If you think you are good without any personal insurance backing you up, you may want to think again. It only takes a second for your life to transform from one phase to a completely new and unexpected phase, and you end up in a problem you never saw coming.
In such a situation, you should stay prepared, and having the right type of insurance will help you do just that.
1. Financial Protection
One of the most important reasons why you should get insurance is that it provides financial security. For example, life insurance provides a lump sum payment to the beneficiaries in the case of the death of the policyholder. This amount can cover funeral expenses, pay off the placeholder’s debts, and also provide for the future expenses of the placeholder’s family. In the case of a sudden death, the family does not have to worry about the finances immediately, as they will have money to support them. There is also income protection, so if you are unable to work because of sickness or injury, the insurance company provides you with a portion of your income so that you can maintain your lifestyle while also getting treatment and not having to worry about the expenses.
2. A Peace of Mind
You never know what can happen tomorrow, and you and your family may be living the best of lives today, but one unforeseen event can topple everything and completely ruin all your plans. There could be an illness like during the time of Covid, or a serious injury that takes you and your family by shock. As such, you do not want to stay unprepared in such an event, as it can disrupt your peace of mind, while on the other hand, having insurance can make you feel less stressed during times of turmoil, as it provides you with financial assistance so that you do not have to depend on others or worry about how you will manage your finances. Insurance plans provided by firms such as Colby Insurance Group usually cover hospital bills, partial and permanent disabilities, and common illnesses, while some insurance plans also cover hospital expenses when travelling abroad. You can also get your insurance personalized to meet your requirements.
3. Covers Bodily Injury to Others
In case an event happens where your dog bites someone, and the victim sues you, you may find yourself out of money to pay up. The victims can claim medical expenses, emotional distress, and any lost wages due to missing work because of the injury. All these costs could quickly spiral out of your control and add up to an amount that you find impossible to pay. However, with the right insurance policy, you will find yourself relieved as you would not have to worry about the expenses yourself, and the insurance company will pay them for you.
4. Protection of Assets
An insurance policy can also help you protect your assets, such as your business, in the case of a burglary, natural disaster, fire, or acts of terrorism, and may also offer protection against fraudulent acts by other companies that hamper your business.
5. Customizable Policies
Personal insurance policies can be customized to your liking so that they meet your preferences and requirements, and insurance providers may provide many different types of plans that have different coverage levels and allow you to choose policies that align with your requirements, which is especially helpful if you are on a strict budget. And because of the ease of alteration to the policy according to your circumstances, you can get maximum coverage and keep the policies relevant to you.
Conclusion
Getting insurance is a part of your financial planning journey and offers you protection against the many uncertainties and unpredictability of life. You should go over different policies and different plans, customize some policies to your liking, and get a policy that provides you with maximum coverage and fits your budget, and ensures that you and your loved one stay safe and protected.
Photo Credit:
Photo 1, Credit to Freepik || Photo 2, Credit to Freepik (CC0 1.0)
Sources:
https://www.sc.com/in/stories/insurance-atl-five-reasons-for-insurance/
https://www.dolmen-insurance.ie/top-5-benefits-of-personal-insurance-for-your-peace-of-mind
https://www.centralcarolina.com/5-reasons-why-personal-insurance-is-necessary/
