What Is Insurance?
Insurance, Huff InsuranceInsurance, as a means of protecting a person’s interests against loss or damage has been used for at least 5,000 years — originally by traders seeking to protect their sea-going cargoes — but the first real policies, in the way we think of them today, came into being in the 17th Century.
The first true insurance company was founded in the wake of the Great Fire of London in 1666. And, in a way, that tells us something about the way some people look at insurance: they don’t worry or think about it until something awful happens and, by then of course, it’s usually too late. Insurance, after all, is about pooling your money with lots of other people so that, if things do go wrong, you can recover what you lost or pay for particular health services like healthcare without it costing you a fortune. You can’t do that after that fact!
Naturally, you, and we, hope disaster never strikes. But if it doesn’t, you should never think of that premium money as having been wasted; that wasn’t the reason you were paying in the first place. In a sense, you are buying security and peace of mind based on the fact that none of us knows what awaits us around the corner.
Obviously, in our opinion the answer is undoubtedly “YES”. Here are just a few of the reasons why:
An average of more than one in every hundred homes suffers serious damage each year mostly caused by fire and weather events.
Earthquakes have hit 39 states since 1900 and caused damage in all 50 states.
Almost one half of all people in the second half of their working lives will suffer a disability lasting more than 90 days before reaching retirement age.
Most people who reach retirement age will need some level of Long Term Care in their later lives – 58% of men and 79% of women.
More than two million homes are burglarized every year, and more than a million cars are stolen
The cost of medical care is rising considerably faster than the rate of inflation. Thousands of people die every year because they don’t have insurance cover.
Peace of Mind
Serenity, confidence, the absence of stress or anxiety… by any definition, “peace of mind” is what everyone wants in protecting what matters in their business and personal lives.
Whole Life Insurance
Life is filled with uncertainties and risks. Life insurance protects you against unforeseen events by minimising their impact on your dependants.
A life insurance policy pays out a lump sum in the event of total and permanent disability or death. The benefits are intended to cover immediate to longer-term financial needs of your family members such as parents, spouse and children.
Are you under insured?
Are you adequately covered so that your loved ones will not experience financial difficulties should anything happen to you?
In assessing your needs, consider:
the number of dependants you have the lifestyle you want to provide your family with after your demise your children’s education needs your outstanding debts and mortgages.
To gauge how much insurance coverage you need, go to the protection calculator.
Professional advice is important
Your financial circumstances are not exactly the same as another person’s.
It is advisable to seek the help of a financial adviser whose job is to guide you in making choices you understand about your financial future, and provide you with suitable financial solutions that will protect you and your loved ones in the event of a calamity.
10 Key Benefits
When you take out an insurance policy, depending on the risk you are covering, some of the benefits you might gain include:
- You reduce or eliminate the risk of facing sudden, major expense if you, your family or your property suffer a misfortune.
- You have the funds to meet the costs of any liability claims made against you, when you get blamed for someone else’s misfortune.
- You create security for yourself and your family in the event that you lose your earning power through job loss or disability.
- You provide financial security for your family in the event of your death.
- You are covered if someone else who isn’t insured injures you or damages your property.
- You have the best chance of quickly recovering your lifestyle after damage to your property, with someone taking care of you while restoration or replacement is under way.
- You improve your credit-worthiness by being recognized as a responsible citizen, and may even be able to raise funds on the security of a policy.
- If you’re in business, you can insure against risks that otherwise might not allow you to compete against bigger, financially stronger contenders.
- You can protect yourself against the damage caused by some of the modern financial crimes, which are otherwise difficult for you to understand and assess – like identity theft.
- By contributing to insurance companies you are sharing in the cost of researching ways to improve our lives, making them safer and reducing risks.