Have you ever heard the quote “Life comes at you fast?” Unfortunately, that statement can be shockingly accurate for all the wrong reasons. From a sudden accident to a natural disaster. It may sound unlikely, but you just never know.
That’s why you should not hesitate to set up an insurance policy just in case.
Insurance is a contract between two parties where one party agrees to compensate the other in certain situations, such as illness to property damage.
There are multiple forms of insurance including:
• Health insurance for medical expenses.
• Life insurance for your family.
• Auto insurance for your vehicles.
• Home insurance for your property.
• Business insurance for liability and operational risks.
Each form of insurance plays its part. By not having insurance there can be significant risks and consequences including:
Financial Woes
This is the main reason people get insured. If you are involved in a car accident, you could be facing a heavy bill depending on the extent of the damage. Without insurance, you would have to cover the full cost, which many people can’t afford to do potentially leading to issues like debt.
Reduced Financial Opportunities
From a business standpoint, not having insurance can be a bad look which can make it harder to secure contracts or attract clients. It will be harder to secure loans or mortgages if financial institutions see that you are uninsured.
Harder to Secure Future Coverage
It can also be difficult to secure future coverage as insurance providers review your history and past claims when making decisions. Don’t wait until after an incident to seek coverage; it could result in higher fees.
Legal Troubles
If you are involved in an accident, you might not only have to pay for damages. If you also have to face a lawsuit the costs can quickly stack up. Liability insurance covers legal fees and protects your assets from lawsuits and claims.
Certain types of insurance, like auto insurance, are mandatory by law in many areas. If you want to drive, you need to be insured. By not having this in place, you could face issues from fines to legal action.
Uncertainty
You can see insurance as a safety net for you, your family and your assets. If anything were to happen to you, you could rest easy knowing your family is financially secure.
Imagine facing a sudden medical issue without insurance. If you can’t afford the medical bills, you may end up in financial trouble or neglect the issue, leading to more complications. It is an anxiety that you can very easily do without.
If you have questions about insurance or your existing coverage, it is in your best interest to consult a legal professional to guide you through the process.
At Lawhaven Law Firm, we provide consulting services in all aspects of insurance law. Get your first consultation free!