There are many types of insurance that are available nowadays. Most of the, however, are reduced to following ones: life, health, auto (vehicle), deposit, property, etc. insurances. (Kunreuther,1996, pp. 35-62 ) The choice you make about insuring something is doubtlessly an exceedingly important choice of your life – what does it depend on?
First off, it depends on the financial situation you find yourself in, possessions you have and risks that you might face. In the present assignment we are to analyze the financial situation of Sally Chan, a Senior Creative Director, living in Malaysia and on the basis of this analysis we are to come up with possible types of insurance that may help improve her position and turn out to be beneficial for her in the long run.
As we can see, her work involves very much traveling and that is why it seems that it is reasonable for her to get life insurance. Life insurance can be defined as a contact made between two parties, namely an insurer and an insurance company providing the service. An insurer pays an agreed fee for it but in exchange for the fact that in case anything happens to the insurer, the insurance company will provide a premium to the relatives of an insurer.
Actually, from our standpoint buttressed by the conclusions of many scientific researches (Baldwin, 2002), life insurance is absolutely necessary for everybody. Many people might be disinclined to think of their death and, indeed, there is no need to do so but benefits of life insurance are really clear: you will never have to worry about well-being of your loved ones since even if the tragedy happens to you (after all we are not hedged against tragedies), they will be taken care of at least financially. As one example we can set is of a woman that made a contract with an insurance company and, sadly, she got in an automobile crash and left two children. However, since she had the life insurance, her children were provided for and went on obtaining a high-standard education. (Arias, 2004, pp. 239-251). Actually, in case of Sally Chan, she has parents that are most likely dependent on her and so life insurance will mean that she will take off the psychological burden of worrying for them.
Secondly, we believe that Sally Chan should have a health insurance. Health insurance presupposes that you are secured against any risk of incurring expenses of medicine. Many countries, including the United States, provide health insurance benefits for their citizens. For example, in the United States there is so called Obama care and though many republicans rail against it, there is increasing evidence that to be insured is much better than not. For example, one woman testifies that she had unexpectedly developed several life-threatening health conditions at the age of 59 and only because of Obamacare she was provided with essential medications. (Lynch, 1992, pp. 354-359) However, in most cases health insurance is an individual choice and everybody should make it, including Sally Chan.
Lastly, we believe that Sally Chan should insure her property – much of which she has purchased in credit, and as a result can’t risk losing. Property insurance can be defined as insurance made on the behalf on insurer’s property. There are subtypes of property insurance such as vehicle insurance, house insurance and the like. As our data testify, the most precious possessions Sally Chan has are exactly a house and a car. It may be recommended to her to insure both of them even though she plans to sell her car in hope of purchasing a new one.
However, there is evidence that no matter how a careful driver you are, having a vehicle involves a certain risk of getting in a road accident, and to be on the safe side, Sally Chan had better hedged herself against any contingency. We ourselves have seen in real life car owners who have every reason to be most grateful for them having taking no chances and having insured their vehicles. In most cases property insurance companies are really helpful: they may even take on themselves court litigations expenses as was the case with many car owners. (Seaman & Kittredge, 1997, pp. 653-714)
Bibliography
Arias, Elizabeth. (2004). United States Life Tables, 2001. National Vital Statistics Reports 52 (14): 239-251
Baldwin, B. G. (2002). The new life insurance investment advisor, second edition. New York: McGraw Hill.
Kunreuther H. (1996). Mitigating Disaster Losses Through Insurance. Journal of Risk and Uncertainty: 35-62
Lynch, Margaret E. (1992) Health Insurance Terminology. Health Insurance Association of America: 354-359
Seaman, S. M.; Kittredge, C. (1997). Excess Liability Insurance: Law and Litigation. Tort & Insurance Law Journal 32 (3): 653–714.