Think of the “American Dream” and people are likely to envision a comfortable life, owning a home and driving the latest model car as part of that dream. Yet for millions of people who have lived here, without insurance for the above mentioned dream parts, life can easily become a nightmare. Even if due diligence is exercised with healthy eating habits and exercise, maintained the home, drove the car safely, and planned responsibly, situation can make it difficult to meet all obligations. Illness, divorce, or job loss can have a devastating impact that may cause anyone to miss payment or save for extra costs. Hence the message to all potential dreamers: it’s dangerous out there without the three basic insurances : health, home and vehicle.

Health/Medical Insurance

One of the biggest mistakes people make when it comes to health is not buying a medical insurance. No matter how certain they feel that they can take care of their own health with their own money, the body system may have other ideas. Sometimes there is a seasonal illness that will cure by itself. Other times, the treatment for the more serious epidemic disease is available only at the hospitals. The horrendous cost of medical care and prescription drugs coupled with the lack of an affordable treatment are the reasons to have a proper medical insurance policy. There are many resources available on the internet to find a good health insurance. Many sites provide comparative rates and many others offer information about various insurance products, the health industry, eligibility criteria and tips for getting through the process. The amount of benefits available to a person and the total cost of a policy is calculated based on the total number of people in the family, the age of the applicant, medical history, employment status and income level.

Homeowner’s Insurance

When buying a home, the owner assumes obligations to buy insurance. An insurance that is bought will protect against damage caused by disasters(hazard insurance), like fire and storm, to that home as well as from declining property values in some cases. A typical homeowner’s insurance also insures most items in your property, such as personal things, collectibles and furnishings. The mortgage lender will dictate the extent of insurance coverage the owner must maintain. All other components of the policy are at the owner’s discretion. Homeowner’s insurance cost is based on risk, just as health insurance cost is. The greater the risk that the owner will file a claim against the policy, the more he will pay as premium.

Vehicle Insurance

Buying a car insurance marks the beginning of the short or long term relationship with the car. Over the course of driving, people make mistakes, events trigger, and things can go wrong. Having a reliable car insurance policy will protect the driver from these potential dangers and shift the cost burden to the insurer so he can continue to safely own and drive it. The cost of the car insurance is affected by many factors including, age, marital status, job, car type and driving history.