Why Take Risks When You Can Be Insured?

It's better to be safe than uninsured. Modern life is fraught with risks and dangers due to the interdependence of every aspect of our social and economic lives. When value and money exchange hands we often put our hard work, savings and future comfort at risk. Getting insurance is a way of avoiding the avoidable.

Human societies have always had mechanisms of keeping a back-up plan. In previous times, if a calamity struck the house of one person, the community would pitch in an help him build another. In this display of good neighborliness was an implicit understanding: I'll help you now so you have to help me when I get into trouble. However, as societies progressed so have the means to lessen risk, so much so that the insurance industry is a global trillion dollar business.

Although the forms may change from time to time, the basics remain the same. An individual or group wants to be repaid an amount in cash or kind if the improbable happens. The improbable event can be having an accident, crashing a car and sustaining injuries. In this single event, three risks and therefore three types of insurance are involved: for the car, health of the passengers and their lives as well. The insurance company, on the other hand, will offer you 'coverage' for the improbably if you pay them a suitable amount called a 'premium'. This premium is assessed by factoring things such as the condition of your car and the average rate of accidents of where you live. Hence, you sign for a policy covering certain aspects in return for giving periodical payments of premium.

Naturally, insurance can take on any form in almost any instance where any loss of value is possible to take place. The most common are life, health, car, house and travel insurance though this is only a sampling and it can take many minor and subtle forms, for example 'Young Driver Car Insurance' offered by a car insurance agency. However, the game has lots of pitfalls and nasty corners that can be avoided.

Firstly, it's the fine print that's important. While getting a insurance policy, companies use vague language and 'subject to condition' clauses to level best avoid their obligations in the event of a claim. That's why it must be made sure that clauses are carefully read and understood before proceeding further.

Despite the benefits of all types policies to choose from, the type and extent is dependent on the particular situation an individual, business or family is in. Studying various options, assessing needs, present and future, have to be done carefully so as not to succumb to hype or often well intentioned advice, and choose what's best. One of the first steps to take is to research the internet extensively before seeking professional help if desired. The benefit would be to understand the terminologies and options beforehand before committing your money anywhere.