What is Insurance and Why is it Important?
There are a wide variety of insurance policies that you may have heard of in the past including automotive, home, health, and life. There are many reasons as to why you might be wondering what the benefits of insurance are, whether you’re purchasing a new home or if you’re getting ready for retirement. Below are a few examples of the most popular types of insurance, what they include, and why it’s important that you consider purchasing them for yourself and your family.
When you sign up for automotive insurance it gives you the protection you need while you’re operating a motor vehicle. Depending on which state you live in, certain types of auto insurance may or may not be required though it is essential that you have a sufficient amount of coverage. In the event of an accident not only are you responsible for paying for the damages to your car, but you will also be responsible for the medical bills and damages to the other party’s car. Without insurance, you will have to pay all of the associated costs out of pocket. Also, if it’s illegal to not have coverage and you’re caught without it that can lead to license suspensions, fines, and even jail time.
As a home owner you like to think that as long as you stay on top of repairs, your house should never encounter any issues but that isn’t reality. Unfortunately, there are a variety of circumstances that can arise and force you to be in a position where your house needs repairs. A lot of these situations are unpredictable and can happen at any time, putting you in a position where you might not have the available funds to repair your home. For example, in the event of a natural disaster such as a flood, you may have to replace all of your flooring, drywall, and even your personal belongings. Without insurance, you have the option of living in a damaged home or paying for the repairs yourself. Whereas your coverage might help to cover most if not all of the costs associated with returning your home to new.
Your health is one of the most important things that you have and it can be difficult to deal with terminal illnesses or even the smallest cold without medical help. Imagine all of the times that you will have to go to your doctor throughout your life, whether it’s because of a broken bone or because you’ve noticed a strange growth that you’ve never seen before. Without health insurance you will have to pay for each individual visit instead of putting money towards a premium that pays most, if not all, of your costs. Even though a single doctor’s visit might not seem expensive to you, receiving treatments can cost thousands of dollars.
Health insurance is also important for people that will be required to take medication throughout their lifetime. Depending on the plan that you sign up for, you will be able to have your prescriptions covered so you don’t have to pay out of pocket for any part of your medical treatment. Another popular benefit of health insurance is the ability to get a private room in the event that you ever had to be admitted to a hospital.
There’s nothing worse than being in a situation where you feel like you can’t provide for your family, even after death. Life insurance is a way to ensure that all of your personal debts are taken care of and to give your family the funding they need to deal with your final arrangements. Considering that an average funeral can cost thousands of dollars for a single person, your life insurance can take that burden off of the shoulders of your loved ones. It’s also important to consider life insurance as a way to make sure that your family is taken care of after you have passed on. It can be difficult to manage bills and finances off of a single salary when you’re used to living off of 2. Your life insurance gives your family the ability to figure out a future plan for how they are going to take care of themselves without being rushed to make a decision.
There are plenty of other types of insurance that you can purchase, whether you’re interested in travel insurance for a trip or if you want to insure your jewelry or other personal belongings. Regardless, every type of insurance is designed to give you the protection that you need in the event of an emergency. Instead of having to try to find funds when there just aren’t any, your insurance plans are designed specifically for covering you in the most difficult times of your life.