-------------------------------
“Ask Jeff" is a weekly post made on the RyanAgency.com Blog.
Submit an insurance-related question to “Ask Jeff”.
-------------------------------
Which is Better - Over Insured or Under Insured?
December 5, 2019
Learn what you need to know to determine the right amount of insurance for you.
Neither is better.
By definition, one is under insured when exposed to risks which would create severe financial hardship. People in this position have chosen to assume risk rather than transfer it to an insurance company.
One who is over insured has more insurance than necessary to respond to risks that would not create a financial hardship.
It’s ironic.
Those who tend to be over insured, may have insurance on items or events for which they can financially afford. They tend to carry low deductibles, and insure personal property for which they otherwise have the means to replace. In the aggregate they spend way too much for protection they could finance themselves.
On the other hand, those who are under insured face exposure to loss of their accumulated assets and income following a catastrophe or unfortunate event. Potential bankruptcy and financial ruin are the result.
Balance is key.
Transfer the risk (insure) for events you can not afford to absorb financially, and self-insure (personally finance) the rest.
Putting this simple concept in place will help you save on your insurance program now and protect from a possible crippling financial loss later.
Would you like to discuss what are the right insurance coverages for you? We here for you. Give us at 607-324-7500, or request a quote online: https://www.ryanagency.com/request-a-quote
This article may have been originally published at Quora.com.
To see Jeff's Quora.com profile click here.
Part 7 – Designing a Value-Driven Insurance Plan
Part 6 – Advice, Advocacy, and Answers
Part 5 – Can Your Company Deliver?
Part 4 – Custom Coverage = Real Protection
Part 3: Coverage Limits - "The Ceiling You Don't Want to Collapse"
Part 2 – The Risks of Chasing Cheap
Part 1: What Are You Really Paying For?
Insurance fraud is a significant problem, exceeding $300 billion annually, with the Property and Casualty sector contributing nearly $50 billion to that total.
Living in New York, you might have a stack of insurance documents—auto, homeowners, health, or life insurance policies—filed away somewhere. But how long should you keep those documents, and specifically, what papers should you hold on to?
The year 1962 was marked by historic events—from the Cuban Missile Crisis to the passing of Marilyn Monroe. But while the world focused on these headlines, Lee A. Ryan was working alongside his brothers on my grandparents' farm when an unexpected opportunity arose—an invitation to join the insurance business. With no prior experience, no clients, and limited resources, my dad took a leap of faith and partnered with Nationwide Insurance to start an agency from scratch. Operating out of his home on Karr Valley Road in Almond, NY, he built his business one relationship at a time (some of whom are still clients!), laying the foundation for what would become a lasting legacy.
