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The Reasons Why We Need Insurance

Updated on June 17, 2011

Who Needs Insurance Exactly?

Everyone needs insurance, and it is one of those things in life where there is just no getting around it. I know that not everyone can afford it, but sometimes you can't afford not to have it either. We need insurance for all kinds of things. We need it for our health, for driving, for the possible loss of property, and much more.

Finding and paying for insurance isn't something that people look forward to, but is just a necessity very often. Insurance turns out to be one of those needs, and not really a want.

We can't always protect ourselves from others, or even from nature. Some people really do rotten things to others, and nature can have a way of getting carried away sometimes, like as seen in tornadoes and the damage they can cause. Sometimes we bring harm onto ourselves even, though that isn't the intent. These kinds of things are where insurance can be a very handy thing to have. Another risk may be of a speculative type, say as taking risks in the stock market.

There are many kinds of risks, as I mentioned above. Some others may include things like personal liability, or risk of being hurt by others choices. For example if you entered into a contract with another person and they later break their portion of that agreement. That can bring great financial devastation perhaps, and you need protection in that case. You can't control what others are going to do, but you can plan ahead and learn from others mistakes or lack of planning.

Considering the Cost vs. the Risk

So the next thing to do is consider the cost of not getting insurance versus the potential cost of having it. The protection you receive along with the peace of mind is very much worth it to many people, to the degree they pay quite a bit sometimes to have it. Some do that after learning the hard way, and don't ever want to go through an ordeal again. What gets tricky is when you just can't afford it, then you must adjust your life perhaps accordingly. Or, you can shop around until you find what you need, and also make a point of voting as a citizen if and when those things come up for a vote. Your vote may not only be helping you, but many others as well.

Then of course are the insurances that are required, and those seem to be a bit more cut and dry. If you don't get those, you are in trouble, basically. Like with a mortgage, you need homeowners insurance, and with a car, you need car insurance in most states.

What kind of coverage does your family need?

There are different levels of coverage and their costs vary.  You need to figure out what kind your family needs and weigh out everything.  Medical insurance plans can be costly, but when you consider the levels of deductibles and co-payments required, sometimes the more expensive plans turn out to be the more affordable in the long run. 

If you don't have any insurance at all, for things that are outside what the law absolutely requires, it is wise to plan ahead on some level.  You can save up money as an insurance for a "rainy day", as some people do like for dental insurance or for a hospital or nursing home stay.  This would be a good start, and perhaps later on you can afford more insurance of things will change to the degree that things work out.  Doing what you can is smart, but stressing out too much about things won't help matters, and can hurt your health.  One great tip that I have seen help a lot of people is to ask others what they do for their health needs, for example.  Elderly people need insurance and medicare only covers so much, and there is a deductible every year along with only an 80% payment after that.  Many elderly simply can't afford much, but there are some good and some bad co insurances out there.  You can literally save hundreds of dollars if not much more by making good choices in that regard.  People that have a good plan will be happy to share with you what they have found.  Call and inquire if it might work for you or your loved ones as well.

Ideas to help people whose employer doesn't offer insurance

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    • monicamelendez profile image

      monicamelendez 5 years ago from Salt Lake City

      I'm the primary income source in my family and I"m glad that I have a term policy. That said, we need to get a policy for the hubsters...

    • oceansnsunsets profile image

      Paula 5 years ago from The Midwest, USA

      Hello John, thank you so much! From what I have seen in life, I agree with what your observations are also. It is so important to think and plan ahead for possible catastrophes that we hope will never happen.

      Have a great day, and take care. Thank you for the vote and visit. :)

    • John Sarkis profile image

      John Sarkis 5 years ago from Los Angeles, CA

      Hi oceansunsets, this is a really great and informative hub. I've been in the healthcare profession for most of my life and can vouch what you're saying is 100% correct. I've always made sure I had health insurance. I've seeing patients owing up to 1 mill in medical bills, because, you will not qualify for Medicaid/Medi-cal unless you're indigent, and if you have the capital hospitals/doctors will come after you for the bill....

      Take care - voted up


    • oceansnsunsets profile image

      Paula 5 years ago from The Midwest, USA

      Hello Sakshisingh, thank you for your comment and visit to this article. I am with you, in that I am glad our family is insured also. These are uncertain times, that is for sure, and it makes more sense than ever to be wise in these kinds of things, and in every area of our finances also.

      Thanks for stopping by, and have a great day.

    • sakshisingh profile image

      sakshisingh 5 years ago from Haryana, India

      A nice article on why one needs insurance. It is mandatory to have an insurance cover in these days of uncertainity. I am happy my family is insured.

    • oceansnsunsets profile image

      Paula 6 years ago from The Midwest, USA

      Thank you very much! I appreciate your kind words :)

    • PhoenixV profile image

      PhoenixV 6 years ago from USA

      This is a very informative well done article.