Not to be Debbie Downer, but bad things can happen in life: car crashes, house fires, serious illness. Shoot - you might get hit by a bus trying to cross the street today. A freak earthquake may engulf your apartment. A meteor may fall from the sky and knock down your fence. Who knows?
In addition to the emotional toll of such tragedies, there is often a financial burden as well. If you break your arm attempting an obstacle course at your son's birthday party, you now have a $30,000 bill from the hospital. How can you pay such a large, unexpected bill?
As an example, an emergency medical bill can send you in a financial tailspin of bankruptcy and debt, cancelling out any financial security gained through higher education. And that is why insurance matters. Though you have to pay your insurance company each month - a "premium" - your out of pocket expenses will be greatly reduced in the case of an accident, emergency, or tragedy.
Purchasing insurance can be complicated and expensive, so you need to do your research. What options are available through your employer or school? What discounts are you eligible for? What types of governmental programs are available? How much coverage do you need to reasonably manage risk?
To get more details on the different types of insurance available, check out the Insurance Module on Education Cents.
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I agree. Insurance does matter. Mostly for the reasonsn you have laid out troy. But is insurance necessary? For instance, would insurance be necessary in small towns or in rural areas of Colorado? Becuase in small towns like that everybody knows everybody. In small towns, car maintainance seems like it wouldmn't be that expensive.
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