Eliminating Debt by Having Insurance

The only thing that is certain about the future is its uncertainty. To quote another adage, we need to hope for the best but plan for the worst. Surprisingly, many people do not listen to this and end up falling deep into debt because of a lack of insurance.

Insurance is a safety net against debt, but strangely a lot of people do not look at it that way. They see insurance as something that you get in case of accident, without really understanding the point of it. If you are in a car accident, especially if it is your fault, you could end up paying thousands in repairs and possibly hundreds of thousands in a lawsuit. If you are injured and can no longer work, medical bills alone will bankrupt you and result in you falling deeply into debt. If you die, your family may go into debt in an attempt to pay off the debts you incurred in your life and if you get sick, medical bills can mount and increase your overall debt load as well.

If you have $20,000 saved up to protect yourself from debt, then good on you for doing that. However, if you have $20,000 saved up and no insurance of any kind, then you are just inviting disaster to your carefully saved money. One of the most common quotes from people without insurance is "It will never happen to me" Well the truth is that it can happen to anyone, anytime.

Great Final Expense Insurance?

To better care about the well being of your family, you need to do something about your final expenses once you die. The way you do this is through final expense insurance.

Insurance such as this that takes care of your final expenses is permanent insurance, which means there are no terms that you have to worry about. You do not have to commit to a term of 10 to 20 years and then have to pay a higher premium if you want to be covered for a longer period. This is for a fixed period, which is the rest of your life, and has a fixed premium.

The Ideal Insurance Should Have

There are certain items that make up a high quality life insurance policy. When you are looking for a way to take care of final expenses in addition to any existing policies that you may have, you want something that is affordable. For instance, you do not want a policy that is going to be higher in cost just because you are higher in age. You want to be between the ages of 55 and 80 and be guaranteed coverage.

Guaranteed coverage means that you will not be turned down for coverage, even if you are 80 years old. This can be a rare find because many life insurance companies require health exams or they have an age cut off. For those who do not have any life insurance or they don not have enough, this would place them in a very difficult situation if there were not policies available to them later in life. Actually, this would place the family in the difficult situation because the family would be the ones burdened with the expenses.

Insurance Explanations

What exactly is the benefit of having so many types of insurance? Sure, some insurances are mandatory to have in some states, but what is it about all of it? Why do we really "need" insurance?

Let's take a quick look at them one by one.

First off let's talk about homeowners insurance. Purchasing a home is a large investment. Not only the structure of the home, but all the contents inside. If something would happen to your home and everything in it because of a fire or flood, would you be covered? Your home is the largest asset you will probably ever own. It is important to make sure you are protected in case something happens to your home or anything that is inside.

Auto insurance is required on today's roads and for good reason. This goes for any vehicle that has to pass a safety/emissions test. While most people want to save as much money on car insurance as possible, it is important to remember that you need adequate coverage also. The best way to get the lowest rate is to keep a clean driving record. Don't skimp on auto insurance - this is probably the area of insurance that you need the most.

Life insurance can cost a pretty penny and is something people really don't want to think about. Try thinking about what it is your loved ones would do financially without you. Would your death be a financial burden? Would everything still be able to be paid for after you're gone? Life insurance provides financial security that your family will need during one of life's most difficult times. This is an important type of insurance to consider.

You work hard to keep your business up and running and perhaps it's time to think about business insurance. If your business is your livelihood, then you need to protect it from problems that can arise. It is wise to at least look into what business insurance can do for you.

No matter the type of insurance, it all has its place and is all important. Be sure to talk to someone about your specific situation and an expert in the insurance field can lead you to what is best for your needs.