What is ‘insurance’ and how does it work?

Insurance is a social device for spreading the chance of financial loss.

In purchasing insurance, a person agrees to share a risk with a larger group of people. Doing this reduces the individual financial responsibility during a covered loss. In other words: a large, uncertain loss is traded in this way for a small, certain loss. This smaller certain loss is the premium.

Who can purchase insurance?

To be insurable, a risk must involve the possibility of loss only, and not gain. And the applicant must have a legitimate interest in the preservation of the life or property insured. This is the “Insurable Interest”.

How do insurance companies know what to charge?

The law of “Large Numbers” is one of the primary factors which allow insurance companies to predict the expected loss within a group. The basic principle of this law states: the larger the number of separate risks of a like nature combined into one group, the more predictable the number of future losses of that group within a given time period. The large the group, the more closely the predicted experience will approach the actual loss. Insurance companies can only predict the number of losses expected for a group, not for each individual.

Why should my premium go up if I have never had a claim?

Insurance companies collect premium to cover expenses, profits, and the cost of expected losses. The expected losses are based upon the past experience of the average risk. The fact that some people never experience a loss is immaterial, for they are balanced by other people who are involved with a loss.

What about life insurance?

Life insurance isn’t a topic you hope to have with old friends over coffee. It doesn’t feel like something you’d think about at the end of a lazy Sunday afternoon. In fact, you might not want to think about life insurance at all.

Think about life insurance, and you start thinking about what you’re insuring against. You start thinking about how things end, your own mortality, and all the traditions and values you hope to leave behind. The more you think about those, the more you think life insurance is a topic best left for another day.

But life insurance is really about the financial future of you and your family. It’s about creating stability, securing benefits, and protecting their opportunities. It’s about making sure that your family keeps their balance and normalcy in tough times.

But most importantly, it’s a safety net. With most families today needing two incomes to get by, loosing one of the breadwinners can cause enormous financial damage. And your family will have enough on their minds without sudden financial obligations to worry about.

The best way to use life insurance is to find the right policy for you. In a lifetime people can buy homes, graduate from school, get married, have children, change jobs, and retire. Each time your life changes, so does your life insurance needs. And since each policy on the market offers a different level of protection, one major life change can leave your coverage in doubt. Even good universal life insurance may not cover everything.

Does life insurance sound like a talk you should be having? All it takes is someone to walk you through your coverage to make that uncomfortable conversation seem optimistic.

Call me up today. I specialize in different types of polices, each tailored for the different stages of life. Chances are I have a policy that will work for you.

Hello,


When was the last time you thought about insurance? If you’re like most people, you last looked at a policy when you needed to change it. You may have wanted to satisfy the minimum requirements of a mortgage or vehicle loan. Your insurance rates may have changed and you were shopping for an economical solution.

But if you are like most people, you haven’t looked in-depth at the policy you have. You haven’t verified you have coverage on both your ‘Hard Assets’ and ‘Soft Assets’. Or you haven’t had someone walk you through your policy and explain the amounts you’re covered at. And if you’re unclear or even unsure about what you’re paying for, you may be shocked when the time comes to cash your policy in.

Randy Render has the knowledge, resources, and patience to clear up the confusion. He has been helping people with their insurance protection needs since 2002. Randy considers it his mission to protect the assets of his clients. He understands how devastating the loss of a life, a house, or an income can be. And he’s seen how those hard times can be worsened by gaps in needed coverage.

Better coverage through The Render Insurance Agency starts with a free, no-obligation discussion. In just 30 minutes, we will review your current policies, let you ask the tough questions, and give you perspective on what you’ve actually been paying for. We will explain the options available, and the consequences that occur with or without specific coverage options. Many of our clients have seen better coverage and a reduction in rates through our proven approach.

Shouldn’t your family’s assets be protected through an insurance agent that you “like, know and trust”?

Set up your appointment with Randy Render at 330-899-0499.

written by Leigh Adamkiewicz