Insurance Problems and the Economy
The concept of insurance is getting a lot of mishaps in recent news. Something that is normally considered as a way to lessen financial risk is now ending up a factor that actually increases it. Nowadays, with the downhill trend of economy that we are currently facing, insurance companies that declare bankruptcy is a frightening prospect for a lot of people who have done business with them.
But why the distrust with insurance companies these days? There are speculations that it's because of a company's direct refusal to insure a person with a high likelihood of loss. For example, someone who engages in extreme or contact sports will have a low chance of getting life insurance. If you're someone with a high-risk profile, you may have problems getting legally insured. To a lot of people, this is the exact opposite of what insurance is.
Which leads us to the question: What is insurance supposed to be? Many of us invest in insurance without completely understanding how this affects our finances. In anything concerning money, a blind investment puts it in serious risk.
At the core, purchasing insurance is an act of accepting a definite loss of assets (in this case, the payment of a periodical premium) so that a larger, possibly devastating loss is averted. The loss that is to be avoided must be accidental; an insured person should not deliberately trigger the accidental event. Such a thing is understandable, as there are some enterprising people who wants to make some quick cash by deliberately getting themselves in accidents.
This is where a lot of potential problems come in. The idea of mitigating an accidental loss becomes problematic if the insurance company suddenly goes bankrupt. Then it would just feel like you accepted a definite loss for no gain whatsoever. This is what pisses a lot of people off. - 23162
But why the distrust with insurance companies these days? There are speculations that it's because of a company's direct refusal to insure a person with a high likelihood of loss. For example, someone who engages in extreme or contact sports will have a low chance of getting life insurance. If you're someone with a high-risk profile, you may have problems getting legally insured. To a lot of people, this is the exact opposite of what insurance is.
Which leads us to the question: What is insurance supposed to be? Many of us invest in insurance without completely understanding how this affects our finances. In anything concerning money, a blind investment puts it in serious risk.
At the core, purchasing insurance is an act of accepting a definite loss of assets (in this case, the payment of a periodical premium) so that a larger, possibly devastating loss is averted. The loss that is to be avoided must be accidental; an insured person should not deliberately trigger the accidental event. Such a thing is understandable, as there are some enterprising people who wants to make some quick cash by deliberately getting themselves in accidents.
This is where a lot of potential problems come in. The idea of mitigating an accidental loss becomes problematic if the insurance company suddenly goes bankrupt. Then it would just feel like you accepted a definite loss for no gain whatsoever. This is what pisses a lot of people off. - 23162
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Rick Amorey does not advice you to go for get-rich-quick schemes that are rampant on the Internet! With the help of Emini Trading, you will learn a sound, well-built plan to slowly but consistently earn more and more with trading. Join the Emini Trading System now!
posted by X - Men @ 1:15 AM
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