that's normal blog financial resilience

Safeguarding Your Tomorrow

The insurance introduction

Part 12 | Reading Time: 5 minutes
By Ian Bin
Hey there, have you ever had a moment where life takes an entirely unexpected turn? Well, that’s where insurance comes in. It’s like having a safety net for life’s curveballs, and it’s a big deal. So, why should you care about insurance? Let’s chat about it.

What is insurance?

vacation travel
Insurance is an agreement you make with a company. You agree to pay them a bit of money monthly. And then, in return, they promise to have your back when life does something crazy. If something unexpected happens, like a car crash, a health scare, or a home disaster, they will swoop in to help you financially.

Why's it so important?

Alright, here’s the scoop on the main points on why insurance is your trusty sidekick in the game of life:
Peace of mind
Life can be unpredictable. Insurance gives you peace of mind, leading to a more stress-free life, knowing you won’t be left with nothing if things don’t go your way. You can work towards living your best life without worrying about everything that could go wrong.
Financial protection
Have you ever heard horror stories about people going broke because of a car accident or a huge medical bill? Insurance can help shield you from some of those nightmares. It can help cover your back, so you don’t have to drain your bank account for unexpected expenses.
Legal requirements
Some types of insurance, like auto insurance, are not just for your peace of mind – in fact, they’re the law! Driving without auto insurance in most states can land you in legal trouble with the authorities. For example, auto insurance is mandatory in most states to cover potential liabilities in accidents. Failure to have the required insurance can result in fines or losing your license.
Protecting loved ones
Providing financial security for your family if something happens to you and ensuring your family is cared for in the worst situations.

Important insurance reminders

It’s important to note that insurance isn’t an all-encompassing shield against life’s uncertainties. What’s covered and what is not varies depending on the insurance provider and your specific policy. While insurance offers valuable protection for many events, it won’t cover every situation you might encounter. So, it’s crucial to carefully review your policy and consult with your provider to understand your coverage’s extent and potential limitations.

In these different types of insurance below, I will also give an average price for a certain age to help you understand the cost, even though it will always vary for your current situation. 

The company you work for may offer different types of insurance, like health and dental, as benefits for working with the company. 

Different types of insurance

Health insurance
When you’re feeling under the weather or, heaven forbid, have a significant medical emergency, health insurance swoops in to help. Health insurance covers the cost of visits to see your primary physician, specialists, and other medical providers. It also can cover when you get health care services at a hospital, whether for emergencies, surgeries, outpatient care, procedures, or overnight stays.1
Cost example: The average monthly health insurance cost for a 30-year-old individual is $436.2
Vision insurance
This insurance can be helpful if you wear glasses or contacts and need regular eye exams. Vision insurance pays for some primary eye care, including eye exams, eyeglasses, and contact lenses.3 Vision insurance may not be worth the cost if you don’t wear eyeglasses or contact lenses and only require an occasional eye exam.

Cost example: The average monthly vision insurance for a 25 to 34-year-old is $17 monthly.4

Dental insurance
It can be helpful, especially if you’re diligent about your teeth, as it pays for a portion of regular checkups, cleanings, and essential dental work like fillings.3

Cost example: The typical premium amount for a dental plan may be $20–$50 per month for an individual regardless of age.5

Auto insurance
This one’s a no-brainer because it’s usually required by law. Almost every state requires a minimum amount to drive. This includes liability insurance, which pays for injuries or property damage you cause if you are at fault in an accident. Damage to your car is covered by optional coverage types called comprehensive coverage or collision.6

Cost example: On average, 25-year-olds pay about $2,019 per year or $168 monthly for whole coverage car insurance policies.7

Homeowner's insurance
You’ll want homeowners’ insurance when owning a house. These are like your home’s guardian angels. They protect your stuff from fire, theft, or other disasters, plus they’ve got your back if someone takes a tumble on your property and helps you pay for repairs and replacement if certain disasters damage your home. Even though homeowners’ insurance isn’t required by law, if you have a mortgage, your lender may require it.8

Cost example: Homeowners insurance nationally costs an average of about $152 monthly regardless of age.8

Renter's insurance
Most landlords require renters’ insurance or have it on your property. Renter insurance can help you replace the cost of personal items like clothes, furniture, and any electronics in the same cases where there are certain disasters like fire, vandalism, or theft. 

Cost example: Renters insurance costs about $12 monthly regardless of age.9

Life insurance
Life insurance ensures you’re financially secure for your family or close ones when you’re not around anymore. Life insurance may seem like a low priority in your 20s, but your immediate family may rely on your income. Your family might depend on those insurance payouts to survive if something happens to you. 

Cost example: Term life insurance costs $26 per month on average for a 30-year-old with a $500,000 coverage amount.10

Disability insurance
Think of this one as your paycheck protector. If you cannot work due to an illness or injury, disability insurance replaces your income. This can help pay for food, utilities, tuition, mortgage, or car payments. When you purchase disability insurance, the company you buy from is making a long-term commitment to you. If you become disabled, there is a chance you will receive benefits for an extended period.11 Buying from a company with experience, financial strength, and a solid reputation makes sense, so research.

Cost example: An income of $50,000 will cost, on average, $60 – $125 per month. Long-term disability insurance typically replaces 40% to 65% of your pre-tax earnings.12

Protecting what matters to you

So, there you have it – a casual chat about why insurance may be for you. It might seem like just another bill, but the safety net can keep you from going broke when life throws you a curveball. Don’t sweat the details; knowing you have different types of insurance in your corner can make day-to-day life much smoother. Cheers to peace of mind and a more secure future!


1 Kissell, Chris. “What Does Health Insurance Cover?”  Forbes, Forbes Magazine, 23 Aug. 2023,
2 Masterson, Les. “How Much Does Health Insurance Cost in 2023?” Forbes, Forbes Magazine, 23 Aug. 2023,
3 Hartill, Robin. “Why You Need Insurance.” NerdWallet, 25 Aug. 2023,
4 Glover, Lacie. “Vision Insurance: Costs, Benefits and Who Needs It.”  NerdWallet, 10 June 2022,
5 “How Much Is Dental Insurance.” Humana, Accessed 11 Sept. 2023.
6 “What Is Comprehensive Insurance vs. Collision Coverage | Allstate.”  Allstate, Accessed 11 Sept. 2023.
7 Leovic, Dillon. “Car Insurance Costs for 25-Year-Old Drivers – Valuepenguin.”  ValuePenguin, Accessed 11 Sept. 2023.
8 Schlichter, Sarah. “How Much Is Homeowners Insurance? Average September 2023 Rates.”  NerdWallet, Accessed 11 Sept. 2023.
9 Schlichter, Sarah. “How Much Is Renters Insurance? 2023 Rates.”  NerdWallet, Accessed 11 Sept. 2023.
10 Murbach, Katherine. “Life Insurance Rates – $500k Term Policies Start at $300/Yr.” Policygenius, Accessed 11 Sept. 2023.
11 Moser, Jessica. “Do I Really Need Disability Insurance?” MetLife, Accessed 11 Sept. 2023.
12 “How Much Does Disability Insurance Cost?” Life Happens, 5 Aug. 2020,

Recent Posts