Black Stallion Insurance Brokerage

One of the things I love that is different about life insurance than health insurance or property and casualty insurance, is that they are indemnity contracts and life insurance contracts are aleatory contracts.

Indemnity: This means you are not allowed to gain or profit from a loss. This means if it costs $4444.44 to repair your car, $4444.44 is what pay, minus your deductible. If the medical bill is $962.52, $962.52 minus your copay is what they pay. If the replacement cost of your burnt down house is $355, 622, that is exactly what they pay, minus your deductible.

Aleatory: Aleatory contracts are based on the party being obligated, as long as certain events happen. Meaning, the insurance company will pay out a death benefit, as long as the premiums are paid and the insured dies. Aleatory contracts are also by nature, an unequal exchange of value. Meaning, you will ALWAYS get much more in cash value or death benefit, than you pay in premium. Which seems more beneficial to the consumer? Like share, and follow for more.

Is the current cost of living affecting your retirement strategy?