It has always been important to carry insurance on just about anything you own of value. This includes your home, your cars, your farm, your business which includes employees, buildings, machinery, and stock, your jewelry, your goodwill, and most importantly, your health and your life.
You need insurance as a buffer between having peace of mind or having to bear heavy financial losses with the costs coming out of your pocket if something unfortunate happens. If something happens and you are not insured, you will probably regret the fact that you didn't have insurance.
Insurance is a necessity of life. Consider the consequences of not having enough insurance and/or not having insurance at all. Not having insurance coverage can become much more expensive in the long run if something tragic happened like a bad accident, a long term debilitating injury, or death.
There are a lot of "what if" questions that you should ask yourself concerning insurance such as:
•What if I have a serious injury or illness and have no health insurance.
•What if I, my spouse, or one of my children should die unexpectedly and we have no insurance to cover funeral and burial expenses.
•What if I have an accident in my car and I have no automobile insurance. How will I cover the damages.
•What if my house catches fire and burns down. How will I be able to rebuild it, or repair fire and smoke damage.
These are legitimate questions that should be asked over and over again. The only viable answer to any of the above questions is to have dependable insurance coverage.
Insurance can be very expensive. On average, nearly 10 percent of our incomes is spent on insurance. It's a lot, but most people, especially those who have experienced an accident or the death of a family member, can attest to the need to be insured.
The smart way to buy insurance is to not become over insured. Many people buy way more insurance than they need. The reason. It makes them feel safe and secure. This is great if you can afford it, but you should learn to minimize your insurance costs by buying only what is necessary to cover your immediate needs.
Think about the types of insurances you need and figure out what the bottom line is for each coverage.
•Life insurance: Many people insure themselves for hundreds of thousands of dollars, even millions. This sounds good, but who are they trying to impress. When they die, the insurance money is going to be spent on God knows what. A reasonable amount of life insurance would be enough to cover funeral expenses plus provide an additional cushion to cover other costs, especially if there are children involved.
•Automobile insurance: The best way to shop for insurance is to get quotes from at least three insurance companies. Try to understand what your needs are before you start looking to buy.
As with buying anything else, you should always shop around for insurance and compare rates. Don't take the first thing that is offered to you unless you have done your homework beforehand and know the price for the coverage can't be beat.