And we have to be ready to face these head on, in case something worse than a small fire happens in our kitchen. That is why we need to insurance -- to offer us protection at the worst of times.

Why don't I give you a better idea of the various benefits of insurance? In order to do this, the five main kinds of insurance will need to be tackled briefly.

Auto Insurance: It is mandatory to have at least basic third party coverage. Although the premiums for comprehensive and collision are higher, one would be advised to avail of a policy that would cover a variety of possibilities. You might think you don't need it, but accidents on the road do happen and it's better if you are prepared.

Something as small as covering up a scratch could prove to be very expensive. Auto insurance does not promise you won't get into an accident, but it will certainly help in times of road crisis.

Health Insurance: Aside from the health benefits most companies offer for their employees, individual policies are also available to consumers. HMO is the most popular and least expensive of all kinds of health insurance. The other kinds are PPO (Preferred Provider Organizations), POS (Point of Service), FFS (Fee for Service) and PDC (Prescription Drug Coverage).

A lot of older people opt for PDC, as this kind covers all of their medications. Most people today are aware of the benefits of investing in health insurance. People who have already experienced the benefits are its active proponents.

Dental Insurance: Dental benefits are usually included in your health insurance, but if you feel that your teeth will need more than just the usual cleaning, dental insurance is more appropriate. Be aware that dental insurance is a separate policy, and will most likely be more than the usual $10 additional fee to your existing HMO plan.

Insuring your children's teeth might be great at the very outset. They will most likely need this more than you.

Life Insurance: We all know what life insurance entails. So let me enumerate some of its benefits. Your family and other loved ones will be well taken cared for when you pass, either unexpectedly or from natural occurrences. This kind of insurance is best for those who travel a lot, work in high risk environments, or have young children to support. The life insurance policy will ensure that your family has something to fall back on after your death.

Homeowner Insurance: No matter where you live, it would be prudent on your part to get homeowner's coverage. If you live in an area with a high crime rate or natural disasters, have valuable art collections, or just want some peace of mind, with homeowners' insurance in place, you should have some peaceful nights.