Insurance Problems and the Economy
The very concept of insurance is getting a lot of trouble recently. What should be considered as a way to lower financial risk is ending up as the factor that increases it. And with the downhill economy that we are currently experiencing, insurance companies that are declaring bankruptcy is truly frightful for the people who have business with them.
So, what are the reasons for the distrust laid upon insurance companies? There are those who speculate that it is because of a company's direct refusal to hand over the insurance to someone who has a high likelihood of loss. Persons who do extreme contact sports, for example, may have trouble finding life insurance. If you are someone with a high-risk profile, then chances are good you won't get legally insured. To a lot of people, this seems to be contradictory to what insurance should be.
Which brings us to the question: What, then, is insurance supposed to be? There are a lot of people who invest in insurance without completely understanding how investing in it will affect our finances. If it concerns our money, a blind investment will put us at risk.
At the heart of it, if you are buying insurance, you are essentially accepting a definite loss of assets (the case being, the payment of a periodical premium) so that even more losses will be averted. But, the loss should be accidental; an insured person cannot deliberately cause something that will allow him or her to gain insurance money. Although it's understandable, there are quite a few unsavory characters who have purposely gotten themselves hurt to gain insurance
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. - 23221
So, what are the reasons for the distrust laid upon insurance companies? There are those who speculate that it is because of a company's direct refusal to hand over the insurance to someone who has a high likelihood of loss. Persons who do extreme contact sports, for example, may have trouble finding life insurance. If you are someone with a high-risk profile, then chances are good you won't get legally insured. To a lot of people, this seems to be contradictory to what insurance should be.
Which brings us to the question: What, then, is insurance supposed to be? There are a lot of people who invest in insurance without completely understanding how investing in it will affect our finances. If it concerns our money, a blind investment will put us at risk.
At the heart of it, if you are buying insurance, you are essentially accepting a definite loss of assets (the case being, the payment of a periodical premium) so that even more losses will be averted. But, the loss should be accidental; an insured person cannot deliberately cause something that will allow him or her to gain insurance money. Although it's understandable, there are quite a few unsavory characters who have purposely gotten themselves hurt to gain insurance
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. - 23221
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posted by X - Men @ 1:02 AM
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