Insurance is a product that protects people from financial loss, It also helps people to protect their assets and investments.
It can be taken out to cover a wide range of risks, such as the risk of death, disability, theft, or damage to property.
Insurance is a necessary evil for the majority of people a such it plays an important part in our lives.
But, we often take it for granted and don’t think about the ugly truths behind it, therefore it is important for people to understand that there are some ugly truths about it that many people don’t know.
It’s something that you hope you never have to use, but it’s always there in case of an emergency. However,
1. People who need insurance the most are the ones who are least likely to get it:
People with lower incomes, people with less education, people in rural areas, and people in minority groups are all less likely to have insurance coverage than others.
2. Insurance companies make a profit off of your misfortune:
Insurance companies are in business to make money and they do that by charging more when you need more coverage or when you’re at higher risk for something bad happening. And they charge more when you need less coverage or when you’re at lower risk for something bad happening too! Basically, they want to make as much money
3. Insurance companies are not in the business of paying out claims:
Insurance companies are in the business of making money. That means they want to sell as few policies as possible and make as much money as possible off those policies. If they pay out a lot of claims, then they aren’t making any money off those policies, which means they’re not going to want to sell them anymore. This is why insurance companies will often try to avoid paying out claims or offer low settlements on them if they do have to pay
4. Insurance premiums are never fixed-
The premium amount changes with time as well as age, location, and other factors.
5. Insurance does not cover everything
You need to make sure that you know what your insurance policy covers before taking it out or renewing
As more people are being granted the privilege to purchase insurance, it’s important for them to know the five ugly truths about it.
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