Answers: Insurance provides financial protection by keeping you from going bankrupt due to an unanticipated loss.
If your house burns down, and you don't have any hoard, you would be completely SOL without insurance to foot for replacing your house. That's financial protection. You could keep going as you be, rather than suddenly individual destitute.
It depends what type of insurance your talking nearly, but every one of them serves a purpose and ultimately provide financial protection.
Permanent Life insurance - In the event of a death, life span insurance will help to pay packet off your debts (credit cards, mortgage etc.) which will prevent forclosure or mortal forced to sell. Also the brass value that accumulate can be drawn out tax free, up to your cost reason, to supplement retirement or a financial hiccup that otherwise might bankrupt you.
Disability insurance - Probably the most impressive of all for financial protection. Considering 1 out of 3 populace will become disabled for some period of time during their working years. Which finances you're more likely to become disabled during your working years than you are of dying. Individual DI, depending upon the state, will wage you about 60% of your income tax free if you become disabled for an extended interval of time. The biggest cause of family losing their homes is not death of a manager of the household, but disability of one of them. Reason being the personage is still there, the costs of living remain roughly the same, however, their income is no longer contributing to the household.
Long residence care (LTC) - This is for the elder, but it protects their retirment money that they worked their whole lives to build up. The cost per state varies for nursing home and skilled home concern, but the average cost is around $80,000. Obviously, that could drain a families resources markedly quickly and walk out them counting on their kids or other relatives to support them. Medicaid will not help until the being is almost completely broke, meaning they cannot own a home, a coup¨¦ or have more than $2000 contained by assets, which could happen efficiently to someone that has not prepared for such an event near LTC.
I could go on, but i infer this has be long winded enough and illustartes my point