My uncle was one person who always thought insurance was nothing but just another tax for adults. That was until his laptop broke down, and his car rear was knocked down by another car while he was driving home. It was funny how he narrated his story. Although waiting in the ER room in the same year had drained his bank account, his family stood by his side.
You see, insurance, according to my dad, is not anything to be excited about. Explained by him, it doesn't come with many surprises, but according to him, it is like a superhero that comes to save you in times of difficulties, just like my uncle.
Why Insurance Is Non-Negotiable Even When You Are Careful
According to my dad, insurance exists for three reasons, he said.
- Insurance exists because the future is not predictable
- Because emergencies are really expensive
- And because being careful has never stopped accidents.
You should probably be thinking of insurance as a financial seatbelt that comes to your rescue in a difficult time.
The Types of Insurance Every Adult Should Have
1. Health Insurance
If you are wondering why health insurance, according to my dad, it is very important because medical bills are sometimes not affordable. For adults, according to my dad, insurance is not an option. It is just like a survival gear.
What Health Insurance Covers
- It covers doctor visits and the hospital where the individual stays
- Medicines that will be prescribed for the person
- Care, checkup, screening, and vaccines.
My dad had personally avoided the doctor for months because he wanted money, but then, the issue with him cost him three times more than the actual cost.
2. Auto Insurance
Though Auto Insurance is required by law, common sense also. If you drive, even occasionally, auto insurance is there to protect you from lawsuits and protect you from repair bills. And as far as I know, it is required legally by most states and countries.
The core coverage types of Auto Insurance?
- It covers the damage and the injuries you cause
- Covers your car after accidents or collisions
3. Homeowners and Renters Insurance
The reason why homeowners must insure their home is because of fire, theft, burst pipes, or even a guest slipping on the floor in your home.
Homeowners insurance covers:
- The structure of your home
- Your personal belongings
- Your liability protection
4. Life Insurance
If someone relies on your income, then know that life insurance is not an option but rather an obligation (say, a responsibility).
Term life and Whole life insurance as exists are the common types of life insurance. Life insurance also covers your funeral expenses, mortgage or rent, your debts, and education costs that you incur.
5. Disability Insurance
According to my dad, statistically, a person is more likely to become temporarily disabled than kick the bucket during their working years. Yet, most people insure their phones more than their income. Disability insurance plays the role of covering a part of your income if your illness prevents you from working.
6. Long-Term Care Insurance
Long-term care, such as assisted living, nursing homes, and in-home care insurance matters because it is expensive and is rarely covered by standard health insurance.
If buying long-term insurance, you must buy it earlier as premiums rise with age.
7. Umbrella Insurance
For umbrella insurance, what does it do? Well, umbrella insurance exists to provide extra liability coverage beyond your home and auto polices. It is very useful if
- You own a property
- You have savings or investments
- You coach youth sports
- And you exist on the internet.
According to my dad, umbrella insurance is surprisingly affordable and protects a person against lawsuits that exceed standard limits.
8. Travel Insurance
Travel Insurance is necessary because your vacations do not have to end in bankruptcy. Travel insurance matters because travel mishaps happen(cancelled flights, lost luggage, etc.)
Travel Insurance is especially important for international travel. A reason is that your domestic or home insurance may not follow you.
The Little I Have to Say
Having insurance does not mean you should be afraid. It also shows that you are preparing for the unforeseen. Every insurance policy has a different role it plays, but when put together, they create a safety net that lets you live without having to worry constantly about scenarios that may be worse.
As put by the Insurance Information Institute, having insurance doesn't mean you are eliminating risks, but rather, transferring them.
What I Finally Have to Say
Insurance may not look nice, but neither is financial panic. The right coverage allows you to take risks, build a future, and, moreover, sleep better at night without crossing your fingers in case life becomes unpredictable.
Therefore, if you still see or think insurance is just another waste of money, you may as well be thinking wrong. It is not anyone's prayer for the unforeseen to happen to you, but then, in situations when your responsibility becomes so much and unbearable, you would need insurance to lift some of the weights from your shoulders.
If you are still thinking of waiting for the next month or year to have insurance, knowing well you can start now, then wait no longer. Find a good insurance company and join them today, and your future will surely thank you later.
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