Insurance And Your Financial Future

Insurance And Your Financial Future

Consumers are slowly understanding the importance of insurance coverage. Although it adds another bill to the monthly budget, insurance for critical assets, from homes to cars, gives you financial peace of mind. If that item is damaged or destroyed, you know that you have a company behind you to cover the replacement monetarily. For example, find insurance agency in Austin TX to help your whole family’s needs and protect your life savings.

Car Repairs

Car Accidents

If you are in a car accident, car insurance protects your savings from the high cost of medical and vehicle repair bills. For example, an accident that is your fault forces you to pay for the injured party’s medical bills. If this amount was out of your own pocket, you could easily go bankrupt. Car insurance pays for all of the party’s medical costs, along with damage to the cars. Before you get out on the road, look over your insurance policy to ensure that you have all the coverage you need in the event of a severe car accident.

Fire Outbreak

Your home may have been damaged from an electrical or brush fire. Although the structure was not an entire loss, a large section must be repaired. Paying for a huge fire restoration project can cost thousands of dollars, effectively wiping out your savings account. Homeowner’s insurance is your protection. When damage occurs, you make a claim on the policy. An inspector will come out to survey the damage.

You should receive a check for a determined amount. The insurance is essentially giving you enough money to hire contractors for restoration. However, you need to verify what kind of damage is covered. For many policies, floods and earthquakes are not covered.

Family Death

Whether you have one or two incomes supporting the family, the death of either person is devastating, both mentally and financially. Aside from the grief of loss, you have lost that income forever. Life insurance pays you a set amount in the event of that person’s death. Although there are limitations, this policy is relatively straightforward. The death of a covered person activates the claim, sending a check to the beneficiary. Although money does not curb the grief, it helps you pay the bills in the meantime.

Examine your insurance needs today. If you feel that there is not enough coverage, contact your local insurance agent. They can walk you through many solutions.

Written by Miranda Marquit

Miranda Marquit is a freelance writer and professional blogger, specializing in personal finance, small business, and investing topics. She writes for a number of financial web sites and blogs, and has been featured in numerous media. Read about life as a freelancer at MirandaMarquit.com and in her book Confessions of a Professional Blogger.

2 Responses to Insurance And Your Financial Future

  1. For the most part I think insurance is a scam. It adds a monthly burden to your budget (which robs your wealth) and often times doesn’t pay out. Auto and homeowner’s insurance are probably the two best and most important types of insurance to have. Although, read the fine print because they don’t always pay out when you would expect them to.

    These are the rules I live by when it comes to insurance and/or extended warranties:

    – If you can self insure, don’t pay for insurance (example: don’t buy life insurance if you have enough saved to get your family by in the event of your death).
    – If you can’t afford to replace electronics (like your iPhone), you probably shouldn’t be buying it in the first place!
    – Don’t let fear drive your decision to purchase insurance. Make a rational decision based on the facts of your life and current financial situation.

    That’s just my opinion, for what it’s worth!
    Ree

    • I like the idea of carefully considering whether or not you need insurance, and self-insuring if you can. And, of course, you should never make decisions based on fear! Thanks for sharing your thoughts.

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