When you hear the word insurance, the words boring and mundane probably enter your mind.
I realize that insurance is not a fun topic to discuss or think about, yet it is important and serves to protect your financial future. It is comforting to think that nothing will ever happen to you and that you are invincible. But odds are that you are likely to get into a car accident or have some type of health problem at some point in your life, and when that happens, you will want to have insurance. So when you question whether you need insurance, the answer is a resounding yes, you definitely need insurance.It may seem like insurance is a waste of resources- spending money on something that may or may not happen. Since you cannot predict the future, it is important to protect yourself and your possessions against damage and harm. Insurance is all about protection- it protects you against an unfortunate incident such as a car accident, a robbery, or an illness. The moment an unexpected ill-fated event happens, you will be so glad you have insurance. Medical bills from a minor accident can deplete your savings and force you into bankruptcy. Insurance is not a rip off, but rather an essential financial service.
I recognize, however, that insurance can be tedious, stressful, and mind boggling-- trying to figure out what you need, what you don't need, and how much you need. Basically, there are four areas that most people are concerned about insuring: their life, their health, their possessions, and their finances. When deciding on what type of insurance you need, you must first ask yourself some basic questions. What is most valuable to you? Your health? Your car? Your material possessions? If you die what would the financial result be? Are you supporting any dependents such as a child or other family member? Most of you probably do not support dependents, so life insurance is not necessary. What type of health are you in? Would you be able to support yourself if you became sick or disabled? For most people, the answer is no, so you probably need to buy disability insurance. What would happen if you got sick? Can you afford to go to the doctor without health insurance? Health insurance is something you simply must have. Most employers offer health insurance to employees at reasonable rates, so definitely choose a health insurance plan that your employer offers.
Source: http://www.princetonreview.com/college/finance/articles/smart/impinsurance.asp
