The Benefits of Insurance

Life is full of terrible surprises. You might get sick or injured, get in a car wreck, your house could burn down, or you could simply drop dead! Fortunately, there are insurance policies to protect you from the devastating financial consequences of these events. It is crucial to have adequate insurance in the basic categories of health, vehicle, home, and life. A basic emergency room visit could end up costing you well over $10,000, which is often enough to send a family into a financial hardship or even bankruptcy. Below is a list of the benefits of having insurance for these situations.

Health Insurance

No matter how great you feel today, it is impossible to fully control the level of your health. Even people who eat healthy and exercise are not immune to expensive healthcare problems. In fact, rigorous exercise can make injury more likely. Runners, cyclists and other athletes often need medical treatment for minor injuries. It is also impossible to prevent the contraction of diseases. Medical costs are rising consistently and there seems to be no signs of stopping. The main benefit of health insurance is being able to share medical expenses with your insurer. Having a $25 co-pay is much better than a $500 bill for a basic checkup.

When you don’t have health insurance, you don’t get to see a primary care physician. The only option for the uninsured is to go to the ER, where you can expect excessive wait times and less individualized care. Having a good primary care doctor is essential to long term health and is perhaps the most  important insurance benefit in this article.

Vehicle or Car Insurance

First of all, being able to show financial responsibility with liability insurance is a requirement in 49 states.  The only state that does not require liability insurance is New Hampshire, but that’s beside the point. Even the best defensive drivers can’t avoid being blindsided by an intoxicated illegal immigrant without insurance. Having adequate coverage will help you through such situations by replacing your car and paying for medical costs. In addition, a good car insurance policy will provide you with glass replacement and repair of minor damage.  

Homeowner’s Insurance

A devastating event, such as a fire or flood, is not something most people can afford to pay out of pocket. Fire and flood damage to a home can get very expensive, and it some cases requires the entire home to be demolished and rebuilt. If you’re like most people and financing the property with a  mortgage, then homeowners insurance is going to be required by your lender. Property is usually the most valuable asset of a family, so it’s crucial to protect it with a robust insurance policy.

Life Insurance

Taking out a life insurance policy is all about protecting your family. If you die today, would your family be able to handle the bills and expenses? Most people would answer NO to this questions. Not to mention, a simple funeral will cost thousands of dollars. Life insurance comes in many forms and can provide many different benefits. Some policies will cover you for a fixed amount of time, while others have a guaranteed payout when you kick the bucket. Some of the most common forms of life insurance are whole, term, and universal.

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Insurance Institute

We hope you learned more about the benefits of insurance.