By: Charlestien Harris
Insurance plays an important role in a sound financial plan and is a vital part of financial education. That’s why you should take a close look at your current policies during the month of September.
Insurance is defined as a practice or arrangement in which a company or government agency provides a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a premium. One of the main reasons you should ensure you have insurance is to protect what you value, such as your home, car, health, or business.
Here are at least three other reasons to make sure you have enough insurance coverage to meet your needs:
- Peace of Mind
Peace of mind doesn’t just come from having life insurance; it also comes from having enough life insurance. Insurance can minimize or eliminate financial stress, allowing you to live peacefully. Life insurance can offer peace of mind by ensuring that your debts will be paid and your loved ones will be financially taken care of in the event of your death. Before applying, consider how you’ll qualify and determine the right type of policy for your budget and needs. Insurance also helps protect you and your family against unexpected financial costs, resulting debts, or the risk of losing your assets. It shields you from expensive lawsuits, injuries and damages, death, and even total losses of your car or home.
- Financial Security
Insurance serves as a safety net to safeguard against unexpected events. Insurance policies provide the security of knowing that if something unexpected happens, you have a safety net to help cover any losses that may occur. When you purchase insurance, you acquire protection against unforeseen financial losses. The insurance company pays you or someone you choose if something adverse happens to you. Without insurance, if an accident occurs, you may be responsible for all related costs. Financial insurance, often purchased by businesses, provides coverage that protects them from losses due to a partner in a contract failing to meet their obligations, among other commercial financial losses.
- Encourage Saving
Insurance can help reduce long-term expenses, and it’s beneficial in safeguarding your finances. A savings insurance plan is a life insurance plan that allows the policyholder to save and invest money to financially secure themselves and their loved ones. Savings plans are financial products designed to promote planned savings while providing steady returns to support your financial goals. By compensating for the loss you suffer in an emergency, insurance policies provide financial security and allow you to save your income for other purposes. Knowing that the insurance policy will shoulder the loss in case of an emergency helps you plan your finances and accumulate a surplus for your goals. It ensures that the planned surplus is secure and not used in emergencies.
Insurance might be the last thing on your mind, and you might believe you have time to address this crucial matter. However, insurance is a vital risk mitigation tool that prepares you to face financial losses from unforeseen events, such as death or hospitalization. Time waits for no one, so don’t postpone reviewing your existing policies or considering additional coverage to meet you and your family’s needs.
For more information on this topic, you can email me at Charlestien.Harris@banksouthern.com or call me at 662-624-5776.
Until next week – stay financially fit!