Although a lot of people wouldn’t want to consider insurance  as a part of their lives, we can’t deny that it’s important and necessary as well. Insurance is a critical element in managing risk within your financial planning efforts.
What’s the use of earning a lot of money and building up your investments, only to have unexpected yet unavoidable events causes any of your major assets or investments to be lost, stolen or damaged?
Sure, these are not good things to have to contemplate, but who can escape the inevitable? We can’t predict accidents, acts of god or other people; what we just have to do is to be prepared at all times. Insurance is one way to be prepared for the unexpected.
Insurance comes in different types for many purposes. There are different kinds to choose from. There are also a lot of companies offering different kinds of insurance according to your needs.
Term life insurance is a kind of insurance that provides financial support at a given period of time for people you’ll leave behind when you pass away. Term life insurance provides sustainability for your beneficiaries up until the time they have fully recovered from your debt or the time that they are ready and stable.
There is also disability insurance for working people. This disability insurance covers up the income lost when a person is unable to work for a long time because of disability. Having both good short and long term disability coverage is recommended.
Auto insurance, on the other hand, insures your precious vehicle. Auto or vehicle insurance also includes payment for damages you may have caused, or injury you may have caused to another driver. It will help protect you also in the case that you are sued by others involved in an accident, whether or not you are found to be at fault.
Car insurance helps you pay for repairs and hospital bills easily. You could apply for it on an auto insurance company that will support costs if your vehicle is damaged. Just be sure to be wise and practical in choosing the auto insurance company you’ll apply to so as to make it easier and more convenient for you.
Health insurance is also one of the most essential insurance present today. Following a health insurance plan will help you cover up expenses from accidents and other unlikely circumstances.
Some of the treatments included in these plans are medications, x-rays, hospital stays, blood tests, and more. Moreover, a health insurance plan will allow you to choose quotes and pay off your bills more conveniently. Plan coverage varies greatly, so be sure to look carefully at deductibles, co-pays and other potential out-of-pocket expenses when selecting a health plan.
And with fewer employers providing medical plans or requiring employees to pay more of the costs than they once did, in many cases an individual health plan is needed to supplement your employer’s plan or cover you and your family at a lower cost out-of-pocket cost and with better benefits.
So, with all these facts, why is insurance considered to be a key to one’s financial plan? Well, it’s basically because having insurance helps you sleep better at night, knowing you are protected from unexpected financial hazards that may come your way.
Having your life, property and health insured will give you less problems in case these are damaged or lost. It helps you avoid financial hardships and lets you recover more quickly.
Although you may think that you’ll only get the benefit when you die, get hurt or damaged physically and financially; the thing is, at least you’re prepared. You won’t have to worry as much about financial problems caused by accidents and other unexpected events, but remember to always be as careful as possible even if you’re insured.
Having the right insurance coverage is a basic component of any sound financial plan!