Why Do I Need Insurance?
Insurance is a way of managing risks. When you buy insurance, you transfer the cost of a potential loss to the insurance company in exchange for a fee, known as the premium. Insurance companies invest the funds securely, so it can grow, and pay out when there’s a claim.
Insurance helps you:
- Own a home, because mortgage lenders need to know your home is protected
- Drive vehicles, because few people could afford the repairs, health care costs and legal expenses associated with collisions and injuries without coverage
- Maintain your current standard of living if you become disabled or have a critical illness
- Cover health care costs like hospital and doctor bills, prescription drugs, dental care, vision care and other health-related items
- Provide for your family in the event of a death
- Run a small business or family farm by managing the risks of ownership
- Take vacations without worrying about flight cancellations or other potential issues
Disclaimer: The above description provides a brief overview of the terms and phrases used within the insurance industry. These definitions are not applicable in all states or for all insurance and financial products. This is not an insurance contract. Other terms, conditions and exclusions apply. Please read your official policy for full details about coverages. These definitions do not alter or modify the terms of any insurance contract. If there is any conflict between these definitions and the provisions of the applicable insurance policy, the terms of the policy control.