Insurance helps limit risk. When you buy insurance, you transfer the bulk of the risk to the insurance company. In exchange, you pay them an ongoing fee. Another way to look at insurance is that it spreads the risk. So rather than one person suffering a devastating loss, everyone in the risk pool suffers a small manageable loss via a regular premium payment.
Vehicle Insurance
Car insurance protects you in the event of an accident. If you are found at fault for causing all or even part of an accident, it can cover your liability and medical expenses. Comprehensive and collision insurance cover vehicle repairs under differing circumstances.
Most states require that you have liability insurance by law. But even if it was not required, it would still be a good idea to have it. Being found liable in an accident can result in expenses into the hundreds of thousands or even millions of dollars. Getting into an accident without car insurance could destroy your financial future, so, “don’t leave home without it”.
See The Ins and Outs of Car Insurance for more information.
Home Owners’s Insurance
Your home will probably be the largest purchase you ever make. You want to be sure that your home is protected no matter what happens. Home owner’s insurance can protect you from a variety of risks. If a visitor accidentally gets hurt on your property due to negligence on your part you can be sued, fires can destroy your home and all its contents, and burglars can break in and steal your possessions. But if you have insurance, you will be reimbursed.
Since they often own a greater portion of your home than you do, mortgage lenders require homeowner’s insurance because they also want to know they would be reimbursed if your home was damaged or destroyed. See: Home Owner’s Insurance for more info.
Life Insurance
Many people feel uncomfortable talking about life insurance because it forces them to think about their mortality. But as the old saying goes, “Failing to plan is the same as Planning to fail”. Sooner or later everyone dies. The following chart shows the odds of someone dying in any age group. As we can see from the first line in the table, in any given year, roughly 1.7% of the population will die.
Age Group Male Female Total Deaths per 100,000 Percent All Ages 911.7 829 1740.7 1.7% Under 1 Year 603.3 500.4 1103.7 1.1% 1-4 25.3 21.2 46.5 0.05% 5-14 15.2 11.5 26.7 0.03% 15-24 99.7 38.4 138.1 0.1% 25-34 177 78.9 255.9 0.3% 35-44 257 141.6 398.6 0.4% 45-54 490 297.3 787.3 0.8% 55-64 1,111.9 669.8 1,781.7 1.8% 65-74 2,178.6 1,402 3580.6 3.6% 75-84 5,074.1 3,710.9 8785 8.8% 85 and Over 14,229.6 12,666.1 26,895.7 26.9%
Unfortunately, when this happens, their family is left in a challenging position because, in addition to covering everyday living expenses, they also have to handle medical bills, funeral expenses, and more. Life insurance is a way that you can show how much you care about your loved ones and a way that you can ensure that their quality of life will continue even after you die.
Why You Need General Liability Insurance
If you are a small business owner, having business insurance helps mitigate the risk of business ownership. If you have employees, you want workers’ compensation plans and other insurance plans to protect yourself and your employees in case they accidentally damage another person’s property, business, or reputation during business hours.
Now is the time for you to review your insurance policies. You want to ensure that you have insurance to cover your potential liabilities. You also want the peace of mind that comes from knowing you have enough insurance to cover you if an unforeseen disaster strikes.
You might also like:
- Tips for Buying Life Insurance for Young Families
- What You Need to Know about Different Types of Homeowners Insurance
- 3 Ways to Pay Less for Insurance
- The Insurance You Need to Protect Your Family
- Things to Consider Adding to Your Auto Insurance
- When Should You Get Life Insurance?
- What to Consider When Shopping for Health Insurance
- 4 Things to Know Before Buying Car Insurance
- When is the Right Time to Buy Life Insurance?
