Why Insurance is so Important

At our last luncheon we learned about insurance. Most of us are pretty knowledgeable to an extent as to what insurance is, but not all the logistics that factor into it.

When life is smooth and going great we don’t tend to think of insurance as a necessary thing, however when the tables have turned and find ourselves in a crunch we are usually thankful we have insurance to fall back on.

Insurance allows people to save for unpredictable life events in a popular and efficient way that really pays off in the long run. There are some people that might say that insurance is just “beating the odds” but in reality insurance is the ultimate winning situation for everyone.

In my perspective it is easy to sit back and say that you will most likely never be faced with a type of disaster or situation that is necessary for you to have insurance.

The thing is though, your chances of life throwing you a curve ball could be one in a million, but that one millionth of a risk can make or break you and therefore all the more reason for you to have insurance JUST in case.

Some people may ask, “What type of insurance do I need?”---Usually people tend to be concerned with four areas: their life, their possessions, their health, and their finances.

Something you should know when committing to an insurance company is you're just a statistic. To your insurer, you aren’t really an individual person; you are a risk.

Insurance companies base the premiums you pay based on risk factors that include things like your age, driving record, occupation, assets and liabilities and health. Actuaries use these factors to determine how likely or unlikely the insurance company is to end up paying out money because you get ill, crash your car, suffer a home burglary or die (depending on your type of insurance).

I’ve learned that every insurance company is different and has their own way of doing things so it is important that you shop around and pick a company that works best for you. I encourage not to just pick the company that is the cheapest because usually the ones that may be a little more expensive are worth the extra couple bucks. Here are some questions to ask yourself before choosing:

• What conditions or exclusions does the company have that may prevent your claim from being paid?
• Will the company process your claim quickly?
• Will the company still be in business when file a claim?

Things people forget when it comes to insurance-

Read your policy!

• I can’t stress how important this is, because some types of insurance plans have loop holes that you don’t think about unless you have read your policy. Homeowner’s insurance is a good example. Certain things may not be covered so it is your job to find out and know before assuming and ending up in a tight spot.

Is there a discount for that?

• There are tons of things you can get a discount for so ask, it doesn’t hurt you, only benefits you. For example if you quit smoking your Life insurance may go down or if you install alarms in your home your homeowner’s insurance may go down. Also, stop speeding! Maybe that will make your auto insurance go down. So don’t forget to ask!

There are many things to know when buying insurance, so do your research and you will find yourself in a better situation in the long run.