Insurance: What is it?

Insurance: What is it?

• Insurance
• September 09, 2021

Insurance: What is it?

You deserve to have peace of mind when it comes to insurance, but it shouldn't come at a high cost.

It is important to understand that there are many different types of insurance and depending on your requirements, your advisor will customize insurance to your specific needs.

To minimize cost, most people often undervalue what they need, or put off purchasing insurance altogether. Sometimes, we believe that the advisor is often overselling us. It is important to understand that it is an advisor's responsibility to put ALL the options in front of you, for you to make an informed decision. A good advisor will listen to your needs and budget and help you plan how and when to add more insurance. Insurance isn’t something to overlook, no one wants to plan on getting sick or passing away. It is there to give you peace of mind and security, that your loved ones will be taken care of if you are no longer able to.

People often ask what insurance is and why do I need this?

Simply put, insurance is an agreement between you and an insurer that will cover  costs that may be associated with illness, death, damages, wealth or loss in exchange for an annual  premium usually paid in monthly installments.  

There are some scenarios where it’s beneficial to have insurance, many where it’s vital and some instances where it’s mandatory. Ultimately, you pay an insurance premium as a way to manage risk. You can’t control what happens in your life, but you can certainly help protect yourself or your loved ones. The type of insurance you need will depend on your current lifestyle. This could include where you live, where you work, and what you own. You should have insurance to protect all your assets (including your life).

How do I get insurance?  

Most people believe they know what they need in insurance and will search for what they believe they need. Ideally, you should meet with an advisor to determine what you actually need. There are different types of advisors who specialize in one or multiple areas of insurance.

Financial advisor  

A financial advisor’s role is to take a holistic view of your finances, your lifestyle, and your goals and recommend how to best manage and plan. Because of their generalized focus, they do know about insurance products and can make recommendations for policies and coverage that make the most sense for you.

Insurance broker  

An insurance broker’s role is to work with you to review your life situation and determine which types and levels of insurance will best meet your needs. An Insurance broker usually has several companies they work with, allowing them to find the best fit for you.

Insurance agent  

An insurance agent works for a specific company and is familiar with all the products and services that their company offers. They will be able to guide you towards the services and products that will best benefit you and your insurance needs with that particular company.