Insurance is a means of guaranteeing your financial protection against various risks. There are different kinds of insurance to cover different circumstances. Policies are available for business purposes and for personal needs. Personal insurance is divided into:

• Property/Casualty Insurance - Provides protection for property like homes, cars and house-hold possessions, in addition to protection from liability as a result of their use.
• Life Insurance - Provides funds to a designated beneficiary or beneficiaries in the event of an insured’s death.
• Health Insurance - Pays for costs related to your health (e.g., doctor visits, hospital stays and diagnostic tests)
• Disability Insurance - a form of insurance that combines elements of life and health insurance, pays you for income lost due to a disabling injury or illness. Life, health and disability insurance are often provided through employers. Ask your employer about these coverages and check with your agent to make sure they meet your needs
• Government Benefits - As a working person, you pay for insurance programs run by the federal government. Social Security is a retirement and disability program in which almost all workers in the U.S. are required to participate. Medicare is the federally-sponsored health program for persons over 65 and individuals with disabilities. Medicaid is jointly funded by the states and the federal government to extend health coverage to poorer Americans. In addition, laws in most states require employers to carry workers compensation insurance so that workers injured or exposed to an illness on the job can receive compensation. Many states also require employers to pay into unemployment insurance, so if a worker is laid off, he or she will receive some money while seeking a new job.

All aspects of life involve risk, e.g., fire, theft, auto accidents, injury. Insurance provides a means of transferring the financial consequences of certain risks from yourself to the insurance company. It cannot eliminate the risk, e.g., fire. All it does is to transfer a portion of the financial consequences of that risk, i.e., if a fire occurs, insurance will help you recover from the financial loss.

The insurance company tries to insure enough property or automobiles or liability exposures to permit it to have a predictable frequency of losses. This allows the company to determine how much premium it will have to charge to cover expenses and anticipated losses. Insurance companies collect premiums from this large number of individuals and hope the number of claims is small enough to allow the company to make a profit. If insured individuals take the approach that they “deserve” to get back everything they pay in premiums, the company will quickly be bankrupt.

Insurance works only if the money paid in claims is given to the relatively few individuals who take a “big hit.” Most of us, fortunately, do not have many big hits, so most of us do not “profit” from the insurance we buy.

All aspects of life involve risk, e.g., fire, theft, auto accidents, injury. Insurance provides a means of transferring the financial consequences of certain risks from yourself to the insurance company. It cannot eliminate the risk, e.g., fire. All it does is to transfer a portion of the financial consequences of that risk, i.e., if a fire occurs, insurance will help you recover from the financial loss.

The insurance company tries to insure enough property or automobiles or liability exposures to permit it to have a predictable frequency of losses. This allows the company to determine how much premium it will have to charge to cover expenses and anticipated losses. Insurance companies collect premiums from this large number of individuals and hope the number of claims is small enough to allow the company to make a profit. If insured individuals take the approach that they “deserve” to get back everything they pay in premiums, the company will quickly be bankrupt.

Insurance works only if the money paid in claims is given to the relatively few individuals who take a “big hit.” Most of us, fortunately, do not have many big hits, so most of us do not “profit” from the insurance we buy.

We represent a variety of reputable and financially sound companies and brokers who are known for their claims service. They appoint us to represent them so we can provide our clients with the convenience of dealing with a single source for all their insurance needs.