Insurance - What is the purpose?

Too often we blindly trust, judge, make decisions and buy insurance without thinking about what we actually want. We need to start thinking about why we actually get insurance in the first place.

Although I have been working in the insurance industry for a decade now, prior to this, in my previous life as a teacher I had been dutifully paying my multiple insurance policies without any thought as to why I actually did. I didn't even take a great interest in to the type of cover I had.

Here are some of the main reasons that people have insurance.

  1. Satisfy your lenders - Whether it is for your home, car, or even the new TV we are part of a lending society. Most lenders want to know that what they are lending you has some kind of protection. Just because you might be required to have Insurance doesn't mean you should accept the first option that comes along. Policies aren’t all the same and it’s worth taking some time to think about what you want your insurance to do for you.
  2. Protect your liabilities - Sadly there may come a time when we damage someone else's property accidentally or through no fault of our own. We could leave the handbrake off and the car rolls into someone else's vehicle. That tree we meant to get around to cutting down at the back of the yard could fall over and damage the neighbours home or fence. The truth is you can be held liable for that damage. Most insurance policies will mean that although it’s an unusual event the cost won't have to come out of your pocket.
  3. Protect you from loss - Nobody likes to lose, especially me. Whether it is on the sports field, in the boardroom, or one of your possessions. Insurance provides you with a way to replace the things you could lose unexpectedly meaning that you get to carry on without having to miss out on what you previously had.

Your reasons for getting insurance in the first place will determine which policy will be best for you. Your broker has knowledge of all the policies available and can help you understand the ins and outs to make sure what you get will match it’s purpose.


Allan Henderson

About the Author

Name: Allan Henderson        

I’m the Leader - Business Development & Sales for Rothbury’s Wellington branch. I have over 20 years experience in the insurance industry and get a kick out of finding insurance solutions for my clients.

I enjoy leading and…
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I’m the Leader - Business Development & Sales for Rothbury’s Wellington branch. I have over 20 years experience in the insurance industry and get a kick out of finding insurance solutions for my clients.

I enjoy leading and developing people (including my 3 children although they may not appreciate my leadership skills at times – or ever for that matter) and am part of a really experienced team who have a lot of fun here in Wellington.

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Disclaimer: The articles published on this blog are designed to provide general information and do not take into account any individual’s particular circumstances.  We recommend that you obtain professional advice on your requirements before making any decision about a financial product.  

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