Insurance and Why You Need It

Insurance and Why You Need It
  • Opening Intro -

    If you own a car you need insurance. If you own a house you need insurance.

    If you have health problems, you need insurance.


In some cases, insurance is required, particularly if you buy a car and have it financed. Your lender will require insurance and you will be the one to pay for it.

Insurance is available to cover just about anything. Companies such as Lloyds of London offer insurance on nearly every risk other there, although most of us limit our coverage to certain assets and other criteria. If you have not given much thought to the “why do I need insurance?” question, the following will help you find some answers.

Personal Contentment

Insurance can give you peace of mind as it covers the potential loss of something near and dear to you. Without insurance, you are always at risk of total loss, what can be protected by purchasing the right policy.

Tangible Item Security

Imagine losing or having stolen from you a tangible item of great value. Not only have you lost the benefit of that item, but it may not be replaceable. At least not without insurance. The right amount of coverage can protect your valuables including artwork, jewelry, a coin collection, antiques and the like.

Financial Safeguard

There are different types of insurance that offer financial safeguards in the event that you die, are injured or otherwise cannot live your life as you usually do. Breadwinners typically buy life insurance to ensure that their survivors are covered if they die. Some states require employers to supply disability insurance, to protect employees should they get hurt. Permanent disability insurance kicks in if you can no longer work. These types of insurance provide income protection as well as peace of mind.

Style of Living

Another consideration for choosing insurance is to preserve your style of living. Any loss sustained can change the way you live, sometimes dramatically so. With the right coverage for your home, car, health, dental, life and other needs, you can continue with your life even as other things may have changed.

Insurance Considerations

It is important for consumers to shop around for insurance to find the right policy for their needs. Know that your rate will depend on several factors including the deductible that you choose. With a deductible you are assuming some of the potential loss, demonstrating to the insurer that you have a financial stake in the asset.

See AlsoAffordable Dental Insurance is Easier Than You Think


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Categories: Insurance

About Author

Matthew C. Keegan

Matt Keegan is a freelance writer and editor as well as publisher of "Matt's Musings", his personal blog. Matt covers campus, consumer, business and financial topics on various websites and blogs, and has been published in the "Houston Chronicle", "Sam's Club Magazine" and "Wisconsin Golfer".