Why Do You Need Insurance and Why do We Need InsuranceWhy Do You Need Insurance
and Why do We Need Insurance

Why Do you need Insurance

Insurance is a way of you managing your risks. When you buy insurance, you transfer the cost of a potential loss to the insurance company in exchange for a fee, known as the premium. Insurance companies invest the funds securely, so it can grow, and pay out when there’s a claim.

Insurance helps you: Own a home, because mortgage lenders need to know your home is protected. It covers you for repairs and replacement of any damage that’s covered in your policy. It provides protection against theft, damage from perils like fire and water, and financial responsibility that could result from a visitor or guest being accidentally injured on your property.

Drive vehicles, because few people could afford the repairs, health care costs and legal expenses associated with collisions and injuries without coverage. Auto insurance is also a legal requirement.

Maintain your current standard of living if you become disabled or have a critical illness. It covers your day-to-day costs and larger expenses like your mortgage while you focus on your health and recovery.

Cover health care costs like prescription drugs, dental care, vision care and other health-related items.
Provide for your family in the event of a death. There are life insurance options for short and long-term needs that protect your family’s home, mortgage, lifestyle and the cost of post-secondary education for children.

Run a small business or family farm by managing the risks of ownership. Get owner, business and employee coverage, and provide group benefits and retirement plans for employees.

Take vacations without worrying about flight cancellations or emergency medical expenses abroad.
Take the time to review your policies and contact one of our helpful Financial Advisors to answer your questions or get advice. A little knowledge can make a big difference when it comes to buying the right insurance to help protect what matters most for you and your family.

Why do we need Insurance

  • Insurance is a mechanism for protecting people against losses, damage, injuries, and costs associated with unforeseen events. Events that arises unexpectedly.
  • Those who are likely to suffer from such loss buy insurance by paying premiums, which are used to pay losses that may arise.
  • Insured losses may arise through natural events, earthquakes, floods, hurricanes, high winds and other natural causes.
  • Businesses & Individuals buy insurance to protect themselves against the uncertainties that cause financial as well as personal loss.
  • In the event of losses covered by an insurance policy, the insurance carrier will pay for losses in accordance with the terms of the policy. A policy specifically describes the losses that are covered, certain exclusions for which coverage will not be provided, and the limits of coverage. 

Insurance Policy Terms:

  1. Policy Number – needed whenever you make a changes to your policy or report claims
  2. Effective & Expiry Date – When it starts and when it ends.
  3. Underwritten by – Says “insurer” or “insurance company”.
  4. Insured – your name on the contract of insurance
  5. Additional named insured – the name of a co-owner of a vehicle or property; they have the same rights as you.
  6. Legal liability – you’ll usually see a coverage limit of $1 million or $2 million; it provides coverage for amounts you're legally responsible for if you unintentionally cause bodily injury or property damage to others.
  7. Premium – the cost of your insurance policy.
  8. Endorsement – Also sometimes called a rider, an endorsement is an addition or change to an insurance policy. Endorsements can add, delete, exclude or make other changes to the coverage in the base contract.
  9. Insured item – the thing that’s covered by an insurance policy.
  10. Scheduled personal articles – specific insured items you’ve told us about that are insured for a higher limit than the base policy contains