The Insurance Industry's Dirty Little Secret That Has Cost Many So Much Pain
The Insurance Industry's Dirty Little Secret That Has Cost Many So Much Pain
By Chimezirim Chinecherem Odimba
The law in most places makes it mandatory that you have auto insurance. You can't get a mortgage loan without a homeowners' insurance policy. Almost everyone out there appreciates the importance of a importance of health insurance. However, you are not told that you've omitted the most important of them all. So what's it? Read on to find out more...
The necessity of an insurance policy is determined by the level of risk you are exposed to if you do NOT have it. So if the likelihood that you'll never get sick is 100% you should NOT have health insurance (However, we all know that this is NOT the case). Therefore, to make this discourse more practical, we'll look at the odds that you'll really need the various policies you have...
The odds that your home will be destroyed by a fire, flood or act of God is 1:1200. The odds that your vehicle will be totaled are 5:1200. The odds that you'll require hospitalization are 105:1200. However, the odds that you'll require long term care at some point in your life are 720:1200. The only policy that has a 1:1 ratio is life insurance (excluding term life policies) since you'll die some day.
But check and ask around. It seems that the popularity of policies is inversely proportional to their necessity. This could only mean one thing: The policies that are most publicized are those that have the highest return on investment for insurers.
Otherwise, long term care insurance should be the most popular policy (Or second only to life insurance for those who want to protect those who survive them) and closely followed by health insurance. However, we all know that this is NOT the case.
Long term care is expensive. Therefore, most people simply live in denial about their needing it at some point in their lives (Especially as they grow old and become frail). But who's fooling who?
Unless you have very few assets and are poor enough to qualify for Medicaid, then the odds that you'll need long term care is simply too high to ignore. Would you take the same chances if your home is exposed to such a level of risk? But I'm told that our lives are worth a lot more than anything we own -- Yes, including our homes.
The choice is yours. But if you appreciate you really need it but are deterred by the cost, here's what you can do to pay less...
1. Buy it as soon as possible. Younger people pay far less.
2. Make sure you are not overweight when you apply.
3. Quit smoking and ensure you're nicotine free before applying.
4. Avoid all other things that increase the likelihood that you'll need long term care sooner.
5. Do thorough comparison shopping. Get and compare many quotes. You could save hundreds or even up to a thousand dollars by doing this.
Here are great pages for insurance quotes...
InsureMe Insurance Quotes
Insurance Quotes
Chimezirim Odimba writes on insurance.
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