Insurance is something everybody needs but nobody wants to use. Insurance protects us from both life’s unexpected problems and occurrences as well as events that we can foresee. If you were to sit down and pick the brain of a Texas insurance agent, these are some of the questions you might ask.
Why Do I Need Homeowners Insurance?
You need homeowners insurance to protect against substantial loss of your personal or real property and also to cover any claims that might be filed by someone that is injured while on your property. Damage or destruction from fire, flood or other causes can run into the tens of thousands and most people do not have the means to self-insure against that possibility. If you have a mortgage, the lender will insist that you have adequate coverage to protect their interests in the property.
Why Do I Need Automobile Insurance?
If you live in Texas and want to drive a vehicle, the law requires you to buy insurance. Insurance is required by every driver to protect other drivers and passenger in the event that you were the cause of an accident with injuries or property damage.
Is Life Insurance Really Necessary?
It depends on your personal situation. If you are single and do not have a family or any dependents, you probably do not need life insurance. The purpose of life insurance is not to protect the insured, but rather the named beneficiaries of the policy. If you have a wife and maybe a few young children, you would want to provide for them financially in the event of your demise.
How much Life Insurance Do I Need?
There is no set formula, but generally speaking, you should have about 10 times your annual income. If you make $50,000 per year, you should buy a half million dollar life insurance policy.