Most people find it difficult to get insurance from any insurance company because they feel like it is an additional financial burden. Aside from their daily expenses, adding a fixed monthly insurance policy can be quite difficult to maintain. What some may not realize is that getting insurance can provide many benefits rather than just being another financial obligation. You are paying for a policy that can cover you for a certain period. This way, you can feel a sense of security as long as your coverage is still active.
Reasons Why People Do not Get Insurance
Not all people want to be insured. Statistics say that 41% of the American population does not have life insurance.
“It’s too costly.” Daily necessities and monthly bills are some of the usual fixed expenses of a household. Additional expenses can affect the budget. Some households could not afford insurance because they can be costly.
“I’m still young.” There is a misconception that insurance is intended for babies and old people. As a result, those who are able to work and afford having an insurance policy do not get it because they think they are still too healthy or too young to get one.
“I don’t have kids yet.” Another misconception is that insurance policies are for people who have families or those who have dependents such as children. Therefore, most single, working individuals tend to avoid prioritizing insurance coverage because they do not have kids yet.
“I’ll get it in the future.” Some individuals plan on availing some kind of insurance in the future; however, they forget to prioritize it. In the end, they allot their money for other things.
People need to be educated when it comes to getting an insurance policy. Whether it is life, car or health insurance, they should be made aware of the benefits of being insured.
Health Insurance
Health insurance is one of the most common types of insurance policies. It covers costs of the insured person’s medical and surgical expenses. It is useful because of:
- Preventive Care. Most insurance policies offer free preventive care such as general check ups, laboratory tests and other forms of diagnostics in order to know if your body is healthy. Preventive care also allows your doctor to determine whether you have health issues or if you are developing health risks.
- Covers Medical Expenses. During hospitalizations, your health insurance will cover your medical expenses up to the limit. Other insurance holders pay more premiums in order to increase their limit. The amount of the limit is determined by the policy.
- Protection and Security. Emergency cases or accidents are inevitable. They happen during the times when you do not expect them. Having health insurance can protect you from unexpected medical bills.
Having a health insurance plan is helpful because you can receive the medical treatment you need whenever you need it.
Car Insurance
Paying for a car insurance policy monthly may lead you to wonder why you continue to do so. Why did you get car insurance in the first place? These are the reasons why car insurance is extremely important:
- Financial Protection. Having a car insurance policy helps you get protection from financial liabilities and obligations in case you get into a car accident. It gives you financial protection and allows you to be able to pay any costs incurred during the accident.
- Coverage for Medical Costs. When you need medical attention, car insurance have policies where it covers any medical costs incurred when you get involved into an accident.
- Coverage for Other Related Costs. Related costs such as lawyer fees, litigation fees and cost of damages may be covered when you have car insurance. This way, you do not have to stress yourself out when it comes to your finances.
Car insurance helps pay for the costs associated whenever you get involved in an automobile accident. However, the more coverage you want, the higher the monthly premium.
Life Insurance
Life insurance covers and pays a certain amount of money following the death of the insured or after a certain period from the insured’s death. The usual recipients of life insurance are the living dependents, relatives or family members of the deceased insurance holder, or whoever is indicated in the policy.
Life insurance is ideal, especially if you fit the following situations:
- Sole Breadwinner. If there are people who rely on you for financial support, getting life insurance is recommendable. If you are the sole breadwinner, your dependents do not have someone to provide for them in the event of your death.
- Dependents. Life insurance gives you a form of security and a feeling of peace, especially when your children are still young. Depending on the form of insurance you choose, your children can receive monetary compensation or can continue their schooling through your life insurance.
- Minimize Risks. Life insurance is not an investment. It is a kind of risk management tool that lets you minimize the risks involved after your death.
A life insurance can help the loved ones you leave behind when you pass away. It is not a monetary value placed on your life. Instead, it is a form of compensation for the unavoidable financial costs incurred when you die.
Consider Getting One
Most insurance plans can be costly; however, getting one is recommended in order to prepare for the future. Do your research and check which kind of policy is best to fit your future needs.
Jessica is a professional health expert who works for some major health industry giants. She currently writes for Membersown and is dedicated to helping people learn more about health related topics along the journey. When she’s not a health advocate, she enjoys some down time traveling or talking with family.
