No one wants to be out of work. Unfortunately, the COVID-19 pandemic has had a devastating impact on the job market, driving up the unemployment rate to a new high of 14.7% in April 2020. Losing your job has a devastating effect on personal or family finances. Many Americans have little or no emergency savings, and without a regular paycheck, it can be hard to pay the bills. That’s why there is unemployment insurance.
What good is insurance if it doesn’t offer the protection you need? We all need insurance of one type or another. If you drive, you need auto insurance. Whether you own or rent your home, you should have homeowners or renters insurance to protect your assets. However, most insurance doesn’t cover everything.
Insurance can be a valuable part of your financial strategy. It can protect your wealth and ensure you have the coverage you need in case of disaster. But what specific types of insurance do you need to protect your assets? What if there is a disaster or family crisis? Will you have the right insurance to protect your assets? Will you have sufficient coverage?
Many people don’t understand why insurance is important. They just see insurance premiums as another monthly bill they have to pay without appreciating its value. Just as an emergency fund needs to be part of your financial success strategy, you need insurance to protect your assets in the event of a disaster. Insurance is important as part of your long-term financial strategy.
Insurance is one of those things you don’t want to think about but undoubtedly need. For example, if you own a car, you are required to carry auto insurance to protect yourself and others in the event of an accident. Mortgage lenders require homebuyers to carry homeowners insurance to protect their property and to cover visitors in case of an accident. However, many renters don’t see the need for renters insurance, especially because they don’t own the property. That’s a mistake.