Why Insurance?
I know many people who look at insurance as an evil necessity The reality is without insurance you would not be able to do or buy many of the things you do now. The concept behind insurance is to spread the risk of loss among many so that the consequence of loss to any one is not too great. Think about it. Your bank would not let you buy a home without having insurance unless you have enough cash to cover the loan if the home were destroyed. It is the same with your car. What about a business that did not carry insurance? One mistake or loss and the business may very well have to close. I know not everyone carries life and health insurance. I also know many families who have been saved from financial ruin because they had insurance to offset the cost of death or illness.
Insurance companies invest their money in relatively conservative investments. This means that even when much of the financial world might be in turmoil, insurance companies will be there with money to infuse into the economy Often it is insurance companies that loan money to banks and other financial institutions, and insurers buy the bonds that help finance many of our infrastructure needs (roads, schools…). Don’t let insurance intimidate or scare you. With the help of this book, you will be able to prepare for and understand what you are buying. Always remember that insurance is a financial tool to help you feel more secure.
