Illustration of a house, car, paper currency, a faceless person, an insurance policy, and an ink pen

Why buy insurance? What kinds of insurance do you need? This Article discusses homeowner’s, automobile, and life insurance and why you might need some.

Homeowner’s Insurance

Homeowner’s insurance protects homeowners against financial loss from damage to their property or liability claims made against them. The protection covers losses or damages caused by theft, fire, vandalism, or natural disasters like the tornado that destroyed homes and businesses in Sullivan and other parts of the country on March 31, 2023. It can also cover personal belongings and medical expenses for anyone injured on the property. Every homeowner should insure the replacement value of the home and the personal belongings inside the home.

Automobile Insurance

Automobile insurance protects drivers and vehicle owners against financial losses involving vehicles. Indiana requires a driver to maintain liability insurance coverage for damages and injuries caused to others by the driver’s negligence. However, the law does not require coverage to repair or replace the driver’s vehicle. Most “full coverage” policies cover the costs of vehicle repairs or replacement, medical expenses, and liability claims. Some policies include uninsured or underinsured motorists, roadside assistance, and rental car expenses.

Life Insurance

Life insurance pays beneficiaries a “death benefit” when the insured person dies. Term life insurance provides coverage for a specific period, while permanent life insurance coverage lasts for the insured person’s lifetime. Policy beneficiaries can use the death benefit to pay the deceased person’s funeral costs and unpaid debts, or future expenses that would be difficult to pay without the death benefit. Most full-service financial advisors say life insurance is a poor wealth-building tool, and debt-free people with enough money to pay unpaid expenses after their deaths may not need it. We wrote about this subject in more detail in our Life Insurance Estate Planning Tips article.


Now, ask yourself, “Why buy insurance?” Insurance shifts an insurance customer’s financial burden of unpredictable future costs to the insurance company. So, you should pay an insurance company now for its payment of costs caused by things you don’t want to happen to you, your family, or your property in the future.

About the Authors

Jeff and Jennifer are Trust & Estate Specialty Board Certified Indiana Trust & Estate Lawyers. They are also active members of the Indiana State Bar Association and the Indiana Chapter of the National Academy of Elder Law Attorneys (NAELA). Jeff is also a member of the Illinois NAELA Chapter.

Both Hawkins are admitted to practice law in Indiana, and Jeff Hawkins is admitted to practice law in Illinois.

Jeff is a Fellow of the American College of Trust and Estate Counsel and the Indiana Bar Foundation. He is also a member of the Illinois State Bar Association, and he served as the 2014-15 President of the Indiana State Bar Association.

More Information

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