When determining insurance needs, which risk should be insured first?

Health insurance should be prioritized when determining insurance needs because it provides essential coverage for medical expenses, which can be significantly high and unpredictable. Healthcare costs can arise unexpectedly due to accidents or illnesses, and without adequate health insurance, individuals may face financial hardship due to medical bills.

By ensuring health insurance first, individuals protect themselves from the potentially devastating financial impact of high healthcare costs, which can quickly deplete personal finances. This coverage not only helps with hospital visits and treatments but also provides access to preventive care, which can mitigate health issues before they become severe and costly.

Other types of insurance, such as auto or home insurance, while important, generally cover assets or liabilities rather than addressing immediate health needs. Additionally, minor risks may not be as financially burdensome compared to health-related costs, making them lower priorities for insurance coverage. Overall, prioritizing health insurance ensures that basic and critical medical needs are met first, promoting overall financial security and stability.