Those are not words that are often uttered in the same breath. But maybe there is a connection. To see it, one has to look beyond the strict business of insurance.
As I have said so often before, insurance is, above and beyond all else, protection. Sure, there are many business uses for it, like to collateralize a loan or as between business partners to fund a buy-out arrangement.
And without question, insurance companies are businesses. They are either stock companies or mutual companies. A stock insurance company is owned by third-party, outside shareholders who share in its profits like any other corporation. They may or may not own insurance policies issued by the insurer. It may just be another investment for them.
A mutual insurance company is owned by its policyholders. One could argue that of the two, a mutual insurance company is prone to demonstrate more “compassion” for the simple reason that it is shareholder-owned. It therefore “works” for the insureds because they also own it. But that may be a stretch.
All insurers must be operated according to sound business principles, and claims paid or denied according to the terms of the insurance policies All are governed by state laws covering risk-bearing entities. Therefore, even mutual insurers can’t do things or pay claims “just to be nice.”
They have to obey the law and remain solvent.
Compassionate About Insurance
The compassion of which I speak is with a capital “C.” Webster defines compassion as meaning sympathetic consciousness of others’ distress together with a desire to alleviate it. That definition works for our analysis just fine. Think, for a minute, about insurance in that context. I have shared with you my health travails and the fact that I had to shift gears from being a trial lawyer as a result of them. For whatever the reason may be, I guess I had the forethought to buy life and disability insurance. I’m uninsurable for most purposes now.
- The life insurance was a no-brainer. It was a bet that I could not lose. The odds of dying were greatly in my favor, at least in the long term. Your’s too. It was a way of showing compassion to my family. The house could get paid off. Both my wife and I are now middle-aged and probably, once Alex is on his own and there occurs, sadly, some attrition of canines, a house of this size won’t be needed.
So, life insurance offers her some options that she might not otherwise have. The same goes for the insurance that she has on her life for me. And, if he continues to fly right, both can create something of a legacy for Alex. I can only hope that, despite the pain that I may have been over the years (bad jokes, stubborn {“no, I won’t need my glasses; followed quickly by, “may I borrow yours”} the life insurance evidences compassion.
- Don’t find excuses. If there is someone in your life who will need help when you are gone, do the compassionate thing. If you have the good fortune to outlive that person (there was probably a better way to say that), or circumstances change nothing is engraved in stone—beneficiaries can be changed, you can sell the policy in some cases, or you can allow it to lapse.
The brain tumor resulted in the need to shift gears big-time away from practicing law. It was the only way that I had ever earned a living. Whooda’ thunk that it would have come along? Not me; that happens to other people.
- Disability insurance. Compassion again. Please believe me that without it, we would have been SOL. So many lawyer ads on television make insurers out to be villains. If one is honest and forthcoming, my experience has been that they are, too. Big? Lots of money? Sure. Comprised of humans? Also, sure. There to give away money? No; that’s not compassion.
All that I can share with you is my experience. Yours may have been different, or it just may be a matter of perspective.
Please contact me if I can help you with a new perspective based upon your experience. I am Luke Brown, a retired insurance trial attorney in Tallahassee.