When you drop a coin into a lottery machine, you know that your chances of winning are pretty slim. But risking a coin or perhaps much more than that, may be worth it if the potential payoff is great enough. Insurance is similar to that. You pay premiums not because you expect to get injured today or get into a car accident next week, or lose your home in a fire next month, but because the peace of mind and the financial protection we provide are worth it.
By paying premium for insurance, you transfer the cost of the huge potential loss to the insurance company. Premium is the preferred small risk to the huge risk for example loss by fire. To induce people to take up insurance, the riskless alternative ought to be fair. We work tirelessly to bring people with similar risks together in what is called pooling and invest the proceeds in funds so that in the event a member suffers loss, they are compensated adequately.
Explore your insurance options and try to quantify your potential losses. It may be best to sit down with our professionals to figure out what types of insurance policies suits you best and how much coverage you actually need.