Insurance is a contractual arrangement by which compensation is paid, or a replacement is given for loss due to certain unforseen, yet, not totally unexpected events, that are beyond the control of the insured.
There are many types of insurances. The most notable are life, health, dental, automobile and homeowners.
But almost anything can be insured if the premium can be paid by the individual or individuals seeking the coverage.
Insurance can be purchased for unforseen losses due to weather related issues such as rain and flooding, drought, wind and hail, fire, and earthquakes.
It can be purchased for short term health care, long term health care, accidental death or natural death.
There is mortgage insurance, residential insurance, title insurance, home protection insurance, and renter's insurance.
Insurances cover automobiles, boats, airplanes, farm equipment, business machines, produce, and inventories.
Is insurance necessary? Yes, it is. Without insurance to protect you from certain unforseen mishaps in life, such as accidents, health problems, natural disasters, and other issues, financial hardships are certain.
Take, for instance, a sudden death in the family. Funeral costs are expensive and without life insurance, unless you have money tucked away somewhere, you may find yourself grieving for the loss of a loved one while having to borrow money to pay for a decent burial.
If there is an automobile accident and severe damage is caused and you are at fault, without insurance, you may spend the next few years paying for vehicles you cannot operate. You may also lose your driving privileges or be held criminally liable.
Although it may be impossible to insure everything you own, you should consider buying insurance for the well being of loved ones and for items of value that would be hard to replace or rebuild.