Insurance policies are a great way to protect your assets, family and yourself. The right insurance policies will protect financial interests, safeguard possessions and guarantee lifestyle stability. Here are four important events that require insurance to mitigate potential legal and financial consequences.

Medical Condition
Despite legislative efforts, medical costs are soaring out of control. Even if medical care is rarely needed, health insurance is a necessity because a quick visit to any doctor will result in a large bill. Serious injuries and long-term illnesses that require constant hospital visits will generate bills that reach up to $10,000. Certain surgical procedures will generate bills over this amount. Certain people often excuse themselves from insurance because they feel they are either young or healthy, but accidents and illnesses can occur at any time. The increasing cost of health insurance is a financial burden that people cannot live without.

Car Accident
Most states require drivers to maintain some level of automobile insurance. At minimum, almost all states require drivers to maintain insurance liability of bodily injury and property destruction. Even if the state doesn’t allow it and the driver has an old vehicle, car insurance is essential because if you are involved in an accident that injures someone or damages property, you may be liable for lawsuits. Car accidents can cause tragic injuries and damage, so a monthly insurance bill is much better than risking everything that you own.

Home Destruction
Repairing a home costs tens of thousands of dollars. A home is a lifelong investment, so having homeowners insurance will ensure that emergencies or natural disasters are less stressful and financially damaging. For example, certain regions are prone to hurricanes, tornadoes and earthquakes. Homeowner policies should reimburse the home’s contents and structure, but also provide a temporary cost of living for homeowners while they stay somewhere else during the repairs. Depending on the home’s age and the amenities, the cost to replace the home could either be less or more than the original price. Homeowner’s insurance policies should provide coverage for any injury liabilities that occur on the property.

Loss of Life
Life insurance tends to be associated with those who are elderly or unhealthy, but life insurance simply protects people from common risks. For example, if a parent or spouse unexpectedly passes away, dependents will face serious financial hardships without life insurance. Life insurance is also an excellent idea for those who work in dangerous industries, such as construction and law enforcement, and for those with chronic health conditions. In order to calculate the appropriate amount that is needed, consider your annual salary and the number of years left of work ahead.

In closing, businesses should maintain business insurance that covers against liabilities and catastrophic loss.