Life turns on a dime. One can never predict when insurance will be needed. Many people only purchase insurance when it’s required, like when they’re buying a new home or car. Paying for insurance now – even if it isn’t required by your state or lender – can be an important safety net if the unexpected happens. Here are some situations when insurance could protect you from a financial loss:
An unexpected illness
Even if you’re in good health, an unexpected illness or injury could require you to pay out-of-pocket if you don’t have health insurance. If you’re uninsured and unexpectedly require surgery or other emergency care, your expense will be for the full amount of the services, which could be thousands of dollars. While you may save money every week by opting out of an employer-based or individual health insurance plan, the costs of being uninsured could be much greater in the long run.
Natural disaster or home invasion
Homeowners and renters face the risk of their property being damaged by a natural disaster or a home robbery. If you are not insured, it may be costly to replace all of your belongings. You may not think your belongings are worth the insurance premiums, but replacing electronics alone could cost thousands of dollars, depending on what you own. If you are insured, your coverage can help you replace these items.
Loss of a loved one
It can be tough to think about, but being prepared for the loss of an income earner is the best way to protect your family. A life insurance policy may help loved ones start with a clean slate by helping to pay off the mortgage, credit card bills, outstanding loans, household bills, child care expenses, tuition, and final expenses, like funeral costs and taxes.
The real benefit of insurance is to reduce the financial risk and give you the support you need when the unexpected happens. Live life knowing you’ve helped protect your loved ones financially.