5 Reasons Why Insurance Should Be a Part of Your Financial Plan
14 Jun 2020
US insurers wrote a total of $1.22 trillion in net premiums in 2018.
This insurance provides a range of different kinds of cover for individuals, households, and businesses. Even if you never make a claim, insurance is essential to preserve your peace of mind in many scenarios.
Read on as we look at the five main reasons why insurance should be a part of your financial plan.
1. Protection of Your Business
There are various kinds of insurance you can get to protect your business interests.
Premises insurance, which protects your business property from occurrences like fire and theft, is one important example.
Another important type of business cover is workers’ compensation insurance.
If one of your employees falls ill or sustains an injury due to their activities at work, you may be legally obliged to compensate them for medical costs and lost wages. Workers’ comp insurance will cover these expenses.
2. Legal Necessity
There are a number of situations in which you will be legally required to take out an insurance policy.
One prominent example is that of flood insurance. If you wish to take out a mortgage on a house that’s situated in a high-risk flooding area, and that mortgage is secured by the federal government, you’ll be required to get flood insurance.
Another example is motor insurance. If you drive a vehicle of any kind in 48 of America’s 50 states, you’re legally required to have insurance on it.
3. Providing for Your Family
Nobody likes to think about what will happen if they get injured, suffer a serious illness, or even pass away. Unfortunately, however, these are all real possibilities. If one of these should come to pass, your family may be left with huge expenses to cover.
To this end, you should always have sufficient cover in terms of health insurance and life assurance.
4. Keeping Your Home Protected
There are many things in life you can do without. A home is not one of them.
Unfortunately, there are many threats out there that could do away with the place you call home. A huge number of houses are destroyed by natural disasters every year, while many more are burned down in fires.
You also have to consider the contents of your home. If burglars were to break in and steal all of your valuable possessions, the cost of replacing them would likely be many thousands of dollars.
Luckily, these are risks that insurance can cover, at least financially.
5. Ensuring a Source of Income
There are a number of things that can get between you and your income. You can’t insure all of these risks, but you can insure some of them.
Health insurance policies cover lost wages. Life assurance policies also provide for your family financially in the event of your death.
Why Insurance Is Necessary for Everyone
No matter who you are, you’ll almost certainly have to take out an insurance premium of some kind at some point in your life. Whether it’s your car, your house, your business, or even your life that you need to insure, it’s the only way to make sure that an unexpected disaster doesn’t leave you or your loved ones in financial trouble.
If you’d like to learn more about why insurance is a good idea for you, or you have a question about the services we provide, contact us today.