Insurance is a financial product that is used to protect against certain types of risk. Different types of insurance cover different types of risk.
Life insurance, for example, protects you against the risk that you might die. Auto insurance protects against the risk of a car accident or other damage to your vehicle or damage caused by your vehicle. Homeowner’s insurance protects your home.
In most instances, people get insurance to cover things that could happen, but that won’t necessarily happen. Even life insurance, which is to cover death and everyone dies, is normally purchased during a time in your life when you have a low likelihood of dying.
With insurance, many people pay into a pot so that the few who experience the problem can benefit from the premiums of the larger group.
Everyone who participates in insurance benefits. Whether its peace of mind, protection, or financial reimbursement, everyone who buys insurance gets something out of it.
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March 12th, 2009 at 10:17 am
I do agree with you that everyone who particpates in insurance gets something out of it.
In addition, if you buy life insurance, you get the peace of mind knowing your family is protected if you should die.
And, your family gets the financial security that life insurance provides, as well as, knowing you cared enough to provide the rpotection they need, and deserve, for their future.