Insurance is an extremely important aspect of financial planning. While we all wish that nothing would ever go wrong in life, the possibility of a mishap is an unfortunate reality. Having insurance against a potential loss provides, both financial security and peace of mind. It's a good idea to insure for a risk that is less likely to occur, but if it does occur, it could lead to a significant loss. Examples of this type of risk would be an untimely death, destruction of the home you own, a serious medical situation etc.
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If the risk is significant and it is very likely to occur, the insurance cost may not be affordable. An example would be buying a life insurance policy on someone suffering with a life threatening illness. However, life is full of risks and you don't need to buy insurance for everything. For example, if a risk is relatively small and very likely to occur you may want to bear that risk. While protection from most risks require buying insurance, there is one risk that you can protect against by a little paper work. That risk is not having a will . Not having a will could potentially make your dependents go through a tedious probate process and your property may not get distributed as you would wish.
This section covers a number of topics. The topic of Insurance Types lists different types of insurance available for consumers to protect their financial stability. Life insurance page provides you a tool to assess your life insurance needs, and different types of life insurance products. Annuities offer some simple to very sophisticated ways for both savings as well as withdrawals. Health insurance topic is particularly helpful for those who buy health insurance on their own. If you are considering different ways of securing your health care during retirement, long term care offers some interesting capabilities. Social Security and Medicare are also covered here as they essentially offer some protection of income and health care during retirement. Homeowner's insurance, Auto insurance , Business insurance for those who own a business , and Umbrella policy together provide property and liability protection.
