http://www.cbc.ca/cp/Money/091009/J100902AU.html
Canadians forgetting to review insurance
Summary:
We are all living in the recent economic recession, and the article talks about Canadian forgetting to review and evaluate their insurances. The vice-president of the Investors Group Insurance suggested that people must evaluate their insurance needs and make their own plans that are suitable for them in the future. Different types of insurances are introduced throughout the article that shows different insurance plans that vary for different individuals.
Term insurance and permanent insurance are the two most common types of insurance offer by most insurance companies. Choosing the appropriate type of insurance that is suitable for you is a very important essential in the financial plans. Financial are also associated with their values that ranges from $10000 to $2 million.
Connection:
“Many Canadians assume they’re financial assets are their insurance.”
In this chapter, we learn about the accrual-based accounting, which states that costs can be classified as assets (balance sheet) and expenses (income statement). Every company needs to purchase their insurance for their long-life assets such as equipments, so we record the equipment in assets and the insurance in the expenses (as insurance expenses). However, if insurance was prepaid insurance then this would locate under assets. As fiscal periods pass by, the value of the prepaid insurance would decrease which equivalent to the increase of insurance expense. Besides these, taxes are also associated with the value of insurances. This could increase the tax expense that is being collected by tax authorities at the end of a fiscal period (result in an increase under expense). Each insurance package has different premiums that are integrated along with it. This requires funds from the shareholder’s of the company to provide funds to cover it up.
Reflection:
Insurances are infrastructures of life. Being able to manage our own financial plans, we must learn how to pick out a suitable package of insurance that could best benefit us. Living in a market downturn environment we must prepare ourselves for the future and investments in insurances are needed. Products are pricey at this time of the recession, and as the value of goods increase, the insurance company would also uses this chance to introduce better plans for people to advise. This helps people to increase their actuation to buy insurance. Car insurance, house insurance, and health insurance are the most common ones that people are using. We try to lower our lavish spending of money, so choosing a plan that has the right amount of coverage we need is important. Appreciating there are many financial experts who offers help to help us pick out our adequate insurance choices. Insurance plays very important roles in our everyday life, both mentally and substantially.
Sunday, October 11, 2009
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Insurance plays an important role in our lives. During the economy recession, people would choose to spend something that they need instead of something that can protect them in the future. For example, people would minimize the cost of car insurance to meet the government requirements. Most people would not buy additional insurance for their own car, like covering damage of own car and the protection against theft and vandalism. People choose to minimize their cost of car insurance to meet the lowest requirements because this can help save up lots of money. People won't be just saving in one area, they would found some other ways which they can minimize their daily expenses, like health and house insurances.
ReplyDeleteVanessa Lo
Insurance plays a vital role in our lives, yet, it is often one of the first things to go when one meets financial difficulties. With the current economic recessions, people are searching for ways to cut their expenses. One way is to lower their insurance costs by buying only necessary protection required by the government. These people appear to save money until something happens to their insured possessions. Minimal insurance will not cover the lost of a car or the damage of a house after a fire. While saving is good, we should not spare any money when it comes to choosing the right insurance. We buy insurance to protect ourselves and our families in the future. If uncertain, we should ask the advice of financial experts.
ReplyDeleteAs for businesses, insurance is even more important as accidents can occur without warning. It is essential for every business to buy insurance. Whether businesses buy insurance monthly or yearly, it doesn’t really matter, but we must acknowledge whether the insurance is prepaid or not in the various financial statements.
~ Li Ming
It is undeniable that insurance plays an important role in business or our daily lives. However, I think company needs to purchase the minimum-coverage insurance plan only. There are lots of ways for employees to avoid accident. For example, prohibit employees to smoke in the building will significantly reduce the chance of the building getting on fire. If everyone is more cautious, then the insurance expenses can be greatly reduced. Cutting expenses is essential for business as it always deducts net income. Raising employees’ awareness for potential hazard will be far more important than buying full-coverage insurance. Save and spend our money wisely will help us to stay away from financial crisis in economic downturns.
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