How to Celebrate National Insurance Awareness Day

• As people’s lives change every year, their insurance policies may become outdated and not suit their needs.
• Therefore, June 28th was named “National Insurance Awareness Day,” so people had a gentle reminder to check their policies and ensure they matched their needs. 
• Some of the most common types of insurance that are offered people should have are listed below.

Smart money decisions early on will set the tone for your financial stability later on in life. Having insurance is a large part of financial security because it can protect you from unexpected events that can be costly in the future. To ensure people were updating their insurance policies regularly, June 28 was named “National Insurance Awareness Day.”

What is National Insurance Awareness Day?

National Insurance Awareness Day takes place on June 28th and this day serves as a reminder for people to review their insurance coverage each calendar year. As people’s lives change on a daily basis, these changes can cause their current insurance plans to be outdated. Consequently, this day was created so people would have a gentle reminder and review their insurance plans to ensure it aligns well with their lifestyle, so they are protected as best as possible. 

Different Types of Insurance to Have and Why

Health

There are many benefits of having health insurance. Firstly, there are many times in one’s life when one has to seek medical attention. However, due to the wholly privatized healthcare system, the costs accumulated are steep and difficult to pay off. 

However, many insurance plans offer coinsurance. Coinsurance is a deal made by the insurance company and the client. It discloses the percentage of the expenses that are to be paid by the company and the client. 

Therefore, the more expensive the premium, the amount of money spent, and the lower the percentage in the coinsurance. As a result, coinsurance may prevent one from experiencing financial hardships.
 

Auto

Car insurance is a common type of insurance utilized to protect the policyholder in the event of loss and liability.  The average monthly car insurance rate is about $139 or $1,674 annually, per Bank Rate. 

These coverages above can come with hefty bills if not properly insured. Having auto insurance is highly beneficial because the auto insurance company covers all of the expenses. Depending on the circumstance and type of policy that a policyholder has, some car insurance companies will supply a rental car until all of the repairs are completed.

Image Credit: ssguy / Shutterstock.com

Life

Life insurance is arguably the most important to have. Life insurance has a very low cost at an average price of $26 a month. However, depending on the different types of life insurance one is looking for, the rate differs. You can find a rate for yourself by using a life insurance calculator. 

The main pro of life insurance is that it is incredibly cheap. If an unfortunate death were to occur, the policyholder’s family would receive a lump sum of money to help cover expenses such as paying off the mortgage and help cover funeral expenses. Therefore, life insurance ensures that grieving families receive compensation to help them through this difficult period.
 

Home

Home insurance is essential and covers damages caused by external factors, such as fire, hurricanes, hail, lightning, and other disasters. The expenses covered are ones done to the structure of the home and personal belongings that were damaged during the incident. When an insured disaster makes the regular home inhabitable for the time being, any living expenses incurred during this time while the house is getting repaired will be covered.

The main benefit of having home insurance is that the expenses listed above will be covered with little to no money paid by the policyholder. In addition, homeowner’s insurance is pretty cheap as it is only $1,249 per year or roughly $104 per month. This low price makes home insurance one of the most beneficial as in the event of an unexpected incident, the steep expenses are covered and will relieve any stress a homeowner may have.

Business

When having a business, many hours of sweat, blood, and tears are required to help build the brand. Therefore, business owners should seek business insurance as there are instances people cannot control, such as natural events. By having insurance, business owners can lower their liability in case something out of their control happens, such as a natural disaster that damages their business’ operations. 

Image Credit: Shahril KHMD / Shutterstock.com

The Money Wrap-Up

In conclusion, though insurance may cost a decent amount of money per month, it is better to be safe than sorry. In the scenario, being safe means having insurance but not needing to make a claim, and being sorry means needing to make a claim but not having insurance to do so, leading to you having to pay for expenses out of pocket.

Main Image Credit: Rido / Shutterstock.com