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Perspective – Insurance Part 1 : Why Insurance?

September, 2020

Once upon a time…a long time ago…there were people moving to new parts of our country to get some land they
could call their own, a new and better start and to raise their family. They started to build rural communities and
most often one of the first places to be constructed was their place of worship which brought them all together
weekly. They helped each other build homes, barns and clear the land. It was hard work but rewarding as they were
making a place for themselves and their children. It was not always easy! They suffered through many dangers and
from time to time there was tragedy. Someone was injured. A house or barn burned down. There were times when
death raised its untimely face. Yet with each difficulty, the community would come together to help a family recover
and move on with life. Everyone would contribute material, labour and when needed financial resources. Every
community knew that unfortunately, tragedy was going to be a constant, but they did not know when it would occur.
All wanted to help but sometimes when tragedy struck, times were tough. Funds and resources just were not
available. Then someone had the idea that if they all made regular contributions to a community fund, when there
was an unexpected and difficult situation, the needed money would already be available.

What a great idea!! It brought peace of mind to the whole community. This fund re-assured everyone that should
something unforeseen come along they would have the support of their community and they would have the funds
to help pick up the pieces. As the years went by, these community funds became a whole industry and many
professionals were trained to help families find the protection they needed. It became known as insurance. Yet the
general concept of a community pool of money remained. In a nutshell, premium payers who contributed on a
regular basis to insurance funds ensured financial support should there be a loss. At the same time, if other premium
payers experience tragedy, the fund would help provide for their needs.

Insurance now has decades of statistics based on experience that help calculate more accurate premiums anticipated
to cover payouts. Many forms of insurance policies have been developed including, life, income, automobile, house,
liability, critical illness, and others. Each type, including any additional riders available, is specifically designed to help
you cover the risks you may face. Not every citizen or country in the world is as fortunate as Canadians to have
access to the security of insurance products!

When you hear the word ‘insurance’, it may conjure up a variety of thoughts and emotions. If you have been on the
receiving end of the benefits you are, no doubt, very thankful for it. If you haven’t received any payout…good for
you…but you may wonder why you are contributing for something you have never received benefit for. Then there
are those who have bad memories due to high pressure insurance sales tactics.

The Insurance industries are highly regulated. Your Insurance Advisor is trained to consider your situation and your
needs. They have a good understanding of the insurance companies and products that will provide peace of mind for
you and your loved ones. They will put your interests first. If you sense that they are not…you need to find an
advisor who will! There are a lot of advisors who have built their client relationships on helping consumers meet
their insurance needs. Seek referrals from trusted friends or search online for Advisors who subject themselves to
the ethics and compliance demands of industry regulating organizations and associations.

Please do not let a negative experience deter the positive peace of mind that is available to you! It could be the next
best thing to “happily ever after!”