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Tuesday, June 16, 2009

Financial Security Through Insurance

By Ethan Kalvin

With money being the main stresses in everyone's lives, there are the concerns about what to forgo and living a frugal life. So some this means giving up extravagant vacations, meals out at restaurants, and shopping sprees. For others it means cutting back on grocery spending and maybe even the amount spent on their insurance premiums each month.

Wealthy individuals and impoverished individuals have a completely different mind set when it comes to health insurance during times of financial crisis. The Wealthy look at insurance as financial security for their future, where as the impoverished look towards it as a luxury and a month payment that is better going to food, clothing and shelter. The misconception by the impoverished individual become a costly mistake.

Insurance is not an added luxury in a persons life, it is a means of financial security and a stability factor that keeps them and their families safe. It is important to note that without insurance one could be leaving a large gap in their family's security for the future.

Many Americans who don't see the need for insurance consider themselves to have little or nothing. Realistically these are the people who need insurance the most. Insurance coverage like health insurance can cover many expenses that you may not foresee, and if you were to get ill and pass away, your estate and any assets you have could be designated to pay these bills leaving your family with nothing. Or consider if your home were to burn down. Everything you own would be gone. Could you afford to run out and replace every item in your home? Probably not, even the most economically furnished dwelling would be cheap to replace.

To summarize, insurance coverage, like life insurance, health insurance, car insurance, and homeowners or renters insurance policies are designed to protect all that you have accumulated including your family. Don't overlook the importance of this monthly expense. It would be better to eat Ramen noodles every night, than to cancel your insurance policy really.

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