Money is the most inconsistent thing, yet most important. It is with proper income one can afford to buynecessities, own a house, give adequate education to kids, and secure life after retirement alongside fulfilling every dream. It surely sounds perfect, but rarely one can receive all of it. Since there is no financial stability, one has to often undergone through roller-coaster rides of income and expenditures.
Insurance or the risk-management tool is the help one requires during the monetory loss. It is a policy, which involves the grant of a certain amount by either a company or state to cover the loss of the insurer, who in return has to pay for specified premium.
Which insurances are necessary?
There are many types of insurances to cover major losses or provide financial aid. There are certain insurances that every individual should have. These are:
Life insurance: This one is undeniably the most important. The death of a family member disturbs the family both emotionally as well as financially if that person was an earning member. Death can come to anybody at any time. Life insurance pays for the funeral, burial, debts of the dead person and other such expenditures. Any individual would not want the family members to suffer after his or her demise.
Health insurance: Illness can strike anytime and create great difficulties. Disabilities to perform daily activities and hence unable to earn regular income for some time is a grave problem. Due to this, entire family suffers through financial loss. For such times, health insurance comes to rescue as it covers long-term expenses. It is important for the individual as well as the family’s health.
Property insurance: To buy any piece of property one has to work very hard and earn money to afford it. A small house or a big mansion, both are equally precious to the respective buyers. Property insurance covers issues like fire, weather or other damages. Many insurance providers also offer flood insurance, earthquake insurance, crop insurance, aviation insurance, marine insurance, builder’s risk insurance and landlord insurance. Saving property by investing some for its future mishaps is better than repenting over its damages.
Auto insurance: Life without a car seems impossible. Those who already have a car must be having an auto insurance but if not then get it right away. For those purchasing a car for the first time, should apply for its insurance. Safe driving on one side cannot avoid accidents and mishaps. A car, whether it is a small or big, inexpensive or very expensive might suffer great damages due to accidents. Insurance help covers its repair costs. It also involves liability coverage that is handling the legal responsibility of the other party who suffers bodily harm or property damage. Medical coverage is another advantage of having auto insurance. It covers the medication for treating injuries to the funeral expenses of the victim, the insurance bearer.
It is important to live life without any worries about future circumstances. Insurance helps keep the worries aside.