- Personal Finance
The Reasons Why We Need Insurance
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.