Risk transfer: Passing the risk from your shoulders onto the shoulders of an insurance company. In exchange for the burden of risk, the insurance company asks you to pay a premium.
The insurance company knows that some people will outlive, cancel, forget or will not apply for the benefit and, conversely, that some will collect.
The premiums are calculated based on the percentage of chance that the insurance company will have to pay out a claim.
Do you need to purchase Insurance?
The answer to this question varies from one person to the next. If you are independently wealthy you can self insure. If you have assetts that are liquid on disaster, you can self insure.
If you are the average wage earner, maybe supporting a family, or you are a couple or are single and have some debt then you do need insurance.
When you realize that 100% of people (not 99%) will die someday, then it only makes sense that every single person should have life insurance. Now, how much and what type? Well, that’s where we come in.
Can an Insurance company refuse to pay?
An insurance contract is a legal and binding agreement. Once the insurance company accepts your premium and provides you with a contract, they are at risk. There are circumstances of fruadulant application information and suicide which can disqualify a policy but for the most part, the insurance company is committed.
HOWEVER, if underwriting is done at the time of claim instead of the time of application, there is a back door. Mortgage insurance is one example. Click on the link to Market Place – in Denial to the right to learn more.
When’s the best time to buy insurance?
The very best day to buy insurance is the day before you need it. The next best day to buy it is when you can qualify at the lowest rate and it fits in your budget.
- Life Insurance
- Health & Sickness Insurance
- Critical Illness Insurance
- Long Term Care Insurance
- Disability Insurance
- Travel protection
- Term Insurance: 5, 10, 15, 20, 25, 30
- Term to age 100
- Mortgage Insurance
- Permanent Insurance:
- Whole Life,
- Universal Life,
- Guaranteed Issue,
- Prescription drugs
- Dental Coverage
- Eye wear programs
- Travel Insurance
- Heart Attack
- Coronary By-Pass
- plus 18 more life threatening illness
- Coverage for elderly and incapacitated individuals
- Short or Long Term disability insurance.
- Employee benefits.
- Suplemental Benefits
- Holiday travel peace of mind