Insurance is extremely important as it provides you with financial safety in times when you and your family need it the most. Insurance is especially useful in times of emergencies such as death, accident, or disability of a family member; theft of valuable assets; destruction of property due to man-made or natural disasters; damage to automobiles; theft or damage to goods in your factory or storage facilities; and so on. There are several financial benefits to getting insurance. Listed below are some of the reasons why getting insurance is beneficial and necessary.

• Reduces financial burden during difficult times:  Losing a family member can be very difficult.

There are different types of insurance available that help provide financial security. They have been listed below:
Life insurance
Life insurance offers coverage over the insured person’s life. It comes with either a savings or an investment portion.

Health insurance
Health insurance offers coverage on medical expenses and hospitalization costs. In the country, Medicare and Medicaid are the health insurance services provided by the Federal government. Medicaid offers health care coverage for low-income individuals and individuals who are unable to work owing to age and disabilities or have single-parent families. Medicare is a health insurance program offered by the Federal government for citizens of and above 65 years of age, people with disabilities, and people with ESRD (End-Stage Renal Disease wherein patients need regular dialysis).

Term insurance
Term insurance offers coverage for a pre-determined period of time such as 10, 15, or 20 years. Since they are short-term insurance, they come with lower premiums when compared to life insurance.

Automobile insurance
In the country, many states require a mandatory minimum amount of insurance on automobiles. Automobile insurance offers coverage on damages to your vehicles in an accident or for a death by accident in a vehicle. They offer varying degrees of coverage. For instance, there are some insurance plans that cover only damages caused to the other vehicle in an accident you are involved, while others cover both damages caused to your vehicle and that of the other party’s involved in the accident. In the country, the cost of repairs for damaged vehicles is exorbitant, and thus it is important that you get an automobile insurance so that you don’t burn through your savings.

Homeowner’s insurance
A homeowner’s insurance offers coverage on the house and the belongings inside against damages caused by a fire, theft, vandalism, hail, lightning, windstorm, and so on. It also offers coverage on liability exposure when an accident occurs in your property. The accident may cause damage to property or injure any of your guests. Most homeowner’s insurance plans do not cover natural disasters such as floods and earthquakes. However, there are a few policies that provide additional options.