What are the chances that your house burns down tomorrow? Slim, we hope. But homeowners still carry fire insurance because it would be financially crippling if it happened. Insurance is there to protect against those one-in-a-million awful events. Lots of people pay the insurance company a small amount of money in premiums (though it might not always feel small). Then, if someone’s house burns down or someone is injured in a car accident or any number of other unfortunate events occur, the insurance company can pay out a large sum to the victim.
Your insurance needs typically change with major life events and milestones—all those times when there may be new people or new things in your life that need protecting.
Landing your first job
|Welcome to the world of navigating your own health insurance plan.|
|Buying a car||You cannot legally drive without auto insurance.|
|Getting hitched||You now have the option of being added to your spouse’s health insurance or vice versa.|
|Purchasing a home||Congratulations! Now buy some home insurance. (Flood coverage is extra.)|
Each little bundle of joy needs to be added to your health insurance plan.