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Why Everyone Needs Insurance

Updated: Nov 5, 2022

home and auto insurance

Klondike Insurance Agencies Ltd. is a family owned and operated business that began in 1961 in Edmonton, we offer coverage for travel, property, auto, motorcycle and truck insurance, as well as life insurance and their various related products. Insurance, or protection against all the risks in life that can affect your sense of security, has become essential in our contemporary life but many people still wonder why they would need insurance.

To understand the why, it’s good to be with the how: Insurance is a way of managing life’s risks. When you buy insurance, you transfer the cost of a potential loss to the insurance company in exchange for a fee, known as the premium. Insurance companies invest the funds securely, so it can grow, and pay out when there’s a claim. In that process, there are a variety of ways that insurance through Klondike Insurance Agencies Ltd. can help you:

  • if you own a home, mortgage insurance ensures lenders know your home is protected;

  • driving, because few people could afford the repairs, health care costs, and legal expenses associated with collisions and injuries without coverage;

  • maintain your current standard of living if you become disabled or have a critical illness;

  • cover health care costs like prescription drugs, dental care, vision care, and other health-related items; and

  • provide for your family in the event of a death to name a few – and if you have the right insurance.

Investopedia, the largest financial education website in the world, in a January 2017 article suggests that “protecting your most important assets is an important step in creating a solid personal financial plan. The right insurance policies will go a long way toward helping you safeguard your earning power and your possessions.”

Investopedia lists five policies that you should not do without including:

  • Health Insurance is an increasing necessity with the soaring of medical care cost outside your Alberta Health Care Insurance Plan Coverage.

  • Long-Term Disability Insurance and the prospect of long-term disability is so frightening that some people simply choose to ignore it, but relying on hope to protect your future earning power is simply not a good idea. Look for a disability policy that provides enough coverage to enable you to continue your current lifestyle, even if you can no longer continue working.

  • Life Insurance protects the people that are financially dependent on you - parents, spouse, children or other loved ones – who would face financial hardship if you died. Purchase a policy that will replace that income in the event of your untimely demise, cover the cost of burial, and any unexpected burdens for your family.

  • Property insurance – homeowners, vacation, rental, or commercial properties – replacing any of these, and their contents is an expensive proposition. When shopping for a policy, look for one that covers replacement of the structure and the contents, in addition to the cost of living somewhere else while your home is repaired. Remember to factor in the cost of upgrades and special features, and that the policy covers the cost of any liability for injuries that might occur on your property.

  • If you drive, anywhere, automobile insurance is required by law. Accidents happen quickly and the results are often tragic, no automobile insurance or purchasing only the minimum required coverage saves you only a tiny amount of money, and puts everything else that you own at risk.

A little knowledge can make a big difference when it comes to buying the right insurance protection for you and your family. If you have questions about what insurance is right for your family, contact Klondike Insurance Agencies Ltd. in Edmonton at 780-439-0715 today.


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