Insurance

young and healthy, so why pay the money for an insurance policy? The answer to

this question varies depending on the type of insurance your considering, but as a

whole insurance is an important part of your financial plan.

First, some types of insurance are required by law or by lenders. If you have a

mortgage, for instance, your lender will require you to have homeowners insurance.

Lenders and state laws require auto coverage as well. For this reason, you really do

not have a choice about purchasing auto insurance.

Insurance protects you from the things that you cannot anticipate. Accidents, natural

disasters, or unexpected illnesses can strike without warning. The medical bills,

repair bills, and other expenses caused by these events could wipe out your finances

completely. Consider, for instance, if your home were to catch on fire. If you did not

have insurance, you would have to pay for all of the repairs and replace all of your

belongings out of your own pocket. Chances are you do not have this type of money.

Health insurance is one of the most common types of insurance to ignore,

particularly for those who are in good health. Health insurance is expensive, but if

you end up with cancer or some other devastating illness, you will not be able to

afford the necessary treatment without health insurance. Cancer treatment, for

instance, can cost millions of dollars. Without insurance, you would not be able to

get access to the treatment that could potentially save your life.

Life insurance is another product you may not want to purchase. However, if you die

without it, those you leave behind will have to pay thousands of dollars for your

funeral expenses. You can purchase a small policy for an affordable price and be

able to protect your loved ones after your death. As you can see, insurance is

important for a variety of reasons, and living without it is a dangerous gamble that

you should not make.