Thursday, January 28, 2016

Reasons why you should get an insurance policy and how to know legitimate insurance policies

Insurance is simply an act of insuring one's futuristic encounter with damaging events or circumstances.

Wikipedia explains it to be "a form of risk management", Merriam Webster defines it as "the business of insuring persons or property". 

But this write-up is not to talk about the structural meaning and foundations of "insurance", am sure in one aspect of our educational lives or our day to day interactions in this socio-economic world, we have come across  meanings and definitions of the business concept of "insurance" ,

 most times insurance agents(insurers) and companies through TV commercials, or through social networking inform and market their respective insurance policies to our knowledge. 

The main theme of this topic however , is to give vital information about the versatile advantages of getting an insurance policy and why people should implement it as part of their living and planning. 

In this world of catastrophes and chaotic situations, being insured seems to be a useful tool in preventing major losses especially when it comes to safe-guarding properties as well as compensation over losses of lives. 

Without doubt, most people do not see the need of insuring their properties for one reason or the other, some think it is a fraudulent means to exploit people, true there are fraudulent insurance companies and co-operations , that's why this discourse would put you through some factors to enable you achieve and identify an authentic legitimate insurance policy and company.


Imagine you just got a new car, that you've been saving for, for 2 years, and in one unfortunate incident your car had a Ghastly accident(No pun intended), painful right? 

Or you just bought a house, and before you know it, it is totally consumed by fire or destroyed by an earthquake, or flood, etc, and you do no have any insurance for both the car and the house, you are at a great loss, and in that moment you feel the world has ended for you. 

Being insured going by its definitions help you to escape  moment of regrets, it builds an atmosphere of confidence in the insured individual , that he or she can easily replace what has being damaged without too much cost or sweat. 

Another thing that makes insurance so versatile, is that it contains a lot of categories that covers all aspects of living, let's examine a few:

Life insurance: it provides  financial benefit to a decedent's
family and also specifically
provide, income to an insured person's(that is likely deceased) family, burial,
funeral and other final expenses.

Auto insurance : provides the insured person protection and coverage against financial loss of his or her vehicle that was involved in an accident

There is also Health insurance, casualty insurance, Burial insurance, Property insurance each having lot of exciting insurance branches, it will be time-consuming explaining all, but the idea here is to comphrend that the benefits in getting insured, is amusing because it involves managing a lot of risks and misfortunes which are inevitable as we live each day.


Insurance policies sometimes can appear alien, complex and difficult to understand in some cases, especially for those getting involved in it for the first time. And these first timers,( and even a few non-first timers) 

may lack the capability of fully grasping the knowledge of the fees (premium) and coverages included in
an insurance policy. 

As a result, people may buy policies on unfavorable
terms and conditions and put themselves at a corner where they can be easily exploited, scammed or swindled. To avoid such "dark alleys ", 

many countries have
Legalized detailed principles and regulatory organizations governing
every inch of the insurance business, including the way they should be publicized, marketed and sold.

In order for you to know that an insurance company and its policies are authentic so as to avoid being scammed, you must put into consideration that, there is a legal binding and regulations to all insurance bodies, and your awareness to this legal requirements or regulations would enable you determine :the authenticity of an insurance company and its policies, and how you should go about insuring your properties or your life. 

What are these legal bindings that "four- corners" insurance policies and businesses? We are going to learn about a few common ones that can enable us seal authentic insurance deals.

1.the insurance company is obligated(indemnity) to
compensate the insured in the case of certain losses only.

2. Ambiguity in Insurance policies should be sieved out in order to maintain  proper understanding and comprehensiveness of terms and conditions by the insured.

3 (Uberrima fides, Latin and legal term meaning "utmost good faith" ) the insured and
the insurer should be bounded by  good faith and honesty and
fairness. Insurance company or insurers , should fully disclose each content of a policy.

4. An insurance company(insurers) must  be able to sue those who are responsible for the losses of the insured. Insurers have legal rights and backings to carry out this act.

5. The insurance policy should be able to cover the proximate and dominant cause of loss of the insured individual.

In conclusion this five regulations noted, are actually primary details to ensure that you buy legitimate insurance policies, some insurance companies also individually own their own rules and principles including ethical conducts, but these 5 regulations are - generally what an authentic legitimate insurance policy and company should imbibe.

Apart from advertising and marketing insurance organizations and policies, campaigns , programs and seminars should be set-up to further educate and enlighten the public on the importance and benefits of getting insured, especially for those in under-developed and developing countries. Getting insured is as important as putting one's savings in the bank. 

No matter what part of the world especially in the United States or in developing countries like Nigeria, insuring what you value best is important for all of us. 

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