Insurance as practically a necessity to business activity

Getting the right insurance to cover an individual, their home, health, assets, business, family, etc, is an ongoing process that needs to be reviewed at different stages of your life. The importance of insurance in modern economies is unquestioned and has been recognized for centuries. Insurance is practically a necessity to business activity and enterprise. But insurance also serves a broad public interest far beyond its role in business affairs and its protection of a large part of the country's wealth. It is the essential means by which the disaster to an individual is shared by many, the disaster to a community is shared by other communities; great catastrophes are thereby lessened, and, may be, repaired.

There are some insurance policies that are of utmost importance. Living without them in modern times is a risk no one should dare take. The policies are:

• Auto Insurance: Every state requires car owners to have some sort of car insurance, especially liability insurance. If you get in an accident and it's your fault, the victims of your negligence can sue you and own everything you own. That doesn't mean everyone needs comprehensive auto insurance. For example, if you drive a clunker, you probably don't want collision insurance.

• Health insurance: should be viewed as a necessity for the vast majority of Americans, with the possible exception of those who receive Medicaid or Medicare. Only the richest of the rich can afford to pay out of pocket for medical expenses, which range from hundreds of dollars for routine doctor visits to thousands for more serious illnesses or broken bones. Premiums aren't cheap, but not having health insurance can cost middle-class Americans way more than they can afford, including their homes and their savings.

• Life Insurance: If you're single and you have no children, you can go without life insurance, but if anyone depends on you financially, you need life insurance. How much do you need? How much more money will you likely earn during the rest of your working years? Add that figure to what your funeral will cost, and that's the minimum amount of coverage you should buy. Life insurance is more affordable than ever, but the best rates are for the youngest and healthiest, and when you apply, expect to undergo a thorough physical examination, which include blood and urine tests.

• Property Insurance: If you own a house, or any other property, chances are it is your most valuable asset. Why wouldn't you want to protect it? If your property is not paid off, the bank or company that gave you a loan will require you to have insurance, but some people who pay off their mortgages make the mistake of dropping their coverage. You should buy as much insurance to allow you to replace the house if it was destroyed, and you also might want to buy a policy that covers the contents. If you don't own a house, you should buy contents coverage because your most valuable assets may be the contents of your apartments.