Why Is Insurance Necessary for Financial Security?

            Families are stronger when they have sufficient insurance, and strong families strengthen communities and nations. I put together a chart showing the different types of insurance that are essential for the financial security of families. I hope that it is helpful for you to understand the importance of carrying adequate insurance.

 

       Insurance Type                Who Needs This?         When Do They Need It?

Homeowners Insurance	Anyone who purchases a home or has property to protect.	Before signing the loan when a home or property is purchased.
Renters Insurance	Anyone who rents an apartment, house, or storage unit and has items worth a lot of money. Sometimes when renting a car	At the beginning of the rental period and even while moving in and cancelled after moving out. Before driving the car.
Life Insurance	Anyone who has someone who is dependent on their income or labor, including breadwinner and stay-at-home spouse.	As soon as they have someone who is dependent on their income or labor.
Auto/Car Insurance	Anyone who owns a vehicle. Full coverage for newer cars and eliminate comprehensive and collision for older vehicles.	Insurance should be purchased as soon as a new or used vehicle is acquired.
Health Insurance	Anyone who is over 18 years of age and is not covered under their parents’ insurance.	At age 18 or when other coverage ends.
Disability Insurance	Anyone who depends on earned income or has someone dependent on their income.	When they start working and earning an income. Risk of disability higher than risk of death.
Long-term-care Insurance	Anyone who is concerned about long-term-care expenses.	While healthy and working or at time of retirement.