Life is the most precious thing to a person. After all, "one's ability to earn money highly depends on one's physical and mental health. Insurance is an important financial tool. No one knows what the future looks like...It is unpredictable. Therefore, people buy insurance to stay safe from various 'future' financial insecurities/risks.

In Today's Edition:

1. What is Insurance?

2. Reasons Why People Don't Buy Life Insurance

3. Understanding the Importance of Being Insured

What is Insurance?

Insurance is a contract represented by a policy in which the policyholder receives financial protection against economic losses from an insurance firm.

Simply put, it is a policy to protect oneself from financial risks and losses(either big or small).

Is there a need to Get Insured?

Insurance is considered an asset since it allows you to file a claim and obtain a successful payout if you encounter a certain risk that is mentioned in your insurance plan.

It is a way to manage risks. Human beings lack the power to witness the future. Not a single person can determine when an unpredictable financial loss could occur...

Insurance is a way to prepare yourself for the unexpected risks you might encounter in the future.

For example, if a person is not insured and an unexpected mishap happens, that person might need cash immediately. If the person's financial situation is poor, it may upset his overall financial planning and cause him to suffer economically for some time. However, if he owned insurance, he could have filed a claim and earned successful compensation. This would not have impacted his financial planning.

Yes...You Need to Be Insured!

You are Your Most Important Asset

Many people believe that purchasing insurance is unnecessary and consequently neglects the necessity of being insured. One needs to be protected from the unexpected financial risks lurking in the future.

You must look after the most important asset you have. And that is 'YOU'. To enjoy your hard-earned money, you need to be certain that your future is protected from unexpected financial risks/losses. Understand the fact that you are the most important asset in your life and must protect yourself.

Age has a Significant Impact on Insurance Premiums

A young, healthy person would pay less in insurance premiums than someone between the ages of 35 and 40.

Being young, you qualify for lower premium rates. That is why it is suggested to start early.

And, as you get older, you can develop health problems that would make the insurance more expensive or even disqualify you from purchasing a plan. After all, missing out on getting insured at an early stage in life could have a significant impact on one's financial life.

The more you wait to buy Life Insurance, you run the risk of deteriorating health.

Another important insurance is Health Insurance.

Life Insurance is a policy where upon the death of the insured person, the company gives a sum of money.

But, Health Insurance is where the insurance company pays the medical expenses of the insured person when certain situations arise.

Health should be a number-one priority for every individual and hence it is everyone's responsibility to make sure that they are not financially at risk when a medical situation arises.

According to a study conducted in the US, High Medical Bills are the number 1 reason people cannot save enough for retirement or even go bankrupt. Hence, it is important to have health insurance and to be safe from any unexpected medical situations that may arise.

Why Health Insurance Might Be More Important Than You Think — www.coveredca.com

Health insurance isn’t just a good idea, for Californians, it’s the law. Find out the top benefits of having health insurance and why you need it.

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Until Next Time…