subject: Discerning The Things That Are Worthy Taking Up Insurance For [print this page] Nowadays, there is insurance for pretty much everything. In the old days, as we may recall, we used to have only three main types of insurance. Those would be life insurance, health insurance and car insurance. A person could also take up home insurance and perhaps insurance for their business premises, but that was about it all. When you took life insurance, you knew that your dependents wouldn't suffer financial distress in the event of your encountering a sudden death. When you took health insurance, you knew that your medical bills would be paid for, in the very likely event of your falling sick in the period of time covered by the insurance policy. And when you took up home and business insurance policies, you knew that you could get compensated, in the event of your business premises or your home getting burnt, flooded or suffering some other similar fate accidentally.
These days, though, you find everything, from educational policy to personal accident cover, to specific health procedure cover and a lot more in between. If you are a farmer, you can take up an insurance policy against your crops, so that you are compensated in the event of a crop failure. The same situation obtains, if you are a farmer but in the livestock sector: you can insure your livestock, so that you can be compensated in the case the animals die in a disease epidemic or in case they die in a drought. If you have some beautiful trophies back home, you can take insurance against them, so that you will be compensated in the event of their getting accidentally lost. If you cannot afford full home insurance, you can take coverage against specific items in the home - say those beautiful sofas or that expensive tele in the house, so that you can get compensated in case of their accidental loss.
Simply put, if anything is at risk, and that risk can be evaluated in statistically established probability models, then you can get insurance for it.
With so many different types of insurance cover, though, we find ourselves in a situation where we have to make up our mind cover types are worth taking up, and which ones we should just let be. Most of these types of insurance cover will be attractive, but we can't take them all - hence the need for this discernment process.
Ultimately, what should guide your decision, as to which type of insurance cover to take up and which one to let be are 'peace of mind' considerations. If the very idea of your losing anything (or of some event coming to pass) immediately takes away your peace of mind, then by all means, you need to take up insurance cover against it. If on the other hand the idea of losing something or a certain event coming to pass doesn't greatly disturb you, then you may not need to take up insurance for it. When faced with the numerous insurance policies and very limited purchasing power, your focus should be on purchasing 'global' insurance policies - such as life insurance, health insurance, home and business insurance policies - which cover most other things to some extent.
by: Gen Wright
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