Insurance is a necessary part of life and in a few cases required by law. From the most basic auto liability to buying our first home, we are constantly grappling with buying insurance and wondering if we are buying the right insurance, at the right price, from a reputable company.
It can be overwhelming for some people and if you don’t have a good resource to discern a good decision from a bad one, you can end up making a costly mistake. Examples of this abound such as the recent hurricane Katrina that has resulted in several lawsuits as insurance companies claimed flooding was not covered, even though many of the homes where blown off their foundations well before the surge of water came on land.
Thus, it is important to do your homework and make sure the insurance you are considering covers all the possible problems you may encounter. Some auto insurance does not cover hail damage automatically. These sort of things must be investigated prior to signing on the dotted and line and paying for the insurance.
Life insurance is always a hard decision, after all you only need it when you are no longer alive. It is purchased for those you leave behind, and that is a sobering thought. But you should do your research, most people really only need basic term insurance. Purchasing whole life insurance that builds a savings fund is usually money better spent on another investment. But, for some people it makes sense.