Yeah, yeah. There are more than 4 letters in the word "insurance" but when you think about it, think really hard, 4 letter words come to mind. Lets face it. If we didn’t have to have insurance, we wouldn’t pay for it. Accidents, fire, disasters don’t happen to us. They happen to other people. Its on the news. Its in the newspapers. Its on the internet. It isn’t here. Not in your life.
Insurance isn’t anything more than legalized gambling. The insurance people know that something will happen to someone sometime. That’s because they use something called an "actuarial table". This is a mathematical formula that shows how often an accident or a disaster happens. And, for what its worth, it shows how often something can happen to you, based on how you live your life.
For instance, if you drive more than 20 miles to work, you have a higher chance of being involved in a motor vehicle accident than someone who lives less than 20 miles to work. Another example is if your parents lived to be older than 75, the chances are, you’ll live to be older than 75. These factors affect how much you have to pay for automotive insurance and life insurance.
But, insurance is one of those "facts of life". We have to have it even though the odds are we may not ever need it. You drive safe. You are young and healthy. Your home is in a good place. You work hard and are a productive member of society. Why should you take dollars out of your pocket to pay for something as aggravating as auto insurance, homeowners insurance and life insurance?
The reason is: stuff happens. It happens to us, to our homes and to our lives whether we like it or not. That’s why insurance is a good thing, When you are in an accident, a fire happens or even something as fun as a tornado, insurance can help us recover. It may be a pain to deal with the agents and dealing with claims but when that check comes to help pay for car repairs or to help you fix your home, its all worth it. Insurance may not cover everything but it certainly helps to cover the biggest part of it.
You may not like paying for insurance but for cars, the law says we have to have it (in most states.). If you’re buying a home, part of the mortgage agreement says you have to have homeowners. In today’s world, insurance is one of those necessary evils that we all have to deal with. However, having insurance can be the best thing we’ve ever done when worse comes to worst. There are good things and bad things about having to cope with the insurance industry, but on the whole, having insurance means you’re doing everything you can to protect your future. That in and of itself is worth the trouble.