Why do I need insurance?
Why do I need insurance? This is the first question most people ask when the subject comes to mind. You have insurance for your automobile mostly because it’s required by law. If you have a mortgage on your home, you are required to have insurance. Even if you own your home outright, or own a rental property, you should still have insurance to cover damage or personal injury as those costs can quickly overwhelm most household budgets.
What about a personal crisis? What if something happened to you and you were unable to work for weeks, months or even years? Or worse yet, what if you were no longer here to provide for your family? How will they make the mortgage payment, buy groceries or pay college tuition? Some employers provide basic disability insurance and even basic life insurance. But this insurance may not continue if you leave the company or change jobs. Most likely, you can’t take it with you and trying to find coverage when you’re looking for a new job or changing careers will be the last thing on your mind.
That’s exactly why personal insurance is available. Whether it’s disability insurance to supplement your income after an injury or any of the various forms of life insurance to protect your family’s future if you are no longer around. Certain life insurance policies even include options for disability. And as you get older you might need home health care or around the clock nursing care – long-term care insurance is designed to cover those costs and prevent you from depleting your savings.
Maybe you think “I’m still young, I’ll look into insurance when I get older and really need it”. Don’t put this off too long – the cost increases as you get older and certain medical conditions could prevent you from qualifying at all. Keep in mind that there are many different types of insurance available and if you are considering coverage make sure it’s appropriate for your specific situation. Always consult with your financial advisor and make sure that they are including a review of your insurance needs as part of a comprehensive financial plan.
