When you’re a padawan just delving into the financial world, you’re more focused on saving, investment portfolios, stocks and so on. Most times, we get lost and too focused on these aspects that we forget about insuring our assets. Insurance is a key element when planning our finances as advisors say it should be among list of considerations when people evaluate the total financial picture.
So what is this insurance and why the brouhaha about it?
Well, I’m basic terms, insurance is a means of protection from financial loss. It is a form of risk management primarily used to protect against the risk of uncertain loss. The brouhaha about insurance is that it allows individuals, businesses and other entities to protect themselves against significant potential losses and financial hardship at a reasonably affordable rate. The insurance company is called the Insurer while the person buying insurance, is called the insured and both enter into a binding contract called the insurance policy which details the conditions and circumstances under which the insured will be financially compensated for any loss.
The loss suffered may not have to be financial only as there are different types of insurance such as home, life, business, auto, health, income protection, property, burial, liability and so on. You have to assess your assets and what you want insured then look for the best insurance options out there for your asset. Insurance doesn’t just favor you but your family or business partners to save them from stress and loss of your assets.
All I’m saying, you and insurance company should be like
Have a lovely day.