From the times of ancient history, until today, the concept of insurance has worked relatively well, despite the necessary "paper work," detail coordinating, departmental processing and occasional investigating. The "Code of Hammurabi," from Babylonian laws, dating back to 1700 BC, contained a credit insurance provision. Participants could exclude themselves from repayment of loans if they experienced personal misfortunes. Insurance flourished in the Roman Empire where citizens could purchase life insurance through the "Collegia Tenuiorum" for wage earners.
Even many of Rome's slaves were able to purchase insurance. The Collegia offered life insurance for soldiers serving in the military of the Roman Empire. Insurance was widely used to cover burial costs, to take care of disability expenses, and for providing pensions for senior citizens.
Presently, financial advisors generally recommend that heads of households or that those responsible for families be prudent and obtain life insurance to protect those who depend on them. Other types of widely used insurance in frequent use today include: health, homeowners, personal liability, automobile, professional liability, disability and long term care (LTC) insurance.
The types of insurance you will need to purchase remains one of your most important financial decisions because each individual is unique, special, and has priority concerns that may vary. But, the following four basic guidelines can be accurately applied to most people.
How Much Insurance Do You Need?
You need adequate insurance for the expenses that would deplete you financially, should you have to meet such costs! You need adequate insurance to prevent you from being destitute or bankrupt. You need adequate insurance to withstand any major expenses and continue living the lifestyle to which you are accustomed. Do not insure yourself against misfortunes that you can easily pay for yourself, should those misfortunes befall you.
What Type Of Insurance Policy Is Best For You?
You should cover as many contingencies as possible with a single policy. Reject policies with exclusions, as these exclude coverage in certain areas. It may just be one of those certain areas where you will eventually need coverage. A good rule of thumb is: The broader your policy the better.
Where Should You Purchase Your Insurance?
First, consider companies that are financially strong. Deal only with a qualified financial consultant. Examine your financial advisor as carefully as you examine the insurance policies that you consider. In some cases, it may be possible for you to save money if you purchase all of your insurance policies from the same agent.
Know In Advance How To Make A Claim!
Make certain you understand - in advance -- all of the requirements for making a claim should that become necessary. Is the claim procedure reasonable? Is the claim process structured to make it difficult for you? Do not purchase a policy with a company that appears to only be interested in getting your money and provides little or no advance information about your ability to make a claim.
Author Resource:-
Income recovery and asset protection specialist. I re-design portfolios so you can increase your monthly income, never run out of money during retirement, never lose any money and, make certain you significantly reduce your taxes. For More Info:www.PepperdineCPA.com
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