24 Protect Your Assets Protecting your money is easy—you put it in a bank. Protecting your health, your property, and your identity, however, are more complicated. To protect these, you need to take certain steps and precautions. Purchase insurance to protect your health and your belongings. Everyone should be familiar with the basics, and importance, of insurance. Having insurance provides peace of mind. If you have the proper insur- ance coverage, you know that if there's a theft, or you have an accident or illness, your insurance will cover the costs (minus your deductible). What's a deductible? A deductible is the amount you must pay. For example, if your car in- surance policy has a $500 deductible and you have an accident that costs $4,000, you pay the first $500, and your insurance company covers the remaining $3,500. When you purchase an insurance policy, you choose what you want your deductible to be. The higher your deductible, the lower the cost of the insurance. Most people are primarily concerned about being covered for worst-case scenarios, and opt for a high deductible—and a lower payment. Types of insurance There are lots of types of insurance, but most people spend their insur- ance dollars on auto, health, and property insurance. Car insurance – If you have a car, you are required by law to have auto insurance. Health insurance – Everyone needs to have health insurance. There is nothing more important or valuable than your health. Property insurance – Keep receipts, and take photos of all your valuable items in case you ever need to file a claim.