Everyone needs insurance

SETH DUKES

Newsroom Coordinator


Insurance is something that every person will need at some point in their life. Whether you’re insuring a car, a home, or yourself, it’s important to understand why you need insurance and how it can keep you from getting into a very sticky situation.

What exactly is insurance, and how does it work? In the simplest terms, insurance is essentially a method of spreading out risk among many so that one person or entity doesn’t bear the brunt of a loss.

We, as a species, figured out that insurance was a good thing a long, long time ago. What looks to some like an insurance policy can be found in the Code of Hammurabi from the 18th century B.C. Even hunting in early civilizations can be viewed as a sort of insurance ­– the more people that are out there with you, the smaller the chance that you’re the one that gets mauled by a boar.

A form of insurance was also crucial to the early shipping of goods. You wouldn’t want to put your entire stock of silk on a single boat for shipping, even if it would save trips and money. If your ship sinks or is attacked by thieves, you’ve lost your entire supply. Instead, the risk would be mitigated by shipping a little bit on several ships. In that case, whether the goods were stolen or destroyed, you wouldn’t suffer as large of a loss.

Insurance is so important that, in some cases, it’s mandated by law you have it. Even in cases when it’s not required, it’s still a good idea to investigate potential insurance options to save yourself from a sticky financial situation in the future.

Sometimes, things just can’t be helped. You can take exceptional care of your body for your entire life and still end up with a disease that will land you in the hospital for weeks or months, which is going to rack up a significant bill. Without insurance, you could be paying on that bill for the rest of your life.

Life insurance policies are also worth looking into. These policies will insure that, when you’re gone, your family can afford to pay your final expenses and, maybe, even have some left over.

So, what are some key things to consider when deciding on a provider? For me, the most important thing is being able to reach a real human on the phone if I have a question. Nothing is more frustrating than phoning in for help and having to navigate a lengthy touch-tone menu to reach a human rather than a robot. Having a direct line to an agent goes a long way, and it can save you a lot of headache. I’m willing to pay a higher premium if that means I get exceptional customer service. I can’t imagine standing in front of a burning house and being asked to press three if my question is about homeowner insurance.

You may also want to consider bundling all of your insurable assets to both save money and simplify things. If you’ve got your home, car, and life insurance all with the same company, then you only have to worry about one bill and only have to interact with one company for any questions you might have.

You’re not invincible, and I assure you that “it” can happen to you. Paying that premium every month can sometimes feel like a waste, but when you have to file a claim, you’ll be glad that you did.

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