Why is insurance important? Choose two types of insurance and discuss their
characteristics.
Insurance is important because it ensures people and families. That is the reason protection is
particularly significant once you start a family. The importance of insurance in a lifetime process
is developing. Insurance is protection and giving a financial safety that assists you with dealing
with yourself and those you love when you want it most. BT, (n.d).
1. Health insurance
This type of insurance is intended to cover medical expenses incurred when a person requests
medical attention or has been admitted to the hospital. There are different options in health
insurance. Depending on your pocket and what you might need to be covered, you can choose
one that covers the doctor’s expenses only which is probably consultation and medication only.
(Siegal & Yacht, 2009).
2. Auto Insurance
Normally covers personal injury and property damage (Siegal & Yacht, 2009). In the case of
bodily injury, the insurance covers the costs of medical care, that is, whether the person was
likely involved in an accident.
References:
BT, (n.d). Why Insurance is Important – Benefits for you and your family. Retrieved from
https://www.bt.com.au/personal/insurance/learn/understanding-insurance/why-insurance-is-
important.html
Siegal, R. &Yacht, C. (2009). Personal Finance. SaylorFoundation. Licensed under Creative
Commons CC BY-NC-SA 3.0
characteristics.
Insurance is important because it ensures people and families. That is the reason protection is
particularly significant once you start a family. The importance of insurance in a lifetime process
is developing. Insurance is protection and giving a financial safety that assists you with dealing
with yourself and those you love when you want it most. BT, (n.d).
1. Health insurance
This type of insurance is intended to cover medical expenses incurred when a person requests
medical attention or has been admitted to the hospital. There are different options in health
insurance. Depending on your pocket and what you might need to be covered, you can choose
one that covers the doctor’s expenses only which is probably consultation and medication only.
(Siegal & Yacht, 2009).
2. Auto Insurance
Normally covers personal injury and property damage (Siegal & Yacht, 2009). In the case of
bodily injury, the insurance covers the costs of medical care, that is, whether the person was
likely involved in an accident.
References:
BT, (n.d). Why Insurance is Important – Benefits for you and your family. Retrieved from
https://www.bt.com.au/personal/insurance/learn/understanding-insurance/why-insurance-is-
important.html
Siegal, R. &Yacht, C. (2009). Personal Finance. SaylorFoundation. Licensed under Creative
Commons CC BY-NC-SA 3.0
