The purpose of insurance is to pay for losses that you could not cover from your income and savings. This generally means having homeowner s or renter s insurance to cover loss due to fire, flood, wind or accidents caused by you or a family member. Auto insurance must protect you against potentially large expenses due to you causing injury to others or damage to their vehicles. Life and disability insurance provide income if a breadwinner dies or suffers a disability and cannot provide needed income. Although you may find you are rarely sick, a major illness can lead to hundreds of thousands of dollars in medical bills.
Health insurance is important to cover unexpected, large medical bills.
More next week. For more information, contact your local Colorado State University Cooperative Extension office . Go to top of this page. Contact Cooperative Extension Web Manager . Cooperative Extension programs are available to all without discrimination.