Paul was debating whether he should get life insurance. "After all," he thought, "Why should I get life insurance? My family will take care of me." What Paul didn't know was why so many people have some form of insurance in their lives. He couldn't figure out why. No one told him the importance of carrying life insurance for himself...

There are millions of people who suffer from not knowing why they should get insurance. Insurance can be in many forms including life, health, and auto. Insurance can be purchased for almost every financial risk. Fire, theft, death, accidents, and illness are among the most common risks for which people purchase insurance. Professional athletes can insure themselves against injury. Singers can insure their voices and even their legs if they are used extensively in their acts. Actresses and actors can insure their face as this is what brings the public to view their performances. All of these people earn their living through special skills yet common people use insurance to protect them as well. It's wise to purchase insurance for two basic reasons:

• 1. To protect you and your family from suffering hardships because of an unexpected financial loss.
• 2. To meet your obligations to others who might suffer serious injury or loss on the account of your actions.

People who don't have insurance might be able to squeeze by without too much of a loss if the damage is minimal. However, without some type of insurance protection, a major accident, fire, or illness could cause you to spiral into financial ruin. Having this protection against major risks will give you security and peace of mind.

Insurance protection also helps our economy. It makes it possible for individuals to undertake certain risks which they otherwise couldn't do. Let's say you wanted to buy a house for $100,000 but only had $20,000 to pay for the down payment. Of course you'll want to borrow the rest to pay it off but one condition the lending firm may impose on you is to buy insurance to protect the investment. If the home was completely destroyed, your insurance company would pay of the loan provided that the coverage is available.

Insurance companies don't put premiums in a safe and wait until something happens. Instead, they put the money to work by investing some of it. Most of their investments are simply loans to private individuals, business, and the government. This money is lent for funding to build houses, office buildings, planes, ships, factories, schools, among other things. This creates jobs and also helps our economy. In addition, the income received from these investments helps in keeping the cost of insurance premiums low.

Insurance also helps our financial system in other ways. It stands to protect our standard of living. For example, if a disaster strikes, insurance provides the necessary money so that people's purchasing power isn't destroyed. A temporary decrease in buying on a larger scale could result in less production and a general financial slowdown. There are three basic types of insurance protection:

• 1. Life Insurance - Protects a person and family against loss of income due to death of the insured.
• 2. Accident and Health Insurance - Protects a person against medical expenses and loss of income because of illness, old age, and accident.

Property and Liability Insurance - Property Insurance protects individuals from financial loss if property is damaged, destroyed, or stolen by others. Liability Insurance protects people when others sue them for injuries sustained or by damaging their property such as an automobile.