I never thought it would happen to me. This seems to be the generic response when traumatic things happen, but it explains exactly how I felt when I found out last semester that my house had been robbed.
I have lived in the same house and the same neighborhood all my life, so it came as a little bit of a shock to find out my home was not as safe as I thought.
When I finally came home, I kept wondering what they took. It ended up being two flat-screen TVs, most of my mom’s jewelry and some picture frames.
Originally, I had no idea how I was going to get over this, and, while at first I felt mentally scarred and even violated, I was able to move on with my life. The police even ended up finding the criminal almost two months later.
However, there is still one aspect I will never get over. When my parents went to file a claim on the stolen property, our insurance told us we would be dropped — as if things were not bad enough already.
Even though my parents had never filed a claim with this company, they still threatened to terminate our insurance.
The last time my parents filed a claim was due to a wind storm that caused damage to our roof. The company at the time dropped us right after.
Even my boyfriend had to switch insurance companies after they told him he would be dropped for a case of reckless driving, which happened five years ago. They just decided to tell him now.
How is it that people pay into something with the idea of protecting them in the future, only to have it fail them when serious situations arise?
The answer is a Ponzi scheme, and that is exactly what insurance companies have turned into now.
In essence, a Ponzi scheme is when investors pay into something with the idea that those funds will be returned to them, whether by themselves or other investors. However, it turns out to be a scam separating investors from their money.
With insurance companies, we as insurers pay into something in return for insurance due to some event. It seems what happens instead is, once a claim is taken out, they give the money but drop customers instantly.
Insurance is a bad investment, and the clients have become its victims.
Everyone is made to believe he or she needs insurance due to forces that happen beyond their control.
It has become this psychological fear that, without insurance, our lives are unprotected. However, it has instead become a false security.
If insurance companies are continuing to drop customers with legitimate claims and no previous requests, where is the safety in that?
Insurance companies are like bad relationships that never change. There is simply no trust.
Every year, millions of dollars in advertising is spent on insurance companies claiming they are the best, and, in times of need, they will treat their customers right.
However, their real goal is merely to gain more money in premiums and pay as little as they can in claims, thus allowing them to earn a profit.
I guess they like to have their pie and eat it too.
In reality, they will never pay someone a cent unless they completely have to — being forced by a jury — and even then it is a feat.
From making the argument that their investors are not really hurt after filing a claim to accusing them of insurance fraud, insurance companies can get out of doing their jobs in just about every way.
It does not help that insurance agents are also more preoccupied with their commission salaries than the best interest of their clients.
For whatever reason, people feel they cannot live without insurance.
From the beginning, it is ingrained in our minds that we need it, and this feeling will continue in the future.
While it is important to be protected in case of emergency situations, it is also important to actually receive that protection and to feel safe.
If action is not taken soon to improve consumer protection in the world of insurance, more families like my own will never receive the correct treatment they deserve.
By CLAIRE MUNN
Senior Editor
clamunn@umail.iu.edu