Life is filled with uncertainties. Death, accidents and illnesses occur suddenly without any warning. Insurances provide a safety net for you. If you have people depending on you financially, then it becomes even more important to have insurance. There are about six types of insurances – life, health, property, business, auto and credit insurance. Depending on your need, you must select a few. Life and health insurance should be a must. Starting or having any business carries certain financial risks, so it best to have some insurance backing. Only having a bulky savings account is not enough. When the world comes crashing down on you demanding money, often your resources will get drained quickly and you will be reduced to taking loans or worse, you won’t have any money. It is best for you to think of insurance as a contingency plan.
Here are five reasons why you should have insurance:
- Safety Net: There is a reason the word accident exists. It refers to something unexpected. Often accidents are dangerous. With health insurance, your savings will be drained trying to pay for expensive prescription drugs, physical therapy or chiropractic care, that are not cover by the public health care system in all Provinces. Your savings accounts, which took years to amass, will be knocked empty in a few days. Similarly, environmentally the world is shaky with earthquakes, hurricanes and much more. Property insurance will always provide security to rebuild your house. If you ever bump your car or crash into anyone else’s car, your insurance will pay for the costs.
- Mortgaged Property: When a property owner dies, the property is taken over by the lender of the money, which is often the bank. In turn the owner’s family is deprived of shelter and a roof over their head. However, if the owner had insured the property, then at the time of the owner’s death, insurance would have provided the required amount to pay off the loans.
- Reduces Dependency: A family is dependent on the breadwinner to survive. If anything happens to the breadwinner, in terms of accidents or early death, the family may be in dire straits. With no financial backing, the remaining members find it difficult to support themselves. Children may not be able to complete their higher education. Acquiring insurance reduces all these worries. It guarantees financial security for the grieving family and for a secure future.
- Savings: Investing money on insurance could be a good way to save money. Insurance demands regular and systematic money inputs from you. Unlike a savings account, once you put the money in insurance, you can’t withdraw and spend it. When the time comes, you won’t have to pull out money from your saving accounts. Instead, your insurance will cover the expenditure, and all the money you invested in the insurance will come back.
- Old Age: When you’re old and just have plenty of time to spend, you will want a life insurance that kicks back money to you. If your company does not provide you pension, then you will definitely want insurance. You don’t want to be a burden to your children who are living their own lives. This way you can make sure that even though you are not earning, there is some money flowing in to cover your health needs and the holiday expenses you are having.
In life, there are so many worries and uncertainties. Acquiring insurance will ease your mind, assuring you of any financial backing when the time comes. We can never predict what will happen to us, but with the right insurance, we can be sure of that financial support to get us through tough times.
