If we are being honest nobody really likes to talk about insurance.  Think about it, insurance is usually something that comes up when you see your third cousin at family events and that is only because he is an insurance salesman.

Even more true is that much of the insurance that we buy is mandated by the government – be it car insurance, mortgage insurance, or even health insurance.  Ok, well the last one might not be government mandated anymore, but you need to have it unless you want to go broke paying your medical bills.

When you boil it down, most people think of insurance as an expense and one that should be kept to a minimum if possible. There is good reason of this as your car insurance premiums can be downright expensive depending on where you live, what type of car you drive, and importantly, your driving record.

But there is another side to insurance and it is one which is often overlooked by financial planners and lay people alike – risk management.  That’s right, having an insurance policy is all about managing your risks and for this reason, we will go over some of the reasons why you need insurance even when you think you don’t.

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Empty Nest

Maybe your kids have flown the coup, or maybe you never had any.  Either way, the lack of dependents shouldn’t be used as an excuse to not have insurance.  For starters that is because the lack of family support means that you need another outlet to protect you from a sudden loss of income.

This makes sense, after all no longer live in a world of guaranteed employment and pensions.  Instead, today’s job market is one of short-term gigs (usually several at one time) and a self-managed retirement account – that is if you are lucky enough to make enough to be able to save for retirement.

As such, you need to think of insurance options to hold you over when times are tough.  These could include long-term care insurance, workmen’s compensation, and even unemployment insurance.  Even if you are self-employed, these are policies that you need to have in place as they will backstop you against potential loss.

Another form of coverage that you need to think about its life insurance.  That’s right, even if you don’t have any dependents, life insurance can be very handy.  For starters, the right policy can be used as collateral for a loan and you might even be able to sell the policy later in life if need to cash it out.

In addition, it can help you to cover the costs of your funeral – which can be more $20,000 or more depending on where you live or will be buried.  However, not every life insurance policy will cover funeral expenses directly.  As such, you need to check the fine print of your policy and check out information on the company and their customer service levels.

Assume that you are about to get a new car insurance policy and you want to check out the company.  Thanks to the internet, you can go online to see how others view the carrier you are considering.  For example, you can check out Mercury reviews to find out how Mercury Insurance Group is rated.

Not only will this help you to find the best coverage at the best price, but it will also help you to find a carrier whose service will fit your needs.  In this way, insurance becomes more than just a black hole that you throw money into every month but rather an investment in your future.

Insurance in Retirement

Many people think that they don’t really need additional insurance when they are retired.  After all, they are living on a fixed income and maybe are concerned about the additional expense.  While this makes sense, it is also shortsighted.  The reason is that we are living longer, more active lives and as such, we need to have alternative stores of value for when the nest egg runs out.

This is where insurance can help, either by investing in annuities or making sure your life insurance policy is tuned to the realities of being retired.  Another reason is that life insurance can be a great way to ensure survivor benefits – especially if you don’t have a pension to rely on.

Stay-at-Home Parent

You are one of the few remaining single income households.  While the economic realities of life in America means that this is no longer the norm but it doesn’t need to be that way.  Sure, having a second income can be a big boost but even if you are making ends meet on one income, you should still think about insurance.

Why is that?  For starters, there is no such thing as lifetime employment.  As such, having a policy that covers you and your family separate from the coverage your spouse gets from work.  In this way, you are utilizing insurance as a hedge when things go awry.

So, just because you are a stay-at-home parent, you should consider getting coverage.  If not, then you might find yourself out in the cold when you need it most.