Why Is Insurance Important?

About a year or so ago, a major consumer protection magazine reviewed books
about personal finance written by the well-known gurus on the subject. The
magazine found that the subject of insurance was hardly covered at all.
If you think about it, this is a strange failure on the authors? parts.
Without insurance the best laid financial plans can disappear in a moment of
inattention or a puff of smoke. All you saved and invested can be gone in
seconds.
Insurance is here to make sure an accident does not destroy you. It protects
against fire, flood, theft and collision.
It will defend you if you injure someone in an accident.
It will allow your surviving family to carry on for a time without the
income you produce and it will even replace that income if you become
disabled.
Many people don?t believe that a disaster will befall them. Or they want to
spend the money on something that?s more fun.
But as expensive as insurance may seem, and certain policies, like
disability insurance can be quite costly, it is substantially cheaper than
the alternative.
If you home burns down and you lose it and its contents, the premium you pay
now will seem like peanuts.
If you run someone over with your car and cause them serious injuries, the
cost of your legal defense alone is many times what you pay for the policy.
Insurance is the difference between picking yourself up and carrying on
after a disaster or facing bankruptcy and financial ruin.
In my opinion every wage earner should have term life and a disability
income replacement policy.
If you own a home or rent, you need homeowners or renters insurance.
If you have a car, auto insurance is mandatory in most states ? and don?t
think the legal minimums required by most states will protect you in a
serious accident.
Finally you need good health insurance coverage, preferably backed up by a
high limit major medical policy.
Prepare for life?s risks so you don?t become one of its victims
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will surely be remembered for Good.
Regards,
About the Writer
By qualification the writer is a B.tech(CSE), MBA(Finance), CFA, CFP, NCFM
(All modules), AMFI (advisors) and expert Technical and Fundamental Analyst.
The writer of this article(technicals.exp…@gmail.com) is a technical
expert and the purpose of whom is to educate the investors/traders/students
with the expert stock market terminologies and knowledge so as to equip them
with the right arms to battle in the stock market or  their career.
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