What Is It That Insurance Is Supposed To Do For You?

The answer to this question is simple. It is supposed to make you whole. Whole means, making sure that whatever it is that you are insuring is put back to the way that it was prior to a loss.

It seems that it has become a part of our nature to try to get more out of a claim than what the policy intended to cover. If you own a $500k home and it burns down, don’t expect to get back a $2MM home. Or if your Chevrolet gets totaled, don’t expect for it to be replaced by a Rolls Royce.

Life Insurance works the same way, if you earn $50k a year don’t expect for a company to write a $10MM policy on you. As an individual you may be priceless, but the truth is that when purchasing life insurance the objective is for your family to be financially taken care of at your current income level, for however long it is needed. When we pass we all want to leave our family in the lap of luxury, but that’s not the way it works. There is a formula for this. Ask your Financial Advisor.

Insurance is a long term investment, purchased for an unforeseen circumstance called a peril. Expecting to collect on this investment would mean that your home, auto, business or life has suffered a loss. Some may be irreplaceable, especially if we are speaking about someone’s life. Making you or your business whole should be your first priority when investing in an insurance product. That is why it is so important that you make sure that you are not underinsured.

And equally important is that your insurance agent goes beyond insurance and becomes your Trusted Risk Advisor.