insurance. But the world of insurance includes policies for a range of unusual needs —– like protecting weddings, addressing childbirth surprises, and securing valuable body parts. There’s even an insurance policy to protect against alien abductions.
The world is filled with all types of risk. From driving on a busy highway to walking around your house, statistically, there’s a margin of danger nearly everywhere. Fortunately, the insurance market is designed to offer consumers financial protection from these risks.
For many risks, all you need to do is find the right policy and make regular payments to avoid the major expenses that may arise from unexpected events, no matter how odd.
Weird Insurance Policies
Here are five weird insurance policies on the market today:
- Wedding Insurance
- Lottery Insurance
- Multiple Birth Insurance
- Body Part Insurance
- Alien Abduction Insurance
Out of all the “weird” insurance policies, perhaps wedding insurance is the most fathomable, particularly when the average cost of a wedding is now just over $33,000. For couples who are beginning to build their financial future together, that’s a hefty burden, particularly if the vent doesn’t go as planned.
Despite deposits and contracts, photographers fail to show, dresses can be ruined, and venues can double-book. Other issues might include weather-related disasters, alcohol liability concerns, and guest injuries.
With wedding insurance, brides and grooms can protect their special day from blizzards and floods, as well as drunk photographers and, in some cases, “cold feet.” (However, many insurance companies exclude wedding-day jitters from the policy.)
Much like other types of insurance, the price you pay for wedding insurance depends on a variety of factors, like the location of your wedding, total guest count, whether you want liability insurance, and the total amount of coverage you want.
Couples who turn to top wedding insurance companies like Markel, Travelers Insurance, and WedSure can pay, on average, from $155 to $550 for basic coverage, with additional liability coverage costing around $185. Don’t be surprised if exotic animals or firearms send your insurance costs skyrocketing.
Not every policy is the same, so any couple considering insuring their wedding should read the agreement thoroughly.
>> Read More: Is Wedding Insurance Worth It?
When it comes to winning the lottery, the odds aren’t in your favor. But if by some chance you are part of a winning office syndicate, your boss may certainly have the odds stacked against them — particularly if they’re expecting their employees to show up to work the next day. Lottery insurance protects against the cost of an employee suddenly quitting due to winning the lottery.
Though not widely available in the United States, business owners in the United Kingdom have a safety net should their employees hit the jackpot and quit their jobs.
Companies like Fielding’s Mann and Lloyd’s of London offer national lottery contingency policies for anywhere between $65 to $390, based on the total number of employees.
Multiple Birth Insurance
If you or your partner are pregnant, you may be excited to welcome a single bouncing bundle of joy into your lives. But what if you are expecting two or three babies, or even more?
If that’s the case, and you’re a parent in the United Kingdom, then you may be able to take advantage of Multiple Birth Insurance, which protects parents from the financial burden of having twins, triplets, and more.
How much does it cost to insure your double (or triple) bundle of joy? Marcus Hearn, one of the leading insurance companies providing this type of policy, typically charges between £84 (about $110 USD) and £210 ( about $275 USD) per policy, with payouts between £2,000 (about $2,600 USD) and £5,000 (about $6,556 USD), respectively.
Body Part Insurance
If your livelihood is based on a body part, then what would you do if you could no longer use it to earn your paycheck? That’s the difficult question many people face. For example, Bruce Springsteen once insured his voice for as much as $6 million, and David Beckham insured his legs for about $195 million.
Of course, valuable body parts aren’t limited to celebrities. A variety of professionals could face financial hardship if their main money-making appendage was damaged. For example, a surgeon who can no longer use their hands to operate or a chef who could no longer taste their creations could lose their livelihood.
You’ll have a hard time getting a body part policy from a major company like Geico or Nationwide. Instead, you’ll likely need to track down a specialty insurer like Lloyd’s of London.
Alien Abduction Insurance
The world is a dangerous place, and perhaps the universe is as well.
Alien Abduction Insurance covers post-abduction medical bills. A few companies do provide this unusual insurance, including the UFO Abduction Insurance Company, based in Altamont Springs, Florida, and the aforementioned Lloyd’s of London. If you want to protect yourself or a loved one from an unexpected alien abduction, you can secure a lifetime policy for $19.95 for $10 million in coverage.
For many of us, the weird types of insurance above don’t necessarily merit the price we’d pay, even if the cost is small. But for some consumers, the peace of mind is worth it. Plus, if a snowstorm ruins your wedding, if your entire office wins the lottery, or if you are abducted by an alien, you may just find that one of these weird insurance policies can help offset the costs of the unexpected — no matter how unlikely.