Spreading Risk Makes for Affordable Insurance

The insurance industry has been around for hundreds of years. Many moons ago, some forward thinker figured out that if the risk of loss was spread among many different people, that losses wouldn't be so devastating to one particular individual. If each individual paid in a small amount to a pool of money in exchange for protection from huge losses, then a certain level of assurance and certainty would be received by each individual. No single individual would be completely wiped out if a disaster occurred. Thus, the idea of insurance was born. Affordable insurance is available today due to this idea.

With insurance, individuals seeking coverage pay an annual premium to a third party, the insurance company in this case, in exchange for a promise of protection. Mathematical geniuses known as actuaries estimate the approximate cost that each person should chip in so that the company can afford to meet its obligations. Actuaries are able to make these calculations by estimating the anticipated losses based on historical experience. Investment experts take into account the investment returns that the insurance company can receive from holding millions of dollars of customer premium payments. Marketers can assess the number of customers that can be expected to do business with the company. Together, affordable insurance can be achieved when all of the elements work effectively.

Today's insurance companies operate in an environment rich in data. Property and casualty loss rates have been tracked for decades, so companies today can estimate with tremendous accuracy the likelihood of any given building to go up in flames. Companies understand what hazards can increase the probability that a loss will incur. Insurance companies are also heavily involved in risk management, which involves actively reducing the risk that losses may happen. Risk management can involve offering incentives for usage of smoke detectors and sprinkler systems, performing professional inspections of properties, and conducting educational sessions on how to prevent fires. On the life insurance side, actuaries can estimate with great certainty the lifespan of any given individual. Actuaries understand what health factors to look for that influence a person's number of years on the Earth. These health factors can include smoking, family history, health symptoms, and engaging in risky behavior such as motorcycle riding or certain water sports. The result of all of this knowledge is much cheaper life insurance. Insurance companies know how to earn just enough profit to keep the company earning an above average return, while also competing with other companies in terms of price. In the past 10 years due to the Internet, many traditional agents have been cut out of the picture, which has further reduced the cost of insurance. Agent commissions on insurance are typically extremely high, sometimes reaching as high as 50%. Companies like Geico allow consumers to communicate directly with the insurer, thus drastically reducing commission costs and therefore the total cost of insurance.

Affordable insurance is possible today more than ever. If you think you're paying too much for your insurance, you probably are. It's advisable to compare insurance costs and make the switch if a cheaper policy is available.

Bristy Voelkel has been an insurance specialist for the past 4 years. She has worked with several top insurance carriers, saving individuals shopping for free insurance quotes. Bristy is standing by waiting to assist you in comparing affordable insurance quotes & saving you hundreds. Get started today!

Business Insurance - Convictions, Criminal Records and Bankruptcy

When starting a new company or commercial venture, business insurance can be a source of confusion. There are various types available, and it is imperative that you obtain the most appropriate type in order to fully protect your company.

Getting the right type of business insurance at a good price can be a hurdle in itself, but what if you have a previous bankruptcy, IVA or criminal conviction to your name? In cases such as these, obtaining business insurance can suddenly become very difficult indeed, and it may seem that your attempts to make a new start in your life are hindered whichever way you turn.

If this sounds familiar, you are not alone. There are over 8 million ex-offenders and ex-bankrupts within the UK who are experiencing difficulty in obtaining basic insurance policies because of a prior bankruptcy or an existing criminal record. Unfortunately, many insurance companies refuse to provide cover once criminal records, convictions or bankruptcies are disclosed. It is therefore understandably tempting for applicants to fail to disclose these facts when applying for business insurance. However, this will result in your insurance policy becoming void, leaving you open to extreme financial damage in the unfortunate event of a claim against your business.

So what course of action can ex-offenders and ex-bankrupts take to ensure they are treated fairly and are eligible to receive the necessary insurance policies essential to making a fresh start?

Specialist insurance providers may hold the key.

Companies and brokers offering specialist insurance understand the problems faced by people with a previous conviction or bankruptcy. They are dedicated to finding competitive business insurance quotes, even upon disclosure of your criminal record or financial history. This will ensure that your business is paid in the event of a claim. There are many different types of business insurance available such as public liability insurance, professional indemnity insurance, employers liability insurance and product liability insurance, to name a few. Don't worry if you are unsure as to which type of business insurance your company needs. Your chosen specialist insurance company will be able to advise you and make sure you choose the most suitable cover for your line of business and get the best deal possible.

With a past conviction or bankruptcy, starting afresh may feel like a daunting task, especially if you have spent some time in prison. Knowing where or who to turn to in order to get the help you need can make all the difference and can give you the confidence you need to pick yourself up and get on with your life.

Remember, your past does not have to be a guide for your future.

Sale Insurance Services (SIS) are specialist insurance brokers, dedicated to providing competitive insurance quotes to people with criminal convictions and previous bankruptcies. SIS provide an honest and open service, the company's mission being to aid those who are being unfairly denied basic financial services, simply because of their past. SIS offer many types of insurance, including car, home and business insurance.