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5 Types of Insurance You Never Knew Existed

Could you name all of the unexpected things that might happen to you that would require financial assistance? Probably not—there are too many! But, believe it or not, there might be an insurance policy somewhere that pays out for even the most unlikely and wild of events. Like…

Alien Abduction

Called AAI (Alien Abduction Insurance) or UFO insurance, this policy might include medical coverage and psychiatric care after physical abduction, or a cash settlement payout in the case of pregnancy, medical examination, or death caused by aliens. Of course, to receive payout on any of these claims you’ll need proof. Depending on the details outlined in the policy, this could include taking a lie detector test and having a third-party witness.

Whether as a gimmick or a serious plan to ensure financial stability, to date over 100,000 alien abduction policies have been sold internationally. And, believe it or not, at least one company has paid for a claim—at the steady rate of $1 per year.

Falling Coconuts

Your vacation could be ruined if you’re struck on the head by a coconut and sent to the hospital. Good thing a UK travel company offers insurance for just that situation. And it’s not as far-fetched a scenario as it may sound. Falling coconuts cause roughly 150 deaths each year—that’s ten times the number of shark attack victims. In fact, one woman was struck on the head by a falling coconut while reading a book on vacation in Sri-Lanka, knocking her out and sending her to the hospital. Thank goodness she had “injuries caused by falling coconuts” included in her travel insurance policy, and her claim was paid out in full.

Winning the Lottery

No, this isn’t insurance that pays when you don’t win the lottery (wouldn’t that be nice). Instead, it’s a policy that might be held by a company owner just in case the office lottery pool wins the jackpot and everyone really does quit their job. The policy would pay for hiring and training temps and new employees.

Injury to Specific Body Parts

If you’re a rock star, a star athlete, a movie star, or a stunning super model, it makes sense to insure the part of you that helps generate your income. Famous soccer players and pop stars have insured their legs, an actress can insure her smile, a musician might take out a policy on his voice or fingers, and a food critic could protect himself by insuring his taste buds.

Getting a Hole-in-One

This unique policy can be taken out by individual golfers or a golf tournament organizer. For golfers, this insurance coverage is a smart move if you live in Japan, where those lucky enough to sink a hole-in-one are obligated to host and pay for a lavish party on the scale of a fancy wedding: a multi-course meal, drinks, entertainment, and souvenirs for guests.

Hole-in-one insurance can also act as a type of prize indemnity insurance that covers tournament organizers. A large cash prize or luxury vehicle for anyone who manages to make a hole-in-one in the tournament can be a huge draw for these tournaments. If a golfer beats the 12,000-to-1 odds of a hole-in-one, the policy will pay for the prize.