Why You Should Buy Insurance

By: Harrine E. Freeman

According to the website for Cover the Insured website, one of the highest age groups that are uninsured is made up of men and women in the 21- to 44-year-old bracket. According to the Chicago Tribune, 70 million Americans are underinsured. Sixty-one point nine percent (61.9%) of full-time workers are uninsured. According to the Employee Benefit Research Institute, health care costs have increased steadily since the 1960's at a rate of a 10% increase per year.

A study by Harvard University researchers found that 50% of all bankruptcy filings were partially the result of medical expenses. Many people go into debt and have bad credit due to unpaid medical bills. If an unexpected event occurs that causes you to lose your job or become ill you could end up homeless. You should have some type of insurance no matter what your salary. Here are 3 benefits to having insurance:

1. Insurance can be used to reimburse for a loss that occurs

2. Insurance protects against harm to something or someone

3. Insurance saves you money in the future

There are several types of insurance available: life, health, dental, home, auto, fire, flood, credit card insurance, disability (short term and long term), and many more. The basic types of insurance everyone should have are: health, life and disability. All three actually work together. Health insurance is needed if you develop a health condition or need to go to the emergency room. Disability insurance is used if you have a short-term or long-term medical condition that prevents you from working and ensures that you still continue to receive a paycheck, usually at least 60% of your salary. Life insurance is used in the event a family member dies.

When buying insurance it is best to comparison shop. You can contact the Better Business Bureau or search their website for companies and view their reliability report. If your employer does not provide health, life or disability insurance you can purchase insurance on your own. Go to eHealthInsurance to get quotes on affordable health insurance.

If you need health insurance for your children visit the Insure Kids Now site. For information on disability insurance, visit Assurity company's website. If you cannot afford to purchase insurance, make sure you get enough rest, eat well and exercise. Try to get a part-time job to pay for insurance costs.

If you are able to purchase additional types of insurance such as home owner's insurance, auto or fire insurance, it is best to purchase bundled packages or several insurance policies with the same company, such as insuring multiple cars with the same insurance company.

Many companies give you a discount if you purchase multiple products, but you have to ask for it. Purchasing bundled packages or multi-line policies can result in a savings of 1% to 20% depending on the company, versus buying home owner's insurance with one company and auto insurance with another company. You can comparison shop online with companies such Bankrate or Progressive. You may not see the immediate benefit of buying insurance now, but in the long run you will be glad you did.

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