Definition: transfer & management of some risk that you hope you never need much of but desire the most complete coverage possible.
Whether it's Accidental death and dismemberment, Dental, Disability, Burial, Total permanent disability, Income protection, Long term care, Vision, Permanent life, Term life, Universal life, Variable universal life, Whole life, Bond, Errors and omissions, Fidelity, Professional indemnity, Professional liability, Protection and indemnity, Pie, Contents, Earthquake, Flood, Home, Landlords, Renters, Mortgage, Property, Casualty, Crime, Crop, Group, Liability, Marine, No-fault, Pet, Phone, Reinsurance, Terrorism, Vehicle, Wage, Weather, or Workers' compensation. This is by no means a comprehensive list - given enough of a premium you can insure just about anything, even rocket launches & taste buds on best pie eater in the NW.
Whether all or a portion is paid by you, your employer, or some other party (government); the bet is this -you'll never get back what you put into it. With a family of 5 (with three kids 4 & under) and all the premiums we pay in part or in full for health (medical, dental & vision), car(s), house(s), and an umbrella liability policy for good measure, plus the deductible on each (individual & family); we're out a ton of money each year verses what we get back (even with my wife's knee & foot surgeries).
Why don't deductibles roll over from year-to-year anyway? If I get injured on a JAN 2nd training ride I have to start my yearly deductible all over again...why can't it be a rolling 12-month period?
And it's not life insurance - it's death insurance (or end of life insurance)! You pay them in a bet that you're eventually going to lose - unless its term, then they'll win almost every time.
Issuing insurance is a booming business, and all those tall stylish monoliths worldwide are bought by ever increasing premiums while they process fewer claims.
So while I view insurance as a necessary evil for catastrophic situations beyond our means, I am less than assured by the dubious practices they employ to ensure their success.
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Forgot to Renew Your E & O? You Have Activated a Devastating, Financial 'Time-Bomb'
That's right!
...and failure to take action now could be detrimental to your financial well being.
Read this article that explains why allowing a lapse of an E&O insurance policy, or coverage gap, is like pressing the button on a financial detonator! http://eoforless.com/eo_timebomb
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