{"id":315,"date":"2010-07-31T14:56:16","date_gmt":"2010-07-31T21:56:16","guid":{"rendered":"https:\/\/maysfinancial.local\/"},"modified":"2017-02-26T02:02:06","modified_gmt":"2017-02-26T02:02:06","slug":"introduction-insurance","status":"publish","type":"post","link":"https:\/\/maysfinancial.local\/articles\/introduction-insurance\/","title":{"rendered":"Introduction to Insurance"},"content":{"rendered":"

Insurance is a broad and complex topic, but in essence a simple concept.\u00a0 Insurance is about the management of risk.<\/span> When buying insurance, we’re paying to convert an uncertainty into a certainty. <\/span>The goal of insurance is to minimize the cost of risk.<\/span><\/p>\n

We cannot predict when adverse events will happen to us, how often they will happen to us, or their severity.\u00a0 The best we can do is to make sure that we’re able to manage these adverse events when they occur.\u00a0 The purpose is to ensure that adverse events do not cause us unmanageable financial burden.<\/span> Losing a house, a lawsuit, or dealing with high medical expenses without sufficient insurance can be financially devastating.<\/span> Insurance is a way of managing these and other risks.<\/p>\n

Risk is expensive.\u00a0 Insure against the bigger risks, not the smaller risks.\u00a0 The smaller risks are often not cost-effective to insure.\u00a0 The goal is to get the optimal (not maximum) amount of coverage, thus minimizing the cost of risk.<\/span> Depending on the type of insurance, the amount of coverage can be manipulated through maximum coverage amounts, optional features, coinsurance, deductibles, etc.\u00a0 Though features and options differ depending on which type of insurance you’re looking at, the same basic principles apply:\u00a0 What risks need to be managed?\u00a0 How much risk am I willing to accept?\u00a0 How should the remaining risk be managed? The optimal amount of coverage depends on your individual situation.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Insurance is a broad and complex topic, but in essence a simple concept.\u00a0 Insurance is about the management of risk. When buying insurance, we’re paying to convert an uncertainty into a certainty. The goal of insurance is to minimize the cost of risk.<\/p>\n","protected":false},"author":1,"featured_media":3990,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[2,22,8],"tags":[149],"_links":{"self":[{"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/posts\/315"}],"collection":[{"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/comments?post=315"}],"version-history":[{"count":0,"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/posts\/315\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/maysfinancial.local\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/media?parent=315"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/categories?post=315"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/tags?post=315"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}