Life is filled with risks. There are times when things don’t go as planned despite our best efforts to minimize the risks and assume that everything will be alright or at least manageable. And this assumption can lead to costly mistakes and even worse consequences.
We live in an unsure world. Most people will take out a home loan at some point in their lives. No matter how much you haggle or bargain you think you’re getting, every home loan comes with one big catch: if you miss just one payment, the bank can take your flat away. This won’t happen to you a lot, but there are going to be moments in life when you find that your income falls short of your expenses. Your car breaks down. Your refrigerator quits working… and you’re stuck with a giant credit card bill that you’ve racked up month after month, probably without even realizing it.
However, there are still ways to avoid these situations and one is through—insurance. Whether you might want to call it a misfortune or not, having insurance is something that a lot of people could use nowadays. You’re able to take advantage of it whenever you need protection for yourself and your loved ones.
Let’s face it: a lot of things can happen to anyone out there in the world. These include accidents, natural disasters, illnesses and even death. Insurance provides coverage against the financial loss resulting from some unforeseen event or situation. The most naturally-occurring risk we face in our day-to-day lives relates to the health of our loved ones. Most people go without any protection measures against such a financial blow, which is why we so strongly feel the need for being protected with this type of insurance.
Maybe you are thinking that you’re financially well now and having insurance isn’t necessary or one insurance is more than enough. But what if your spouse loses their job? Or what if your employer decides to stop offering health coverage? What would you do then? Maybe you have home insurance, but what if a disaster like a fire or flood damages your home? And what if your personal possessions are damaged along with your home? Would this mean replacing all of your furniture, clothing and electronics — not to mention the family photos that hold such sentimental value? Are you going to get yourself enough security just when you need it the most and it’s already late? Life is full of surprises, but protecting yourself against those surprises will prevent you from committing desperate acts, or getting devastated.
Unfortunately, for some of us, the only time we figure out what to do is when something happens to us or with our family. It’s through the rough times that you realize what really matters. The biggest lesson we learn from this is to always be prepared for the worst times.