7 Types of Insurance You Never Knew Existed

Worried about aliens or ghosts? Take out an insurance policy!


Key points

  • The purpose of insurance is to reduce financial uncertainty and protect yourself against certain losses.
  • Life, home, and auto are the most common types of insurance, but there are plenty of insurance policies for things people may think are ridiculous.
  • Whether it be insuring a body part, covering your fear of aliens or ghosts, or being left at the altar, there are insurance policies that can protect you from unexpected losses or events.

We all know the basics of insurance. The more common types include cars, homeowners, and life insurance, but there are some insurance policies that you may have never heard of. We have rounded up the top seven unique policies available — some of which may be more useful than others.

1. Body part insurance

Many celebrities insure their body parts for large amounts of money in case something happened to them that would prevent them from performing their job. For example, model Heidi Klum has reportedly insured her legs for $2.2 million dollars. While most people don’t require body part insurance, it may make sense for certain celebrities.

  • Rolling Stones’ guitarist Keith Richards’ hand: $1.6 million
  • Singer Bruce Springsteen’s voice: $6 million
  • Singer Dolly Parton’s chest: $600,000
  • Singer Mariah Carey’s voice and legs: $35 million
  • NFL player Troy Polamalu’s hair: $1 million
  • Soccer great Cristiano Ronaldo’s legs: $144 million
  • James Bond star Daniel Craig’s entire body: $9.5 million

2. Death by laughter insurance

Lloyd’s of London has taken the concept of “killing it on stage” quite literally. Seeking to safeguard against the unlikely scenario of audience members dying of laughter, a comedy troupe purchased an insurance policy in case any of its audience members died of laughter while watching one of their shows.

3. Facial hair insurance

Lloyd’s of London has issued some unique policies. In 1992, a Santa Claus who took his job seriously insured his iconic white beard, and Australian cricket superstar Merv Hughes reportedly insured his legendary mustache for a whopping $360,000.

4. Ghost and poltergeist insurance

Are you afraid of ghosts? Although it may sound strange, this type of policy actually exists! Ghost insurance covers any damage caused by paranormal activity (such as hauntings) and helps protect your property if something were to happen due to supernatural occurrences. The hotel owner of the Royal Falcon Hotel in Lowestoft, England, insured his staff and customers against death and disability caused by ghosts, after seeing a ghost on the property.

5. Alien abduction insurance

Believe it or not, alien abduction insurance is available if you are afraid of waking up being prodded by extraterrestrials. This type of policy provides coverage in case an individual is abducted by aliens and held captive against their will. While some companies sell them as a gag, some insurers are serious about their policies and have even paid out claims!

More: Check out our picks for the best car insurance companies

6. Cold feet insurance

Worried about being left at the altar? Cold Feet Insurance provides couples with financial protection if one partner backs out at the last minute before the wedding. It typically covers costs associated with canceling wedding plans such as venue fees, catering costs, dress/tuxedo rentals, etc. Couples can rest assured that they won’t be left high and dry if one partner suddenly decides they don’t want to go through with the marriage after all.

7. Lottery insurance

If you’re lucky enough to win a lottery jackpot — congratulations! Many offices have a lottery pool where everyone splits the proceeds should they hit the jackpot. A lottery insurance policy covers the business from financial loss of having to replace its employees if the office pool wins the lottery and they all hand in their two-week notice the next day. This occurred in the UK, where seven office workers quit their jobs after winning $6 million each.

While some of these insurance policies may seem far fetched, they actually exist because people wanted to protect themselves against something very unique and were willing to pay for it. Even if you don’t face the risk of a ghost disrupting your workday, you are likely to have gaps in your insurance coverage that could leave you exposed to financial hardships. Take a closer look at your policies and see where you might need some additional support — you might be surprised at what you find.

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