You Mean There is More to Insurance Than Price?

 Insurance companies take a bad rap at times

It is possible you may have a bad opinion of insurance companies in general.

You may have a personal experience that makes yu believe that insurance companies are not in the business of paying claims at all --- but of refusing them.

Do you know friends of friends who were screwed over by an insurance company?

If you do not think highly of insurance companies, you're not alone.

In some cases, the insurance company does drop the ball.  But the truth is there is a lot of good about insurance companies.

HARD REALTY:  Not all companies are created equal.  There are some better than others.

*    What would make us happy?

*    That is easy:

    *    if the insurance company covered every loss you reported,

    *    if the insurance company paid your life insurance benefit regardless of the reason for death...

    *    if the healthcare provider paid your entire bill, regardless of pre-existing conditions or                              unexpected circumstances...

    *    if the auto insurance company paid for your damages on the basis that the accident caused you                stress...

Who would not be happy with that?  That would be great.  We would all love to be paid for our stress!

In the perfect world, that is how insurance would operate.  But --- yeah, you know what is coming --- we do not live in a perfect world.  Insurance companies cannot afford to lliterally cover every single incident that causes you stress and/or loss.  If they tried to do so, you know what would happen?  They would all go broke --- and fast!

Why is that?  Because paying every single claim, no matter the circumstances, is not how insurance operates.  These companies have to show a profit ---- or they have no proceeds from which to pay claims in the first place.

They play probability-game:  they, in effect, "gamble" that the majority of policies will never have claims on them...and price their policies accordingly.  If the Majority of policies did have claims on them, and all those claims got paid, you couldn't afford insurance at all.  No one could!

Spread the Risk, Limit the Loss

You know how I talked about this insurance operation being a "gamble"?  That is because insurance is a form of risk management; it is a hedge against potential loss.

As the insurance, you transfer the risk for a loss (big or small) to someone else.

The insurance company manages the risk and agrees to spread it across their entire customer base.

And places LIMITS as to how much is covered.

That's what your premium payments buy.

And the tradeoff of an affordable premium is the deductible --- the amount you pay on your own.

All this only works because of the limits placed by the insurance company on what will be covered.

If a certain incident is not coverable in a given insurance contract, that means the insurance company has determined that they cannot afford this type of loss --- in effect, they cannot pay for it under these terms --- and so it is excluded from coverage.  But here is an insider secret:  Insurance companies have certain types of losses they specialize in covering.  No one company can be everything to everybody. 

It is the fine print in the policy.

The stuff that can cause severe heartburn when it is time for a claim...unless you have worked with your agent to be sure you are adequately protected.

The worse time for a surprise is when it is time for a claim.

And all this is important to know because....?

Do not be fooled.  The insurance industry may not be out to profit from yor suffering, but they are in the business to make money, which is why your agent is so important.  They become your researcher, your advisor and your advocate should you ever have a claim.  Often your insurance is only as good as your agent.

So what to do if one company, or one insurance agent, comes to you with what looks like an offer that is far better than what you currently have?  Just remember there is more to a "deal" on insurance than premiums alone; Insurance isn't just going with a "low bidder."

In my book, I will detail some inside secrets of this industry:  how to choose between insurance companies and insurance agencies --- and what is crucial to know about the various types of insurance.

And so, at the end of the day, maybe you will be among these people who don't mind talking about insurance --- or eve shopping for it!  The bottom line is, you will always be:

Insurance is all about protecting

you and your family

    Look, we all do it:  we chase dreams.

    We plan for the future.   

    We build our "golden nest eggs" for our retirement years.

    We do our best to cover the contingencies in our lives.

    But what happens when a major accident or natural disaster occurs?

That is when --- and why --- insurance matters.

    One trip by a stranger on the sidewalk in front of your business

    One error in judges in your business

    One natural disaster ... and you could be facing hundreds of thousands of dollars in expenses.  It would be life altering.

Insurance isn't about "cheap" --- and it's not about betting against your change of loss.


Brian Cameron

Cameron Group, Inc

845-627-2130

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