Have you ever stopped to think about the value of insurance? It is an industry which is different from others and is quite unique in a certain way. The purpose of an insurance is to help those who have suffered a loss to gain their lost value back, achieving normality. It is the cover against an unexpected happening which may leave you in a dire situation.
Insurance cannot promise to make you rich. It can, however, enable you to maintain your net worth should tragedy strike. Whilst insurance is indeed a necessity, there are a number of risks which are not insurable. Such risks include bankruptcy and a job termination which may still financially cripple an individual.
When going for an insurance policy, it is essential that one compares the different policies and what they offer. Just because a particular policy comes cheaper does not mean that it is better! At the end of the day, you will get what you paid for. One of the problems is that people do not see insurance and other risk management services in the same way as other services. The general incorrect assumption is that people will still get the same insurance service, irrespective of cost. There are many instances where it is absolutely necessary to have insurance.
Most people will need life insurance. The purpose of such insurance is to cover an individual’s dependants/next of kin in the face of premature death. This will ensure that members of the family are not left in a financially insecure rut, if the unexpected happens. It is also an absolute necessity for a bank home loan, to serve as a guarantee that the repayments are paid in the event of an unexpected death.
This is also necessary for a home loan. With that said, home insurance covers your property in the case of disasters, such as fire or other damage which may destroy your home. Considering that a home is likely to be the largest investment you will make, it is ideal to have it insured.
For many, a car is their pride and joy. With that said, car accidents are no surprise and insurance is an absolute necessity. You can choose different types of insurance. With a fully comprehensive cover you are protected against most accidents, even if you were the one who caused it. With a third party, fire and theft cover, you will pay a lower premium, but you are only covered if the opposing party in the accident is to blame.
Many items such as laptops, tablets and jewellery may cost thousands of Euro. It would be ideal to insure these so that you are covered in case of damage, theft or loss.
An insurance policy gives you peace of mind that you are covered in worst case scenarios. Whilst it may seem as a nuisance and an extra expense, you will never know what can hit you in life.