Insurance is an idea that goes back to thousands of years before Christ. In early Chinese history, merchants would redistribute their wares on many vessels to avoid a huge loss if one vessel was capsized and lost. In ancient Greece and Roman times, ”benevolent societies”, were groups of nobles who would take care of members families if disaster would befall them. In 1680, “The Fire Office” was established to insure against deadly fires and loss of habitat in London. Benjamin Franklin helped to popularize the practice of insurance, especially fire insurance, during colonial times in Philadelphia. In the later 1800’s, Fr. McGivney founded the Knights of Columbus. This Catholic society for men was founded originally to take care of widows and orphans as a result of injuries and deaths caused on the docks of Bridgeport, Ct. Today it still functions as one of the most successful insurance companies in existence.
There are many types of insurance, but personal insurance on one’s life, home, health and work are the most common. Life Insurance is a good bet for those who wish to safeguard one’s family in the event of the death of the major provider. Term life insurance is inexpensive and serves the purpose. Whole Life Insurance is more of an investment strategy and many times is not the most optimum choice.
Property insurance prevents losses by theft, fire, burglary or any natural calamity. Most people must carry this insurance to finance loans which require this protection.
Health insurance consists of a package of various types of insurance related to health. Medical insurance to guard against major costs of surgery or doctors bills is quite common. Insurance for injuries is a bit less common and must be studied carefully to avoid expensive alternative insurance based on the possible pay-off.
Auto-insurance is required by law in most states and has become part of any car ownership expenses.
Travel insurance covers losses incurred while traveling or the cost of travel itself in case of an unavoidable delay or cancellation.
Credit insurance is required many times if a debtor is trying to take on a large loan and the bank requires safeguards.
Insurance is a major business that has a firm grasp on today’s economy. While insurance can be a major addition to financial security, it must be carefully examined as many insurance policies are expensive gambles. Like any business transaction, insurance must be studied carefully. Here is a complete personal financial planning guide which provides you links to various investment resources to study further.