Why Buy Life or Health Insurance?
Insurance policies are in the business of preserving your assets. In a lot of cases you get insurance to help you repair or replace a particularly expensive item, should it get damaged. Cars, boats and houses are classic examples of insurance policies taken out purely to cover potential future costs of repairing or replacing these items. It makes you wonder then why do people buy insurance to cover some other things that we don’t necessarily think of as expensive.
Life insurance is a great example of this. Your life was given to you for free. You didn’t pay a dime to be born. No fees were paid to allow you to grow a year older every birthday. Although you pay money to maintain life—i.e. buying food, clothes and shelter— there were never any expenses permitting you to grow up. Why then are people buying it? For the same reasons, why do people buy health insurance if you never paid a bill to be healthy?
Your life is an asset. Your health is an asset. Your very existence tells of future potential. Your body and mind has the ability to go to work every day. They have the potential of earning you and your family a paycheck to get you through your days. Should either your life be taken away from you, your family could lose the asset of your work, leaving them penniless and in need. Purchasing good life and health insurance helps you either keep paying the bills, or get you back to full health quickly by getting you the medical care you need to recover.
So even though you didn’t purchase your life or your health, it is still worth a lot to a few people. Having the right insurance will help you pay for unplanned, expensive bills that will come from accidents.