When Insurance Doesn’t Insure You

I wish I could say the final week of summer was slow and uneventful in our house… but that was not the case.

Just a few days ago, my daughter and I were involved in a hit-and-run at the end of our driveway. She was making a right turn in when a large pickup truck decided to pass the SUV directly behind us and crashed straight into my daughter’s rear bumper.

The impact was strong enough that the SUV owner pulled over to help. The truck? Gone. It sped off before any of us could get a clear description, let alone a license plate.

Despite the blaring horn as he passed, I’ve chosen to believe the driver may have been dealing with an emergency. You never really know what someone else is carrying, right?

Thankfully, no one was hurt. But what followed was a damaged vehicle, a cracked bumper, and countless hours over the next 24 hours spent talking to law enforcement and insurance.

And the most frustrating part?

Nothing happened.

Insurance wouldn’t cover the damage because my daughter didn’t have comprehensive coverage. Both the officer and the insurance company confirmed that even if she had been covered, she would still be responsible for the deductible, and her premiums would likely skyrocket afterward.

It’s no wonder people think insurance is a scam.

What Insurance Is (and Isn’t)

The truth is, while insurance is required to legally drive on public roads, very few people truly understand what is and isn’t covered.

This incident couldn’t have been avoided, but if you knew parking lot damage or hit-and-run incidents wouldn’t be covered, I bet you’d choose where you park much more carefully.

All insurance is not created equal.

A basic auto insurance policy with minimal coverage exists primarily to repair someone else’s vehicle - if the accident was your fault. If you never make a claim, those payments are gone forever. And if you do make a claim, you may still pay for it later through higher premiums.

Home insurance and term life insurance operate in much the same way. You pay for temporary coverage, and if you don’t make a claim during that time, the premium disappears into the void. Claims are often denied not because people did something wrong, but because they didn’t fully understand the limitations of the policy.

These types of insurance absolutely serve a purpose and can offer peace of mind. Over time though, they are far more likely to drain your bank account than pay you back.

Insurance That Actually Pays Out

Whole life insurance works very differently.

Unlike term insurance, whole life is a private contract that is guaranteed to pay out by age 101 in Canada (121 in the U.S.). In other words, if you live to 101, the insurance company is legally obligated to send you a cheque for the full death benefit.

When designed properly, it’s actually impossible to pay in more than will eventually be paid out.

Because it is guaranteed, whole life insurance becomes an appreciating asset. It builds equity every single day in the form of cash surrender value; money you can leverage to self-finance major purchases, investments, debt elimination, or unexpected opportunities.

This is not new.

The ultra-wealthy have used this strategy for over 100 years to protect and grow their wealth. Unfortunately, most people, and even many advisors assume this kind of system is only available to those with seven-figure net worths.

That simply isn’t true.

I’ve learned how to structure these systems so they work for regular families, not just the elite.

My clients are using their policies to eliminate high-interest debt, pay off mortgages decades earlier, and save hundreds of thousands of dollars in taxes - while building generational wealth at the same time.

Ready to Break the Cycle?

If you’re tired of feeling stuck in a financial system that seems designed to work against you, there is another way.

If you’re curious about how to take control of your money, protect your family, and build true financial independence for yourself and future generations, I’d love to help.

Book your complimentary discovery call and learn how to escape the financial trap. I’ll guide you every step of the way.