Karoline L

Why is Insurance Important to Me? Insurance protects me from the unknowns in life and can prevent a financial hardship. Everyone needs insurance, but not everyone has it or has enough. There are many types of insurance to protect me, all of which are important and serve different purposes. Some common examples of insurance are home, auto and life insurance. I will discuss how each of these protect me and my family.

Home insurance protects me and my family from disasters such as a fire or tornado.  Should our house be destroyed by a fire or tornado, the home and our possessions will be covered if we have the right amount of insurance on our home. There will be money to rebuild our home and money to replace our possessions.  Many policies even provide coverage for living expenses while our house being rebuilt. Another coverage on a home policy that is not often thought about is the medical coverage. Medical coverage will cover the  medical expenses incurred if someone were to get hurt on our property.  I heard of an instance where this was very important recently.  This local family was outside and their five year old little boy was playing with his best friend.  They decided to go into the shed and get out the small axe and start chopping wood in the back yard.  The little boys took turns swinging the axe and chopping wood.  The homeowners’ boy was taking  his turn swinging and as he swung to chop the wood his friend reached in to grab the piece of wood. The axe landed on his friends little fingers. Both families were obviously distraught.  The friends family had health insurance that covered most of the medical bills. Fortunately, the homeowners had decent medical coverage that will cover most or all of the copayments and deductibles incurred by the family. Insurance has prevented an already tough situation from becoming worse by providing financial stability.

Auto insurance protects me and  my family in the event of an accident if we have proper coverage. Should we cause an accident, be hit by someone with little or no insurance or encounter an animal on the road, we can have our car repaired. If I cause an accident it is important for me to have the proper coverages to cover the other drivers expenses.  If I do not have enough coverage, I risk being sued for the amount not covered. It is a law for every driver to carry auto insurance.  However, that does not keep people from driving even if they do not have insurance or not enough insurance. As a result, we have coverage for uninsured and underinsured drivers on our policy.  This will cover my family for medical bills and car repairs if someone with little or no insurance hits us.  Last year one of our friends was involved in a head on collision. She was seriously hurt and spent several days in the hospital and her car was totaled.  The individual who hit our friend did not have adequate insurance.  Fortunately our friends had good coverage, so once the individuals insurance was exhausted, the underinsured coverage on our friends policy covered the additional medical bills.

Life insurance protects me and  my family should one of us die. My parents have life insurance on themselves as well as life insurance on my sister and  I. The life insurance on my parents is enough to pay off all of our loans and provide money to support us in the future.  The death benefit will be available to pay for future living expenses and help pay for our college. The policies on my sister and I have two important features besides the death benefit.  One feature is they will be paid up policies after twenty years that will be in force the rest of our lives.  The other feature is the guaranteed insurance option.  This option will allow my sister and I to purchase additional life insurance as adults without having to apply and be approved for additional life insurance.  This is important in the event we should become uninsurable due to an illness or disease.

I learned firsthand about the importance of life insurance after my uncle was killed in an accident several years ago. He was in his twenties, married and had two young children. He had just joined the iron workers union and was just getting his life and career established.  He did  not have any life insurance purchased outside of his employer or the union. The union only provided a $10,000 life insurance policy. This death benefit was used almost entirely to pay for his funeral, leaving little left to cover any of their existing bills and loans.  My aunt did not have a career or significant job other than working  part time.  In order to cover some of the expenses some people in the community organized a fundraiser help cover bills and put money aside for the my cousins college fund. My aunt had to apply for social security for herself and  the kids to survive.  My parents helped her budget and get back on  her feet. Often times my cousins were staying with us so she could work and go back to school and get her degree. There were many struggles and lots of stress due to the lack of life insurance on my uncle. Fortunately my aunt had a family that was willing and could help.  If my uncle had the proper amount of  life insurance his family would not have had to rely on  the community and family as much as they had to.  There would have been stress, but it would have eliminated the calls from collectors and many sleepless nights from my aunt!

These are a few examples of why insurance is important to me and  my family. Insurance can protect us from life’s unknowns and unexpected disasters. Make sure the insurance you have provides the coverage you need!

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