By: Thomas Gillick
When creating a financial plan people usually focus on expenses versus how much income they are spending. A crucial piece within the budget which some people overlook is insurance and insurance policies. Insurance can protect against accidents, ailments and aid in dealing with the death of a loved one. Auto, homeowner’s, health, liability and life insurance are just a couple examples of insurances that might be necessary. Homeowner’s insurance protects your house from some damages and liability issues such as someone getting injured on your property. Homeowner insurance ranges from HO-1 to HO-8 all having different amount of coverage. Auto insurance protects you from car accident damages and incidental damages done to your car. Car insurance is mandatory in order to have a vehicle on the road. Auto insurance policies are very different and depend on the characteristics of the policyholder. Liability insurance is usually held by higher income families in order to have lawsuit and liability coverage. Life insurance helps protect loved ones after someone dies in the family. Life insurance can provide dependents to maintain their standard of living and protect against expensive medical bills. Health insurance is also very important usually provided by employers in a benefits package. Insurance is a key component in any financial plan as it is as costly as it is important.