Is Insurance Necessary Evil?
Is Insurance Necessary Evil? Insurance, while often seen as a necessary evil, is a product and service that should be rooted in the same kind of two-way commitment that many of us expect from other parts of our life, like our jobs or family members.
The insurance industry wants you to think that you need their services, and to some extent, you do if you want to protect yourself from anything from an accident in your home to the loss of your job.
However, insurance can be costly, especially in the long run when you get used to paying month after month with no real guarantee that you’ll ever get anything back.
Introducing Insurance
Is Insurance Necessary Evil? Many business owners think of insurance as a necessary evil that they have to pay for to protect themselves and their businesses. But insurance is often an excellent example of a relationship based on mutual commitment and reciprocity.
Is Insurance Necessary Evil? When you’re starting, for example, you’ll likely need help setting up your policies and navigating any tricky legal issues. You’ll also want to make sure you understand how coverage works and how much your premiums will cost.
In addition, if something goes wrong—like if your business burns down or a supplier doesn’t ship according to schedule—insurance can help cover those costs.
Why do we have Insurance?
Insurance is often viewed as a necessary evil: necessary to protect our assets, but not something we actively look forward to.
The same can be said for paying premiums – they’re an expected expense that’s built into our monthly budgets (if you’ve ever paid your rent/mortgage or student loans/debt before, you probably know exactly what I mean).
Is Insurance Necessary Evil? However, insurance companies don’t have to exist evilly; they can behave differently and contribute back to their members and communities.
What type of insurance to choose?
Is Insurance Necessary Evil? So, what is insurance exactly? Insurance is a product or service you purchase to mitigate risks for which you might be responsible.
While insurance can often appear as nothing more than a necessary evil, it is possible to find good policies and enjoy positive relationships with good companies.
Many people find that insurance can help simplify their lives and remove financial worries.
If you’re thinking about getting insurance soon, here are some questions you should ask yourself: Which type of coverage do I need?
What kind of coverage is available for my needs? How much should I be spending on insurance every month/year? Should I get group health insurance through my employer or will my family be better off with private health insurance?
How much do you need?
The average household in America spends roughly $15,000 per year on insurance. If you’re a typical American, you probably have an insurance policy for your car, life and home.
You might even pay extra for an umbrella policy or a rider to add coverage for valuable items.
The cost of premiums and deductibles has been steadily increasing over time, but there are ways to lower that bottom line.
Is Insurance Necessary Evil? Insurance is not all bad!
It’s true that insurance can be expensive and can feel like a necessary evil at times. However, there are quite a few advantages to having coverage: Insurance is intended to make you whole if you’re ever in a catastrophic accident or situation.
Is Insurance Necessary Evil? As a bonus, it also covers smaller expenses along your journey as well (such as car repairs and medical co-pays). If your wallet seems too light after paying your monthly premiums, consider all of these benefits before giving up on insurance altogether.
That said—before jumping into any policy—make sure you read through each of the fine print carefully so that you have a clear understanding of what kinds of expenses you’ll be covering.
How to compare costs and buy insurance online
Insurance can help protect you from financial loss caused by events that are beyond your control, and many Americans are underinsured. However, some consumers may be overinsuring themselves by paying for more coverage than they need.
Is Insurance Necessary Evil? A recent study found that most insurance policies have deductibles as high as $10,000 and cover little more than replacement costs for an average-priced vehicle.
If you’re underinsured or overinsured on certain types of coverage—or if you’re not insured at all—you could be putting yourself in danger financially.
To avoid financial risk and ensure your family’s future security, discuss insurance needs with a licensed agent or broker to determine what’s right for you based on your particular situation.
Conclusion: Is Insurance Necessary Evil?
While insurance can be expensive, it is a necessary evil for those who want to protect themselves from unforeseen events and help their loved ones if something should happen.
Insurance doesn’t mean that you’re scared or lack self-confidence. It just means that you want to keep your options open—and guard against things beyond your control.
Look at it another way: How do you feel when an insurance salesman comes up to you? Probably not so great, right? Would you prefer to be in control of what happens next if someone tries to sell you a policy and then never hears from them again?
Is Insurance Necessary Evil? You can do exactly that by purchasing insurance directly through your insurer—which will save money since they don’t have to pay third-party salespeople commissions, too.
