subject: Why Insurances Are Important [print this page] Insurance companies rarely have a great reputation as a whole. The industry is often seen as businesses who think of nothing but profit, corporate greed. In many ways, that's true. The companies can be hard to deal with, and many of the decisions they take are for the sole goal of improving their bottom lines. But insurance policies are vital to an evolved society, one where the amount of risk and unknown has to be reduced as much as possible. Here's why insurances are important
First, it's true that insurance companies are driven by profits. But that's because all companies are. It's the role of a corporate entity to bring the best possible value to their share holders. If an insurance executive did not follow those practices, he would be fired for failing at his job. This is how capitalism works on average, and there's little that can be changed. This can be quite ironic since the very product of an insurance company is to provide financial support to people who aren't share holders. They basically end up needing to pay clients. That's why they are often so stingy on making sure what they pay is what they agreed to, and want to root out all scams, even if it makes life harder on the legitimate clients.
However, once you look past all that, it shouldn't be enough to prevent you from taking insurance policies. They are, on the whole, a good thing. Without them, you would never know when something could happen to you, and ruin you. It could be a house fire, a disease, or a car rash because of a moment of inattention. Regardless of the cause, the fact we have insurances means we don't have to pay for these unknown out of pocket. We trade a well known quantity, the monthly premiums, for big pay offs in case we need it. Of course that doesn't sound very comforting when all you're doing is paying monthly fees without seeing much return, but when an accident occurs, then that all changes.
And you might tell yourself that everything you have is replaceable, that if you do crash your car, you would rather buy another one, but it's not always up to you. The reasons some of these insurances are forced onto you by law, is because if you do crash your vehicle, it might be into someone else, and they need to be protected as well. Overall, insurances are a good thing in a civilized society, and even if the money you pay up every month seems like a lot, the alternative may not be any better, for you or for the people around you.
by: Casey Trillbar
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