Insurance is the liability of a company or government to cover a specific cost in exchange for premium payments. A premium payment is merely money that must be paid to an insuring company or governing body periodically, that is until the individual decides to switch to another. Originating during the golden age of embargo back in the late 1600s, insurance was first introduced as a channel by English merchants to guarantee their products arrived to their buyers without incident. This type of insurance is like the warranty included when purchasing a new laptop from electronic retailers such as Best Buy. However, not until 1706 did two Englishmen named William Talbot and Thomas Allen established the first “official” insurance agency, located in London, England. It was called the Amicable Society for a Perpetual Assurance Office and it focused on a type of insurance known today as “health insurance.” Many Americans today do not have health insurance; as a matter of fact, close to 47 out of 321 million are not insured. The neglection of health insurance and any other variety of insurance pertaining to an individual’s life is important. Without it, one can expect an uninvitingly difficult life.
With the many forms of insurance, it includes health, life, property, and vehicle. Automobile insurance, or auto insurance, is the coverage of vehicles owned by an individual or firm. Were that vehicle to be damaged or lost, the insuring company would cover some, most, if not all the cost to replace parts of the vehicle or the vehicle itself. Health insurance pertains to hospital bills arriving from the dentist, the orthodontist, and any other health specialist, which may cost over $10,000. Life insurance is the coverage of what transpires after one’s death. Take for instance, the death of a father and husband. That man’s family would be “covered” in terms of articles such as funeral expenses and health vehicle. During other instances, the family may just receive a fairly large monetary payment. Property insurance is the coverage of one’s home and in some cases land. Were their home or land to be damaged or destroyed, the insuring company would be responsible for paying for a portion of the repairs if not all it. Other forms of insurance include travel, credit, and liability insurance, although, as mentioned previously, their function is to cover costs, but it may also produce another benefit that is to take away one’s unnecessary responsibilities. Take for instance, an accident that requires a mechanic to fix a vehicle or perhaps medical attention, both of which will produce a hefty bill of also, at least $10,000. Were the charges to be this steep, most Americans that do not have auto and/or health coverage(s) are not able to pay for it out-of-pocket.
As the cost of products and services become more expensive, having insurance in general is as important as having a credit card. In no circumstance, can the average individual persist by generally paying out of their own pocket for damages, let alone for something such as $60,000 vehicle. Instead, most individuals “borrow” money from the bank. For insurance, individuals are also, essentially, “borrowing” money from the “bank,” or in this case, an insurance agency. Although, this “borrowing” is based off a premium payment, also known as a periodic payment, in exchange for nearly ten times the coverage, or perhaps much more, depending on the degree of the accident or nuisance being dealt with. Take for example, a periodic payment of $30 a month and in exchange, an individual’s health insurance covers the cost of new braces for their child, which is, at the least, $3,000. However, it should be noted that the amount of “coverage” one receives depends on the insurance company’s aptitude in handling the situation, also known as a claim, and how much they are generally willing to cover. The amount of money an insurance agency covers can be compared by using websites that offer “quotes.” In terms of health insurance, were an individual to go to the hospital with a broken arm and not have health insurance, that hospital would most likely turn him or her away as they are not receiving payment. It should also be noted that a hospital is a serviceable business, and like most forms of businesses, they likely require money to perform a service. In terms of auto insurance, were one to total their vehicle, paying in cash to fix a vehicle would be a far-cry, as mentioned before, the cost, like hospital bills and braces, would become too much to bare. In other factors of life such as home and property, insurance is the very thing that can keep one from living in vagrancy. Were there to be a house fire, and some parts of that house were destroyed, the cost of repairing it would, again, likely be too expensive to pay with one’s own money. Property insurance, like all other forms of insurance, will help cover a portion if not all the expenses required to fix or rebuild the house and/or land.
Although having insurance deducts monetary costs, it also assists people avoid dealing with unnecessary responsibilities. Instead of, for instance, having to treat a wound individually, the effect of having health insurance would at the very least keep one from feeling more acute than he or she already is. Another rationalization would be simply in terms of one’s life. For example, the use of health insurance for a mammogram to discover whether one has breast cancer. In another instance, would be the treatment of the breast cancer itself with prescription pills and/or hospital visits for chemotherapy. Without health insurance, one can expect either an unreasonably priced bill coming in the mail or a short-lived life. The former part of the concept goes for auto, property, credit, and all other varieties of insurance. Exorbitant fees should not be a fret in one’s life.
Summarily, insurance has existed for hundreds of years. In the event of an accident, insurance will save one money and in a greater value time that’s taken away from unnecessary obligations. Like credit cards, they offer the opportunity for spending money that is considerably beyond one’s reach, but unlike it, one does not have to repay it in full. Instead, it requires a constant influx of money in exchange for covering expensive costs; if anything, insurance offers free money, so why not have it, whether its health, auto, or credit insurance among many others? An opportunity at a steadier life awaits with insurance!
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