For better or worse, insurance is a big part of modern life. If you have something that you can’t afford to be without, then it makes sense to insure it! If it feels like you don’t have enough money for this insurance, then you need to do a little bit of soul-searching to find out where in your budget you can figure out how to add it in. There is really no price on being stress-free, and especially if you need something as part of your livelihood, you should build in the cost of insurance as a part of its overall price.
A few examples of insurance basics that you need to have a working knowledge of include car insurance, life insurance, homeowner’s insurance, and health insurance. Each of these will cost different amounts of money at different points in your life, but they are all important for different reasons.
If you’re going to drive, you have to get car insurance. People who don’t have car insurance who end up getting in some sort of accident can end up in a whole lot of financial trouble quickly. In addition, if your car accident totals your car and then you don’t have transportation, and you don’t have enough money to buy a new car, that presents a whole different set of situations! Even if you have to buy a less expensive car in order to afford the insurance, that is really the responsible way to go.
Though life insurance may not seem as important to younger people, as you get older, it makes more sense. Especially if you have a family, it’s important to sign up for life insurance to make sure that they are taken care of even in the event of some sort of catastrophic accident. Again, if you earmark that money so that you don’t have the anxiety associated with not knowing the future, then it is money well spent.
If you own a home, then homeowner’s insurance is something else that you should consider. If you have a lot of expensive items in your home, or your home itself is worth a lot of money, then having homeowners insurance may be the difference between carrying on with your standard life, and having to declare bankruptcy. Again, depending on where and how you live, the amount and type of your insurance could be different, but the idea is to purchase the best plan that you can afford, that will make sure that you don’t take a huge hit on your standard of living in case something bad happens.
The hot topic that everyone seems to be talking about these days is health insurance. If you’re healthy, do you need health insurance? If there are penalties for not getting insurance, should you pay for them? If you have an insurance plan at work, will it stay that way in the coming years? The more that you educate yourself about the varying types of health insurance, the better decisions that you’re going to make for yourself under different personal and professional circumstances.