When should you purchase insurance? Should you wait for a disaster before you consider buying the insurance? Is it wise to make such an assumption, or does the insurance company have proof that failure is imminent?
Disaster is inevitable. There is no going around it. From the gout crisis to a hurricane, from floods to floods, a tornado to a tsunami – these are all inescapable disasters. They are unavoidable.
The fact of the matter is that the entire purpose of purchasing insurance is to make sure that you and your family do not become destitute and homeless when the time comes that you need them most. That’s what insurance is all about.
We all know if we are honest with ourselves that our human nature is to respond to crises by seeking refuge. An alcoholic might avoid alcoholics and drug addicts until an emergency has passed, then seek out his family and friends as though they were a dangerous predator.
A business person who experiences financial loss during a disaster will attempt to recover his damages, then immediately find a way to minimize the pain and suffering he has suffered, if possible. An employer who learns his corporation has lost all of its assets will attempt to reduce the loss, and then begin to look for alternative sources of income and job security.
The point is, when tragedy strikes, we tend to try to protect ourselves against the trauma, which can be a rational response, but certainly not the best one. If a man gets into a car accident in the middle of a typhoon and is killed, how will he feel if his funeral was held on the same day as the funeral of a pet killed by a stray dog? Of course, he would have been safer if he had stayed home in the middle of the night and took the dog out to a safe place, or if he had been taken care of while he was away.
It might be comforting to believe that it is impossible to predict the future, but it is, in fact, very possible. Even if a car accident is just a common problem, there are the human emotions of grief, anger, and fear, as well as the natural cycle of nature, in which the corpse of the drowned swimmer would eventually rise from the ocean floor.
When should you purchase insurance? Insurance companies will sell you a policy if, at some point, you do not buy the insurance to protect yourself. In other words, if you make yourself a legal ward of the bank and never go anywhere without your passport, then your bank will provide you with insurance to ensure that you cannot be arrested.
If you get divorced, and your wife decides to work for someone else, then your business partner would provide you with insurance to protect you from potential employers and mistresses. There are many cases where families find themselves without spouses, children, and then they end up living in shelters run by the government and some non-profit organizations.
The point is, we cannot always predict the future, but we can plan for the unexpected catastrophe. Just make sure that you take adequate time to research the policy that you are contemplating purchasing before you sign up for it.
It is also recommended that you research and compare the rates of several different insurance companies before you sign a contract with a particular one. Sometimes, there are discounts available when you examine different companies. If you wait too long to buy insurance, there is a chance that you will be paying a lot more than you needed to.
When disaster strikes, you will always be able to find the peace of mind that you need. You need to purchase insurance, but that does not mean that you should wait until you are going to be wiped out. Just buy the insurance so that you can be sure that the risk is a temporary one, and that you will be protected.