Do I Need Insurance and Why Do I Need It?

Do I Need Insurance and Why Do I Need It?

Accidents can happen and when they do, it’s always best to be prepared. You’ve worked hard to pay for the things in your life such as your home and your car; why not take the extra step to insure your valuables are protected?

Simply put, insurance is a way of managing risk and protecting yourself in the case of a sudden accident. When you purchase insurance, you transfer the cost of any potential loss to an insurance company for a fee called a “premium,” which is securely invested by the insurance company. That way, if you do need to make a claim your insurer will pay out for the loss that’s covered by the policy you purchased.

Today, you can insure almost anything in your life. For example, homeowners will purchase insurance for their homes to protect against potential break-ins or damage caused by natural events like flooding. Most drivers will purchase vehicle insurance; in the case of an accident, paying the repairs in full is incredibly costly and avoidable with insurance. Even your health can be insured. Anyone in good health can contract an unexpected illness or injury that could require a visit to the emergency room, forcing you to pay out of pocket which could cost thousands of dollars.

No matter how careful you may be, accidents can happen and choosing to forgo insurance can put your life and belongings at risk. There are a lot of different policies that cover almost anything imaginable, so the challenge is identifying what types of insurance you may need.

One of the most important types of insurance you should consider is health insurance. Staying in good health ensures you can work and provide for your family, and also allows you to enjoy life to the fullest. The last thing you want is to find yourself in debted to a hospital because of an emergency visit or unexpected surgery. Luckily, most employers offer health insurance benefits to full-time employees, but if your employer does not offer health insurance you can find affordable health care coverage from a third party.

Another important and serious type of insurance to consider is life insurance. This particular policy is crucial if you have a family or a partner, as an unexpected death can leave loved ones in financial trouble. Life insurance policies should cover basic funeral expenses and provide a financial cushion for your family, alleviating some of the stress associated with such an unfortunate event. Check with your employer to see if they offer a life insurance policy; if not, there are hundreds of providers who can provide the appropriate coverage for you.

If you own a vehicle, you may look into purchasing auto insurance. Most states require drivers to purchase basic auto insurance before they can drive a car, and this type of protection covers the replacement of expensive assets. Cars can be pricey; not only do you need to put money into the upkeep and maintenance, but repairs can cost a pretty penny at the body shop. Most automotive insurance policies can also cover legal defense costs, in an unexpected accident like a crash with another vehicle.

Insurance policies do more than cover damaged goods; they provide peace of mind and protection for you and your loved ones in a worst-case scenario. And while it may be an additional cost in your monthly budget, it’s much better to be insured today than to pay for an accident in full later on. Ask your employer about any employee benefits and insurance plans they may offer, and consider investing in a sound health and life insurance policy. Shop around for other insurance policies that cover a wide range of items, and look for a rate that fits your current financial situation. At RLI, we offer a number of insurance plans that cover your belongings, including home, auto and jewelry insurance, at a price that is affordable to you. As careful as we all try to be, there are some things that are completely out of our control and it is better to be insured than to find yourself paying for the damage in full. If you are considering an insurance plan that covers your personal belongings or just need short-term insurance for activities like track days, we encourage you to reach out to one of our agents to learn more about a plan that is right for you.