Why bother with it?
It brings peace of mind to the policyholder. In return for paying premiums the policyholder knows that, if the unexpected happens, financial compensation will be available.
What is it?
Well Put basically, insurance enables those who suffer a loss or accident to be compensated for the effects of their misfortune.
There are two different kinds of insurance - life insurance and general insurance. With life insurance you don't renew your policy each year. Instead, you agree to pay a fixed premium for a set number of years. In other words you enter a long-term commitment when you buy a life insurance policy.
What is the Difference?
General insurance pays out:
- if you are made redundent;
- if you are in ill health;
- if a car has an accident or is stolen;
- if a house catches fire or is burgled;
- if a holiday has to be cancelled;
- if someone is careless and damages other people's property;
Most life policies, on the other hand, pay out when an event happens;
- when someone dies;
- when someone survives beyond a specific date;
Anyone can buy life insurance but, of course, the premium will depend on your age, your health, and your occupation.
Husbands and wives can insure each other's lives. However, you cannot insure the lives of other people unless you have a financial involvement in their life.
'Quote from Winston Churchill'
“If I had my way I would write the word ‘Insure’ upon every door of every cottage and upon the blotting book of every public man, because I am convinced that with sacrifices which are inconceivably small, families and estates can be protected against catastrophes which would otherwise smash them up for ever. It is our duty to arrest the ghastly waste, not merely of human happiness, but of national health and strength, which follows when, through the death of the breadwinner, the frail boat in which the family are embarked, founders, and woman and children and estates are left to struggle in the dark waters of a friendless world.”