By: Li Bin Chen
First, insurance provides disaster protection. The last thing anyone needs is to see their income or life savings jeopardized as a result of a death of the head of the household, a major home fire, or an automobile accident that leads to legal action. Events like these are traumatic itself, without the additional financial devastation.
Second, insurance can gives you peace of mind. It let you know that if anything happens to you, your family will be financially secure. Your back up plan had been set in place. This way you can relax a little more while you are on vacation, knowing that if someone should break into your home and carry off your property, you are covered. There are certain things in life that we pay for even though we may never use them and insurance is just one of such thing.
The range and scope of insurance policies are expanding all the time. The coverage that is available right now were unheard of a decade or two ago. Today, many insurance policies are aggressively marketed. The insurance policies had even extended far into the retail sector, where extended warranties have become part of their operation. These warranties are just another form of insurance; incase any new appliance breaks down after the manufacturer’s guarantee expires, you are still protected.
But some people tend to be carry away with the insurance products and end up buying policies that they don’t really need. Before spending a penny, always ask yourself if I don’t buy this policy am I putting myself and my family at serious financial risk from a genuine and common danger?