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Insurance is a Product

August 6, 2009
Chris Garlasco, Owner & Managing Partner - Founders Insurance Group

Chris Garlasco, Owner & Managing Partner - Founders Insurance Group

Insurance is a product like any other product that we purchase. Somehow, we have reached a point of confusion in America that insurance is something other than a product. My favorite laundry detergent is designed to make my colors look brighter than the other brand, so that’s why I purchase it. My favorite bread is designed to add fiber to my diet so again, that’s why I purchase it. My favorite detergent or loaf of bread is not a right, it’s a product.

The detergent protects my colors, the bread protects my body, and the insurance helps me to pay for things that I cannot normally afford. That is what the insurance product is all about. Unfortunately, the cost to rebuild our house after a fire is more than most of us can shell out when that fire occurs. My wife’s most recent visit to the hospital was tens of thousands of dollars, more than most of us can afford out of pocket. If I have an employee injured at my place of business, it may be more than I can afford. I think that you get the point!

The insurance product simply protects us from events in our life that we otherwise cannot afford. If insurance didn’t exist, the cost to rebuild your house after a fire would still be the same. The cost for all of the exposures that I mentioned would not change either. This product that we call insurance helps to protect us from financial destruction yet many people these days are viewing insurance as something that it isn’t. Insurance is not the cost of the health care. Insurance is not the cost of the house fire. Insurance is not the cost of the car accident.

Instead of asking why our insurance costs so much, maybe we should be focusing on why all of the things that we need insurance for continue to rise. Focusing our attention on that will bring about true reform.

Have a great day!

Chris Garlasco

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