subject: Protection When Life Throws Negative Curve-balls Your Way [print this page] When budgeting, many people think of insurance as an extra expense and something that they can do without. After all, with insurance you only see the benefits if something happens and chances of that are minimal. Well as minimal as the chances may be that you need that health insurance, life insurance, or home owner's insurance, there are people filing claims in these realms everyday and even if you haven't really seen the need in the past for your insurance, it doesn't mean that you don't need to protect yourself.
Health insurance is probably the only insurance where there are some benefits before you actually need an incident to occur first. Medical insurance allows you to have yearly routine exams. Exams that are important to prevent sicknesses from becoming bigger problems because they have been identified in their early stages. Health insurance also provides protection when major medical illnesses occur. Depending on your coverage, it defines your financial liability when these events happen. Even with insurance, depending on your medical condition these bills can be significant. Without any insurance, you may find yourself in financial chaos and that burden doesn't help when you are struggling to regain your health which should be your number one priority.
The biggest purchase you probably will ever make will be your home. If you have an outstanding mortgage of the property, the bank will insist you get homeowners insurance to protect their investment. If you own your home outright, you still want to have protection on both the structure and the contents of your home in the event of an incident. There are some places where natural catastrophes occur more frequently. For example, Florida and Texas have many hurricanes and California is prone to earthquakes and natural fires. Homes need to be protected from damages arising from these events. The contents of one's home need to be protected from these disasters as well as burglaries.
Another insurance that is required is car insurance. Some only carry the minimal amount that is required because they don't want to pay a high premium. Auto insurance not only allows you to obtain another vehicle in the event an accident totals your car but can also protect your assets if someone else was injured as a result of your negligence. Even if you're the safest driver and take all precautions, no one can protect themselves 100% from the misjudgments of another driver.
Insurance benefits may not always be seen directly. It allows you and your family protection in an unfortunate event that can take place at any time. It protects the assets you have worked hard to accumulate. No one can predict when misfortune will befall them, but at least with insurance you can protect you and your family with financial security when those events do occur.
