Choosing which type of insurance game you want to play is going to be a bit of a major decision during the course of your life. What is the risk, and what is the reward? How many things will you have to insure before you actually get any money back in the event of occurrence? How does it all balance out?
So five topics that will come up during your insurance internal question-and-answer sessions are going to be home insurance, pet insurance, electronics insurance, life insurance, and the insurance that comes with proper investments and a stash of retirement money over the years.
Buying home insurance or renter’s insurance can alleviate a lot of stress that you might have about your home base. Theft, damage, accident, injury, and a number of other incidents can all give you a solid hit to the wallet and bank account if you’re not insured, at least against catastrophic circumstances. Each house or apartment will have a separate set of risk factors, and the choice of insurance company is going to make a difference as well.
If your pets are important members of your family, then pet insurance may be something to consider. Though a lot of costs with respect to your animals are going to be minor and expected, in particular, there are some genetic issues with some breeds of dogs that require expensive surgery to correct. If you’re lucky enough to buy the right type of insurance early on, you can potentially save yourself thousands of dollars if you run into this situation specifically.
How important are your electronic devices currently? Could you live without your cell phone if you dropped it in the toilet? Would you not be able to work if your computer hard drive toasted itself? Buying electronics insurance will often mean that you can replace these items no questions asked. The insurance itself is often expensive, but the alternative is buying something brand new, potentially in the thousands of dollars.
If you’ve got a spouse or kids that depend on you, then buying life insurance may be in the cards for you. Again, this is going to be one of those toss up situations where you have to decide if it would be better to put money away for them in a separate account and assume you won’t have to use life insurance or work with an official policy.
Investments and Retirement Money
Investments and retirement funds can be considered a kind of insurance as well. The more money you have in savings, the less you have to worry about making ends meet when you’re older. So although it isn’t a policy per se, the effects are largely the same.