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Chuks Udo Okonta
Though insurance helps to mitigate risks. Buying insurance too is a venture which should be done with care.
As you hope to mitigate your risks, never take the risk of putting all your insurances in a basket – that is buying your policies from one insurance company.
This is because, some policyholders have burnt their fingers when the insurance firm warehousing their policies ran into storm.
A product such as life insurance can be bought from many insurers, provided you can pay the premium. Therefore, it is necessary to spread your risks amongst strong and viable underwriters.
Dangers of having all insurances in one basket
* Failure of insurer
Many big insurance firms failed in the past due to large claims payment; bad management; bad investments amongst other challenges.
Many will still fail, therefore, spread your risks to secure your investments.
* Limited opportunities
Insurance companies offer different incentives on their products. Warehousing your insurances in one firm would deprive you benefits offered by other insurers.
One unique thing brokers do is spread their clients risks. Ensure you buy your insurance needs through a broker who would help you spread your risks.
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