Insurance: What About It?

I know, you have been bombarded with tons and tons of spam emails everyday or even an agent approach you selling all sorts of insurance. But what is it really? Is it that important that it now become a necessity to get insurance for yourself or else you will end up busted? Well, well, well I am going to tell you my friend it is really important and you need to get one if you don’t want to end up in a financial turmoil in the near future.

Now, what is the meaning of insurance? It is a form of risk management wherein you will be shielded against the risk of getting a contingent loss. So, before you start wobbling your eyes around and trying to scratch your head, I am going to tell you something in order to give you a clear definition of what insurance is, it is like this.

For instance, you bought a new house right? We know for a fact that certain disasters such as hurricane and fire can ruin the entire structure of the house and eventually you end up with nothing. Now, do you think you have enough money to pull through after everything that you own are all gone? I don’t think so. This is where insurance comes in. You see, what insurance does is you will be reimbursed up to a certain amount as placed in the policy when you are faced with a peril or a risk of contingent loss. There is a caveat there; you need to pay for a premium. It can be in installment like monthly, quarterly or yearly. If you have the money, you can pay it right away. So, what you are doing is simply protecting yourself to further big loss.

For sure, you have heard people saying, “Oh the medical expenses were all covered by insurance” or “the house that was all burnt up by fire is covered by the insurance” and other related statements as those.

With the current economic crisis that we are in now, it is very important to go get an insurance to protect future and devastating loss that will happen like car accident, house getting caught by fire, and loss of a life (breadwinner). The principle behind this is somewhat related to “saving something for rainy days.”