What insurance do you need?

Author:

InsuranceAdvice
Practically every household should have insurance to protect their most important assets. The type of insurance you have depends on your circumstances, the assets you own, and the number of people who are dependent on your income. Here\'s a handy guide to help you figure out what insurance you need:


Most people buy insurance to protect their assets – such as home, car, and items of value (contents) from fire, accident, thefts, etc. They might also need insurance if they\'re the only income earner in their family – if they\'re suddenly taken ill, are made redundant or have an accident, the family could suffer financially while they recover and get back into the workforce. Others have insurance to help a spouse pay off a mortgage or medical costs if they die.


You will probably need at least one or two of these types of insurance, but you don\'t need everything!


For every aspect of your life that can be covered by insurance, you need to ask yourself: What is the risk I\'m trying to insure against? (death, illness, fire), What would happen if the risk occurred? How much would it cost if the risk occurred? Could I afford for this risk to happen?


For most people, if their home burnt down in a fire, they could not afford to find a new home and furnish it without insurance. This risk of fire is relatively small, but if it does happen, it\'s nearly impossible for most people to recover from.


Likewise, if your family depends on your income to live, and you\'re suddenly unable to work because of redundancy, illness, accident, disability or death, they will struggle to survive, and might have to take out significant mortgage refinancing. Having some kind of life, health or income protection insurance will make everything easier if something happens.





But if your kids are grown up and have left home, you\'re probably not going to need life insurance any more, because you don\'t have so many people dependent on you, and your house probably has enough equity in it to keep your spouse financially stable.





When choosing insurance you should think about what\'s more likely to happen and what you can and can\'t afford to lose.
Article Source: http://www.articlesbase.com/insurance-articles/what-insurance-do-you-need-5389662.html
About the Author