In the United States, there are various insurance products, including health insurance, car insurance, life insurance, home insurance, and accident insurance, among others. Each type of insurance targets different risks and needs, which is why many people purchase multiple insurance policies to comprehensively cover various aspects of risk. Having insurance means not having to worry about facing high expenses in case of unexpected events.

Some insurances in the United States are mandated by law. For instance, car insurance is required for driving to ensure traffic safety and encourage people to purchase compliant coverage. Additionally, some states require employers to provide workers’ compensation insurance to safeguard employees’ rights.

Health insurance aims to provide coverage for medical expenses. Healthcare costs in the U.S. are high, and health insurance can reduce financial burdens for individuals and families when treating illnesses or accidents. With health insurance, people can access necessary medical services more easily, maintain their well-being, and prevent diseases.

Purchasing home insurance and property insurance is to shield properties from unexpected accidents. Home insurance can provide reasonable compensation in cases of fires, storms, or other unpredictable natural disasters.

Property insurance can also safeguard individuals and businesses from theft, damage, or other unexpected incidents.

Life insurance is intended to ensure the financial security of family members. If the policyholder passes away, the insurance company will pay out the death benefit to beneficiaries, helping them cover daily living expenses, mortgages, or children’s education fees. This financial support enables families to navigate difficult times after losing a loved one.

Buying certain insurance products can offer tax benefits. For example, beneficiaries of certain life insurance policies can receive death benefits tax-free, making insurance more appealing. Additionally, some insurance products in retirement planning can enjoy tax-deferred advantages, making insurance an advantageous component of financial planning.

Insurance also contributes to estate planning. By purchasing life insurance or other insurance products, policyholders can ensure that their properties and assets smoothly pass on to family members or beneficiaries after their passing. This helps avoid financial disputes among family members and ensures proper distribution of the estate.

For business owners, commercial insurance is essential to protect their companies from potential litigation risks or property losses.

Commercial insurance can provide liability insurance, property insurance, and employer liability insurance, among others, offering comprehensive protection for businesses and ensuring stable operations.

When obtaining mortgage loans, purchasing home insurance is typically required to ensure the property is protected. Banks and lending institutions mandate homebuyers to have home insurance, guaranteeing timely repairs or reconstruction of the property in unpredictable circumstances, thus safeguarding the loan’s security.