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5 Cautionary Tales on the Importance of Insurance

by girishsolanki20

Do you believe you don’t require insurance? Reconsider your position.

Although Halloween has passed us by, ghosts and goblins aren’t the only frightening creatures you may have seen recently. Financial blunders are far more prevalent — not to mention real — and may cause significant harm. Is there a huge financial emergency? Without insurance, being caught red-handed.

Insurance is costly, therefore many people choose to forego it totally. When people learn the actual cost of disregarding the warnings, remorse may swiftly set in. Instead of cutting corners on insurance, keep in mind that cutting corners in the near term typically means cutting corners in the long run.

According to a 2019 poll by HealthMarkets, 80% of uninsured respondents indicated they couldn’t afford emergency fees altogether or that paying them off would take at least six months. The greatest method to prevent debt, according to one of the key pillars of financial literacy, risk management, is to provide proper insurance coverage.

Still not persuaded? More than the boogeyman, these stunning anecdotes from financial professionals will terrify you.

However, some of them may be difficult to comprehend. Allow them to act as a cautionary tale.

No. 1: Medical expenses

El Mag Insurance’s owner, Eric Salinas

A young couple came into our office the first year I worked as a health insurance broker to enrol in a plan via the Healthcare Marketplace.

My mother, who is also a health insurance broker, advised to the young guy that he sign up for extra cancer insurance once they had registered. He was hesitant to go forward with it since he didn’t want to burden himself and his young family with further expenses.

He grudgingly agreed to sign up for it after coaxing from his wife, and he returned to our office four months later to speak with my mother about the supplemental coverage. He had recently been diagnosed with cancer, and the extra policy payment assisted him in covering the majority of the treatment expenditures. He was grateful to both my mother and his wife for proposing the policy and persuading him to accept it.

Even if you think you don’t need it, it’s crucial to have coverage. You never know what life may throw at you, and it’s important to be prepared for anything.

No. 2: Demise

Burial Insurance Pro agent Matt Schmidt

I chatted with a potential about getting life insurance around two years ago. He was roughly 25 years old and had recently married. We discussed the need of putting a policy in place to replace his income and pay off the family’s mortgage if he died. This person finally opted to postpone his or her application.

Three months later, I got an email from his wife, informing me that her husband had died. Unfortunately, she assumed he had a policy in place and inquired about how to submit a death claim to obtain the death benefit. I had to explain to her that her late spouse was not covered, and it was certainly the most difficult email I’d ever sent. I found out shortly after that she had to sell the house and eventually move in with her parents.

The moral of this storey is to never put off getting a life insurance policy if you need it.

No. 3: Expenses for a funeral

PinnacleQuote Life Insurance Specialists founder Daniel Ray

Death is one thing that is guaranteed. That is the only certainty in life, and it is unavoidable for everybody. In fact, if you carry life insurance, it is the only type of insurance that is assured to be utilised at some point.

I recall my grandparents passing away two years apart in the 1980s. I was seven years old at the time and nine years old at the time.

My mother worked three to four jobs as a single parent. Above all, I recall her having to cobble together enough money to bury her parents. I was able to witness her anguish and emotional weariness. If my grandparents had life insurance, [the predicament of a single mother needing to] come up with thousands of dollars may have been averted. My mother’s financial situation was disastrous, and it took years for her to recover.

Life insurance is necessary to safeguard your family from financial hardship.

No. 4: Automobile maintenance

The Zebra’s Ava Lynch is a qualified insurance agent and consumer expert.

I worked for a large insurance company as an insurance agent. Customers came from all around the United States. In order to get collision and comprehensive coverage for your car, you must undergo a CARCO inspection in several jurisdictions. A CARCO inspection is a thorough examination of your car, including mileage, physical condition, available options, and accessories. If you do not submit your CARCO inspection in a timely manner, your physical coverage may be revoked.

One of our clients failed to submit her CARCO inspection for her new Mercedes E-Class, and as a result, her coverage was cancelled. We sent her emails and letters inquiring about her coverage, but we never received a response. She backed into a support beam, causing her bumper to be damaged to the tune of thousands of dollars. She attempted to submit a claim, but it was refused because she lacked collision coverage. She was upset, but she had no choice but to pay for the damage herself because she hadn’t paid for her collision policy in months.

No. 5: Loss of property

Insurance Brokers West, Inc. president and CEO Daniel Groff

In 2017, a customer of mine lost their house in the Thomas Fire in Ventura, California. They have recently begun the process of rebuilding their house, and our insurance will cover the whole reconstruction and return them to normalcy. It included everything from the design to the building to the landscaping to the loss of usage.

Unfortunately, their next-door neighbour was insured — via a different agency and carrier — but the house was not correctly appraised for a total loss and was only covered for a little more than half of what our clients’ house was insured for. They received a cheque from their insurance company, but they are unable to reconstruct their house to its previous size and quality, or even purchase something that is even substantially equal to what they had.

Insurance may appear to be the cheapest option, but it is required to avoid a significant financial disaster. Get a comprehensive insurance plan that covers everything from medical emergencies to property damage, and be proactive in reducing financial risks.

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