Who Gains With Insurance?

Who Gains With Insurance?

Who Gains With Insurance?

An insurance policy basically protects you against a potential risk. I remember my dad telling me that a life insurance policy is a waste if you do not die. Sounds strange, if not absurd. But the idea behind that statement is sound. Basically, a large number of people were exposed to a certain kind of risk, such as the risk of death, test, fire, bad health, dental problems, vision, accident, or some other, but she is an insurance policy. The basic concept here once again is that only a few of them will actually be exposed to the adverse event.

The ones would do get affected, would have to bear the brunt of huge expense and inconvenience. In fact, they may not be able to afford the expense involved. As a result, if the pool money, in the form of insurance premiums, each one of them is protected. How does this work?

Basically the insurance company collects such insurance premium from a large number of people, each of who bears a small risk of the adverse circumstance. A few of them will actually be affected by the adversity, and the insurance company will pay for that event. But it will profit from the fact that so many others paid the premium, but did not actually need be serviced in any way.

So, who wins? Who loses? Going back to what my dad told me when I was young; it would seem that the ones who are able to successfully claim money from the insurance company has succeeded. But that need not be the right way to look at things. Especially as, the ones were able to make a claim, will need to have posed to adversity. The adversity that was insured against.

If you buy an insurance policy, and do not suffer adversity, do you end up losing? That is a matter of perspective. In cold calculations, you did end up losing the premium. However if you find that there is a certain amount of peace of mind arising from paying that premium and being insured, then you did not really lose. Learn about Tower Life Insurance. Also make sure to visit Zurich Life Insurance policies.

In some cases, such as the third-party insurance policy for vehicles, there is a legal mandate to purchase insurance. This is because if you run into an accident, with your car, and it is not your fault, you want to be able to make a claim. But what if the culprit is not insured? For no fault of yours you would have to bear huge repair and replacement expenditure. That is why a third party policy is required. That policy will pay for your damages.

So what do you think? Do you feel that insurance is a needless expense? If you do, I do not blame you. Insurance companies, after all, our businesses which are established to make profit. And the profit is coming from you. So there is the likelihood of feeling short change when buying an insurance policy.

At the same time, think about your situation in case an adversity does come to pass.

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