Insurance is a necessity of life. Insurance companies help protect people and their properties from unforeseen financial losses, including income losses due to illness or injury as well as property damage and fire.
A lot is covered by insurance, but there are some types of insurance that are required in order to be taken advantage of.
Here are some of the things people need insurance for:
Vehicles are a necessity of life in this day and age. These days, there’s no getting around the fact that you need a vehicle in order to commute to and from work (if you have a job), school, or anywhere else for that matter. So it goes without saying that if you drive, it is imperative to have vehicle insurance because your own auto insurance policy will protect you from any financial losses that might occur should your vehicle be stolen, be involved in an accident, or both.
Pet insurance is also something that many people need in order to make sure that their furry companions are taken care of should the worst happen. Your pets are your family members, and it’s best for you to protect them from all possible risks.
In those families where more than one member is eligible for an insurance policy, it is important for each one of them to have a policy in order to avoid an increase in premiums should someone else be taking advantage of their benefits.
Life Insurance is also considered a necessity of life. If you have a life insurance policy, then you will have financial security that your loved ones will be provided for if you should die and they are the beneficiaries of your plan. Plus, you can ensure that your wishes regarding who receives what will be honored, even after you’re gone.
Healthcare is another thing that many people need and are required to have insurance for. It’s because there are so many costs that go along with it. For example, deductibles and co-pays are not getting any cheaper, so if you get sick or injured and end up going to the hospital, you will want to be sure that your hospital stays will be paid for. Health insurance is one of the things people need a lot of.
What do you not need insurance for?
While it’s important to have insurance for many things, some kinds of insurance are highly overrated. The following are some of the things that you might not need insurance for:
Your cell phone
Cell phone insurance can be a waste of money. The reason you have insurance is to recover financially in case something goes wrong due to an accident. But cell phones are not very fragile. After all, they are electronic devices and they’re exposed to moisture and heat on a regular basis. Plus, anyone can fairly easily replace cell phones these days.
Your credit cards
Credit card insurance is a big no-no because it is one of the most useless kinds of insurance there is since it only protects your credit cards in case theft or loss occurs. Losing a credit card can actually cause you to have financial troubles if you don’t have the budget to pay it off immediately. So it’s best not to get credit card insurance in order to manage your own budget more efficiently.
Your retirement account
Another overrated kind of insurance is retirement account protection. Sure, you want to protect your hard-earned cash after all the hours that you’ve spent contributing money. But, remember, if you lose the money or damage it in any way, the government will pay for it anyway. It’s because your funds are insured by federal deposit insurance laws. Therefore, do not opt for something when the government had this thing covered anyway.
While this can be controversial, homeowner’s insurance can be a waste of money when it comes to protecting your personal property. Although your home is indeed something you might value – in fact, it’s probably even more than the belongings that you consider most important – there are other ways to protect your property without having to spend money on a big-ticket policy. For instance, if you add up all the things that you could lose because of fire, theft or burglary, it would be safe to say that home insurance is overrated.
Travel insurance is something which will cover any additional costs associated with traveling. For example, most travel insurance policies will cover the cost and expenses associated with stolen luggage or damaged items inside said luggage.
But travel insurance is one of the most overrated things people buy insurance for. Travel insurance is overrated because it costs money. If you’re traveling via a visa, you’ll have to pay for travel insurance. If you’re traveling via a tourist visa or by yourself, you’ll have to pay for travel insurance. This can be quite pricey and make your trip more expensive than it needs to be. And even then, the promise of covering everything may not be as great as the actual value of said coverage. For example, if your luggage gets stolen while traveling in the United States, odds are good they will not reimburse you for the stolen belongings inside it.
Is having no insurance at all a good option?
It is never a good idea to have no insurance at all. You never know when something life-changing will happen. And having a proper insurance policy in place will ensure that you are taken care of should the worst happen.
But you should be able to distinguish what it is that you really need; and what’s not as important to you. For instance, if you realize that home insurance is something that you don’t really need, it would be wise to save money on that particular policy and put it toward something more important to your situation.
For example, if you have a big family and there are many people in your household who are eligible for the same insurance policy, then saving money on home insurance could pay for the entire amount of one life insurance policy. This will make sure that your family will be able to take care of itself financially should something happen to the breadwinner of the family.
Of course, there are many scenarios that could cause you to have no insurance at all. For instance, you might get a job in a profession where you can’t get insurance – if that’s the case, it might be best for you to decide whether or not you want to be part of the work force without insurance.
It is also possible that your country has special laws regarding healthcare costs and access to care that make having insurance simply not an option. Or the government might take away your insurance because they say it’s not necessary. In this case, it may be best for you not to have health insurance at all given these circumstances.
In overall, you need to make sure that you always look at the big picture when determining whether or not you will want to purchase a specific kind of insurance, even if it’s a necessity. This will help you decide whether or not having insurance is really something that you really need.
Please note that this article is not any kind of financial advice. It is important to always check with your insurance carrier before deciding whether or not it’s a good idea to make a change to your current coverage. Also consider always reading the fine print of your policies and confirm that the information you are given is accurate!