Insurance is a form of risk management in which the insured transfers the cost of potential loss to another entity in exchange for monetary compensation known as the premium. (For background reading, see The History Of Insurance In America. 

Insurance allows individuals, businesses and other entities to protect themselves against significant potential losses and financial hardship at a reasonably affordable rate. We say "significant" because if the potential loss is small, then it doesn't make sense to pay a premium to protect against the loss. After all, you would not pay a monthly premium to protect against a $50 loss because this would not be considered a financial hardship for most. 
Insurance is appropriate when you want to protect against a significant monetary loss. Take life insurance as an example. If you are the primary breadwinner in your home, the loss of income that your family would experience as a result of our premature death is considered a significant loss and hardship that you should protect them against. It would be very difficult for your family to replace your income, so the monthly premiums ensure that if you die, your income will be replaced by the insured amount. The same principle applies to many other forms of insurance. If the potential loss will have a detrimental effect on the person or entity, insurance makes sense.

Everyone that wants to protect themselves or someone else against financial hardship should consider insurance. This may include:

  • (Life Insurance) Protecting family after one's death from loss of income
  • (Life Insurance) Ensuring debt repayment after death
  • (Life Insurance) Covering contingent liabilities (The potential to have a debt in the future however the outcome is unknown at the present moment)
  • (Life Insurance) Putting a child through school
  • (Health Insurance) Protecting yourself against unforeseeable health expenses
  • (Property Insurance) Protecting your home against theft, fire, flood and other hazards
  • (Umbrella Insurance) Protecting yourself against lawsuits
  • (Disability Insurance) Protecting yourself in the event of disability
  • (Car Insurance) Protecting your car against theft or losses incurred because of accidents
  • And many more

Our team uses a mix of term and whole-life insurance to protect your family in the event any of the unforeseen happens.