Life is too unpredictable, and there are risks everywhere. Whether you are walking on the street, driving to work, or when you are visiting a new country.
Although insurance cannot protect you from the unpredictable nature of life, it could help you build a new life if tragedy may strike.
The bottom line is that you need insurance security to protect you from losing everything you have.
Why Do You Need Insurance?
So, your hard work paid off to build a foundation for your financial footing for you and your loved ones; how can you secure it.
The answer obviously is insurance. There are multiple reasons why you might need insurance to secure your life.
Here are some scenarios:
Scenario 1: There is a crisis, and your family cannot deal with financial liabilities such as debt, auto loans, personal loans, or credit card payments.
Scenario 2: Your family is dependent on you even after you are gone, whether it is a decrease in household income or for your children’s future.
These scenarios prove why it is vital to have insurance, and there is always a need for one.
Whenever you buy insurance, your insurance company can overcome your potential loss in exchange for a monthly fee. Insurance helps you to own your own home, drive your own vehicles, maintain your standard of living, take care of your health care costs, take vacations, run your own business and provide for your family in the event of a death.
Types Of Insurance
You can be insured for almost anything; here are a few types of insurances available, which I think everyone should have.
Life Insurance
This type of insurance is financial compensation in case of death or disability. Life insurance helps you secure your family’s financial situation in case of your untimely death.
Life is indeed wholly unpredictable, and this insurance helps you provide your family with a lump sum amount of money if you died. This insurance also takes care of tax benefits helping your family and their future.
There are different types of life insurance you can get, which vary concerning its policies.
Term Life: This is the primary type of insurance covering you for a specific period, usually 10,20 or 30 years. If you die during your insurance period, your family is provided a hefty sum of money for your death. If, in any case, you do not die during the said period, no money will ever be paid to your family.
Whole Life: This type of insurance covers you for a lifetime, which is why it usually costs more than term life. Your family is provided with a certain amount of cash on the likelihood of your death.
Endowment Plan: This is when some part of your premiums is put towards your death benefit, which ultimately goes to your family.
Health Insurance
This type of insurance covers your health care or medical costs. In some countries like the United States, health coverage is a requirement by federal law. This type of insurance reimburses all medical costs you may ever come across.
With this kind of coverage, you can make regular payments to keep your package active. You sometimes have to pay a nominal fee if you plan to visit a physician or get a prescription.
You also have to pay deductibles when you pay some amount of money before your insurance actually starts.
This type of insurance is beneficial, especially if in times of medical emergency. The burden of the cost of treatment and medical care reduces and gives you peace of mind.
Car Insurance
Car Insurance is a convenient type of insurance and a requirement to fulfill before driving a car in many countries, including the United States. There are various types of car insurances which cover various aspects, including:
Liability: This type of insurance covers bodily injury and property damage
Collision: This insurance covers your car’s cost if involved in a crash, regardless of who is at fault.
Personal Injury Protection: This insurance covers the driver and passenger’s medical costs in a said crash.
Comprehensive: This type of insurance covers costs from weather damage or vandalism, for example.
If you possess a car, in most cases, your country might require you to have one already, so it is best to look at discounts when shopping for car insurance.
If per se, you have taken a car on loan, your lender may most probably require you to get insurance to protect the car.
Renters Insurance
Renters Insurance takes care of damages that may be inflicted on your home, theft, and perils like the costs of someone’s medical costs due to an injury on your property.
Since a house is a considerable investment, you must have reliable coverage for it. However, you may have to pay extra or get extra insurance for unprecedented natural disasters like earthquakes and flooding.
You usually must pay premiums, which helps keep your coverage active. This is usually around $1000 a year. You must pay off deductibles before your insurance would pay for repairs.
This is an essential insurance type if you own a house, and at times renter’s insurance comes at a low cost. This type of insurance covers all your valuables in your house as well.
Disability Insurance
This type of insurance is almost as similar to life insurance as it provides financial coverage in an unlikely event. Your income could be reimbursed if for some reason or the other you get injured. Although keep in mind this type of insurance does not cover any medical costs or services.
There are primarily two types of disability insurances:
Short Term: Usually pays for a few months.
Long Term: Can pay your income until you reach your retirement age.
Children do not require to have this type of insurance, mostly because they have no income. Nevertheless, you could get it for yourself if you work in a life-threatening or dangerous job.
Travel Insurance
If you plan on going on a long trip abroad, travel insurance turns out to be compulsory as it helps you out on quite a few ends as life is well unpredictable. Travel insurance can help you with a few things, including:
Medical Care: Travelling can come with highly unexpected expenses, and it is often hard to find or understand other countries and how they work. Travel insurance can reimburse you and help you get emergency medical care.
Theft: Travellers are always vulnerable in new countries. Frequently travelers succumb to pickpocketing; hence travel insurance makes sure that you can recover your stolen items.
Cancellation: If for any reason you have to cancel your refundable tickets, travel insurance can recover all costs.
You should not need to get travel insurance for a short trip within your own country. However, for long trips, it is recommended to get one.
Conclusion
It is okay to feel a sense of self-preservation, as I believe it is normal. Everyone wants what is best for their family, their loved ones, and themselves. Insurance may not help protect you from the unpredictable, but it could provide you with the necessary tools required to rebuild a new life.
It would help if you always were a bit careful when planning to buy insurance. This is something you should give much thought to. Do not let the trepidation make you pay more than needed, which would indirectly restrict your budget, hence lowering the standard of living.
Life is inevitable, so is death, which is a morbid thought and is unavoidable.
