Insurance: Pros and Cons

Corey —  May 23, 2012 — 6 Comments

In all walks of life, it pays to be safe. Doing your best to ensure that you don’t succumb to any illness, injury or any other form of harm is important, but if something bad were to happen to you, someone you love or a treasured possession, what do you do? Many people take out insurance policies to protect themselves financially against such a thing happening. However, for all that’s good about having insurance, there are a few flaws. Here are some of the pros and cons of insurance:

Pros:

  • Insurance can cover you for all sorts of things. You can get covered in the event of a car crash, against burglary, illness, the contents of your home being damaged or even if your pets become sick.
  • Some forms of insurance can be very cheap. For example, some insurers offer contents insurance worth up to £5,000 for less than £10 per month.
  • Being insured helps to reassure you that, if something bad were to happen, you’re going to get some sort of coverage, whether it’s in cash form or a replacement for the car or electrical item which has become damaged.

Cons:

  • Some insurance policies such as car insurance can run into thousands each year. This often makes motoring expensive for people who need to own a car for getting to work, doing the weekly shop and getting around.
  • Insurance payouts can sometimes be insufficient, especially when for something like an injury. This is where specialist law firms such as first4lawyers come in, as they sometimes win a lot of compensation for clients who make claims.
  • Sometimes it’s better not to have insurance, especially if it’s too expensive. Some policies don’t offer value for money, while insurers occasionally make it too complicated for customers to get the policy that’s right for them.

Corey

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Corey is currently pursuing a Master of Arts degree in religion. While he enjoys learning and writing about Christianity, another one of his new passions is writing about personal finances in order to help others make wise decisions with their money.

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