Insurance can be a confusing term for non-finance wizards and finance is a puzzle in itself. The modern world runs on making money. After all, who does not want an income source? We all want to flaunt our earnings, spend them by having a good lifestyle or by buying that fancy car which was just advertised on the television. However, many of us don’t know what to do with our hard earned money. Spending money by buying life luxuries is one story, but we cannot forget that we all want to have a secure future, and that is why we insure.
Insurance = Security
The word for security is where insurance comes in. A simple term which explains insurance is “sharing of risks”. Think of it as a new restaurant business. If the restaurant requires one million dollars to get started, and if that same business fails with a single owner, the entire financial loss of one million dollars is endured by that one person. However, in case of multiple owners (i.e. one million dollars split across 5 investors), each investor bears a risk and misfortunes that could be crushing on one can be made bearable for all.
Technically the basic function of insurance is to transfer and share the risk. The larger losses of a few are distributed through an insurer to a large number of premium payers where each pays a relatively small amount as compared to the total loss.
When all is said and done, choosing the right type of insurance can be a Herculean task. Especially, when the market has multiple providers: each provider having different schemes and timelines. We at InsuredMine are excited to secure your earnings by providing a common platform with all insurance policies under one roof for FREE. Your analysis gets easier and you can plan your insurance spending better!