Why is Insurance Necessary?

There’s something in the human psyche that makes us think something truly bad can’t happen to us. House fires, theft, automobile accidents or even disease are things that happen to someone else. The truth is, it happens to more people than we realize:

Statistics
· Nearly 4,000 Americans die every year from house fires (U.S. Fire Administration)

· More than 16,000 people are injured in house fires (U.S. Fire Administration)

· Property loss from house fires averages $15.5 billion each year (U.S. Fire Administration)

· A motor vehicle is stolen in the U.S. every 33 seconds (FBI)

· Nearly 2 million Americans die each year from some type of disease (CDC)

Insurance can’t prevent situations like these from happening. What it does is protect you and your loved ones when tragedy does strike. Most homeowners have homeowners insurance, because it’s required by your financial institution, and anyone who owns a car is required to have auto insurance. Here are some other types of insurance to consider.

Renters insurance pay to replace your belongings if your rental home or apartment is destroyed or broken into. If you rent and do not have renters insurance, get it – especially for an apartment. One small fire in one apartment can destroy an entire complex and leave you with nothing. Renter insurance protects you.

GAP insurance is another type of car insurance for people still paying on an auto loan. If something happens and your car is declared a total loss, but the value of the vehicle isn’t worth as much as you owe on the loan, GAP pays the rest of the loan and usually gives you at least $1,000 toward the purchase of another vehicle. Without GAP, you’re stuck paying on a car you no longer can drive.

Life insurance helps your loved ones survive financially when you die. This type of insurance is very important but is often overlooked. If you die tomorrow, how will your spouse or children continue paying the mortgage and the rest of bills? Will your children be cared for financially? They will if you buy life insurance.

Many people think insurance is a waste of money, because you only need it if something happens. Unfortunately, good things sometimes happen to bad people. Insurance doesn’t cost that much. Cover yourself before it’s too late.