Meaning of Insurance According to Financial Experts

Want to know the meaning of insurance? Know how do financial experts defined insurance. In my previous topics I already mentioned the different types of insurance and how do insurance companies make money. Today, let us ask the experts what is insurance all about, its meaning, definition and its importance. I will also share my own experience in buying a life insurance.

I always tell my readers on not to skip buying an insurance before investing. Investing is risky but to lessen the risk, an investor must be skilled and he should understand how to manage the risk. Also, it is important to have protection for the capital investment and protection for the investor itself. Simple means, when risk occurred, the investment and the investor must have protection.

Meaning of Insurance According to Financial Experts

Let me cite some phrases from the book written by the financial experts such as Robert Kiyosaki, David King and Francisco J. Colayco.

Meaning of Insurance According to Francisco J. Colayco

Francisco J. Colayco is the author of the book “wealth within your reach” and “making your money work”. The book “wealth within your reach” is a best seller and 2004 national book awardee for business and economics category, while the book “making your money work” is also a best seller and national book awardee on 2005. In his book “wealth within your reach”, commandment #4: Protect your greatest income generating asset, YOURSELF, the insurance meaning was stated as;

“Your family depends on your ability to generate income. They will suffer a serious financial loss if you are no longer able to generate income for them. Therefore, it is important to cover yourself with insurance. Insurance is needed only when there is a possibility of unbearable financial loss.”

Reference: Wealth Within Your Reach by Francisco J Colayco. Anvil Publishing, Inc. (Mega Star, Inc.) published 2004, Mandaluyong City, Philippines, page 131 to 132

Meaning of Insurance According to David King

David King is the author of “you can be rich”. A practical guide on how to achieve financial freedom, and the secrets to have a happy and rich life. It teaches the different types of investments and he included insurance as an investment. In the book, the meaning of insurance was stated as;

“A funds generally range from lifetime security for you and your beneficiaries to immediate needs such as the education expenses of your children. A life insurance plan gives benefits to your family or another beneficiaries in case of untimely death.”

 Reference: You Can Be Rich by David King, Wordlink Marketing Corporation, 2002. Page 82

Meaning of Insurance According to Robert T. Kiyosaki

 Let us ask Robert Kiyosaki – the famous author of the book, rich dad ppor dad, cashflow quadrant and retire young retire rich.

“To drive a car, I must have insurance in case there is a crash. When I invest in real estate, I have insurance in case of fire or other losses.”

Reference: Cash Flow Quadrant by Robert T. Kiyosaki, Plata Publishing, LLC 4330 N. Civic Center Plaza, Suite 100, Scottsdale, AZ 85251, USA, firt publishing edition 2011, page 128

Image Credit: Graham Stanley via Flickr CC 2.0

Meaning of Insurance According to Dictionary

Let us now know the exact meaning or the definition of insurance in the dictionary. “Insurance is the practice by which an individual secures financial compensation for a specified loss of damage resulting from risk of any sort, by contract with a company to which he pays regular premiums, the profession of drawing up some contracts, the contract drawn up, the protection afforded by this, the premium demanded for such protection, the sum for which something is insured”.

Reference: The New Lexicon Webster’s Encyclopedic Dictionary of the English Language, Deluxe Edition

Now you know exactly the meaning of insurance and what exactly it is all about. It is for protection for your investment and for your loved ones. A protection for yourself, for your vehicle, for your home even for your business capital. Insurance will cover financial losses incurred during unexpected events.

Money Quote and Saying for the Day: 

Every dream in life has a financial price, just as every action you take and every decision you make has an economic consequence. To get where you want to go, you must figure out what these cost are and exactly how you will pay for them. – Georgette Mosbacher, CEO of Georgette Mosbacher Enterprises