Personal Finance Essentials
Insurance
Guard Against Financial Loss When
Life’s Unexpected Events Occur
No one can guarantee that you will never experience adversity. However, you can insulate yourself from incurring a financial loss should an unwelcome event occur. That’s the purpose of insurance.
No one likes to spend money on insurance – but when you need it, you’re glad you have it. And that’s the most important point about insurance: the best policies protect you from genuine financial loss – not merely annoyance at having to spend money paying for or replacing something.
Understanding Everyday Financial Risks
Key statistics across health, auto, and home insurance
For example, if your dishwasher broke, you’d be annoyed at having to spend money to repair or replace it. But if your car was destroyed, replacing it could be financially devastating.
So, ask yourself one question: if a loss occurred, could you afford it?
• If yes, you don’t need insurance for it.
• If no, then you do need protection.
The following types of insurance policies are important parts of any financial plan:
Quick Quiz
