While most people don't live life expecting the worst, it is a good idea to prepare for it. Having various types of insurances can help protect you and your loved ones financially should bad things happen. This is the primary purpose of insurance, to absorb any potential financial loss you may experience as a result of a specific occurrence of some sort.
Insurance is one of the few things in life you will purchase while actually hoping that you will never need it. For instance, you purchase life insurance knowing that you want your loved ones to be financially secure once you die. While everyone must die someday, no one wants to die prematurely. This can also be said of auto insurance or disability insurance. No one wants to become disabled and unable to work; however, it does happen, so having adequate protection is highly important.
While this section focuses on the most common types of insurance, keep in mind that there are other types of insurance available. Available insurance polices range from coverage for your boat to identity theft.