Do I Really Need Insurance?:

Do I Really Need Insurance?

So first off, how does insurance work? And why do I need it? Well, insurance companies pool your money and the money of other insured individuals together to create a large fund that can be pulled from when there is a qualified loss.

Your policy is a contract between you and your insurance company. You are paid out of the pool per the contract. In exchange for this, you are required to pay a premium. This premium may be paid monthly, quarterly, or annually.

Common Types of Insurance

So, what are some of the common types of insurance?

  • Auto: Provides coverage for auto accidents or damage to your vehicle in case of theft, collision, or break-in
  • Renters: Provides coverage for losses due to damage or destruction of your rental
  • Homeowners: Provides coverage for losses due to damage or destruction of your home
  • Health: Pays for medical treatment if you are injured or sick
  • Disability: Provides monthly income when one becomes disabled
  • Life: Provides coverage after death and is often paid to a family member

P.S. We know disability insurance doesn’t sound necessary for everyone but did you know that you’re more likely to file a disability insurance claim while you’re working than a life insurance claim? Why? Well, about 50% of adults 35 or younger will at some point be disabled for 90 days or longer.

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