Insurance – Financial Support to Replace Loss
Insurance is to cover you against any eventualities whether they are natural, financial or personal because as we all know life happens. And you can’t stop it from happening all you can really try to do is to be prepared when it does.
And it’s why people take out insurance the main way for businesses and individuals to reduce the financial impact of a risk occurring.
The early methods of insuring were practiced by Chinese traders as early as the 3rd millennia BC. To transfer or distribute risk these merchants travelling treacherous river rapids would cleverly distribute their wares across many vessels to spread the loss due to any single vessel’s capsizing.
These days you can insure just about anything, if you deem it a valuable asset to you. There are the conventional types of insurance such as home, car, medical and income protection insurance.
And the not so heard of pet insurance, which pays, partly or in total, for veterinary treatment of the insured person’s ill or injured pet. Some policies will pay out when the pet dies, or if the pet is lost or stolen.
And while people get life insurance some famous celebrities insure their body parts, such as model Heidi Klum who has insured her money makers, each of her legs for $2 million. While Jennifer Lopez who is famous for her curves as she is for her singing and acting has insured her famous derriere for $27 million and chart topping musician Rihanna has insured not her voice but rather her long legs for $1 million.
Did you know?
A South African soap maker insured Princess Diana for two months back in the early 1990s, but she probably never knew anything about it. The soap maker invested R400, 000.00 into an eight-week ad campaign that used a Diana look-alike. If anything would have happened to the real Diana, the company worried it would have to pull its ads and would lose its investment, and such risk was insured.