Insurance: The Necessary Evil

At one time or antoher we have all heard insurance being described as a necessary evil.  I will be honst with you, I agree; however, I would submit that it is more necessary than evil. 

Most of us go about our business day after day, month after month and year after year, paying our bills, insurance included and hating it each time we submit that check to the insurance company.  Most of us never see the other side of that money, when a claim is submitted, and for that, let us be thankful.

That wasn’t the case with my client and friend who is a high powered attorney.  The attorney had worked hard to build his own law firm and hire good employees to a point where he made a very substantial living.  He had a beautiful home, beautiful cars and even a vacation home.  One summer he turned the keys over to his son to take their ski boat out on the lake with a bunch of his friends.  Little did my friend know that the decision to give his son those keys could have cost him everything.

As they were out at the lake having a good time, in one small moment, a mistake was made and my friends son hit one of his friends who was in the water with the propeller of the boat and tore his leg and foot up.

Long story short, the insurance company settled with the family of the injured boy out of court for $750,000.  Thankfully for my friend and client, he was well insured and had a $1,000,000 liability umbrella protecting him and his assets.

My friend later said to me, “I will never complain about another insurance premium again.”

That is exactly what insurance is for.  Its not for the small stuff.  Its for the stuff that could ruin our lives and drastically alter our financial status.  So, although it is painful to write that check to the insurance company, next time you do it, maybe you will remember this story about my friend and it will help to take the edge off.

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