If you own a house you need to have insurance. At first you needed to have insurance when the house was mortgaged for the banks insisted you have insurance. For many banks. they will happily give you a quote from the bank owned insurance company and a possible discount for you. No matter who you take the insurance from, you need the insurance. After you have paid the mortgage off, the house is yours, now you need the insurance to protect against possible losses which hopefully never come. Although one never knows when a fire will happen or whatever you are covered for, although as a consumer you know the higher the deductible (the more you pay before you claim) the lower the insurance rate, but you still need insurance. Whether you pay the insurance in full at once or through semi-annual payments or monthly, the insurance payment is one of many payments you will need to regularly pay.

Linking to dividend paying stocks, one of the reasons why insurance companies are a good investment is people need to pay their insurance. The insurance company then invests the premium and the less it pays out, the more money it makes. The insurance company has to pay something or there should be plenty of lawsuits from consumers wanting their money. The insurance companies receive many regular payments, similar to dividends which for profitable companies should be regular payments to the shareholders. You need to have insurance, having a regular payment to offset the ongoing costs of life is a good thing.

There are more questions than answers, till the next time – to raising questions.