Protect Your Assets–Insurance 101
Often a great deal of time and effort are spent on achieving our goals and visions. Sometimes, regardless, of how hard we work, and how well we plan, events occur that force us to take a detour on our vision quest. These detours can cost us a substantial amount of hard earned money, time, and energy, that may force us to either alter or cancel our vision quest.
One way we can protect ourselves from certain financial losses is to purchase insurance. When insurance is purchased the financial risks we may encounter as a result of such things as illness, death or damage to property is transferred to a company in exchange for a payment. The insurance company promises to payout an insurance claim when a predetermined event, such as a natural disaster, trip to the doctor, or a car accident occurs.
The two most basic forms of insurance are general and personal. General insurance, which insures such things as houses and other forms of property, promises to repay all or a portion of the cost to replace what has been lost as a result of fire, theft, or other loses. General insurance also helps offset the legal cost that could occur if legal action is taken against us.
Personal insurance, on the other hand, promises to replace the loss we may encounter when we become ill or injured and cannot work. Personal insurance covers such things as our life and health.