What is Life Insurance?
A life insurance policy is a contract with an insurance company. In exchange for premium payments, the insurance company provides a lump-sum payment, known as a death benefit, to beneficiaries upon the insured’s death. There are a number of different life insurance policies available, and are chosen based on the needs and goals of the policy holder.
Why do you need Life Insurance?
The general rule is that if someone else relies on your income to live, then you probably need life insurance. The idea behind life insurance is about taking care of loved ones if you are no longer able to take care of them. Life insurance provides financial stability for your loved ones, when they need it most.
What could go wrong?
You are driving home from work and swerve to avoid another vehicle. Your vehicle goes off the road down an embankment, and you die from injuries as a result of this accident. A life insurance policy would kick in and provide instant financial relief to your loved ones, and protect their financial wellbeing.
What is Health Insurance?
Health insurance is a type of insurance coverage that typically pays for medical, surgical, prescription drug, and sometimes dental expenses incurred by the policy holder.
Why do you need Health Insurance?
The United States has the most expensive healthcare system in the world. Health insurance provides financial protection in case you have a serious accident or illness, and helps keep the cost down on preventative services like doctor visits, shots and screening tests. Without health insurance, you are susceptible to significant financial burdens in the event of a serious injury or illness.
What could go wrong?
Let’s say you wake up in the middle of the night realizing something is seriously wrong and you need to go to the hospital. Come to find out, you have an appendicitis, and need emergency surgery. Health insurance would help to significantly reduce your medical bills turning a major financial burden into a much more manageable cost.