In this debut business book, Erkis draws on his decades of experience in actuarial work—as well as his experience as a consumer in the insurance market—to explain the ins and outs of buying and using different types of insurance.
Erkis is thorough and straightforward in his presentation of what health, disability, life, and car insurance packages cover, how to compare them, and how to determine how much coverage is enough. With skillful use of analogy (“The restaurant uses what you ate at prior visits to arrive at a better estimate; the insurance company does the same by reviewing how many claims you have made in the past”), the guide makes underwriting and risk-management concepts comprehensible, and readers are left with a clear understanding of how the premiums they pay relate to the coverage they benefit from. With both footnotes and examples, the text offers advice that is both thorough and easy to understand, as in the comparison of low- and high-deductible premiums and payouts. Erkis is an advocate for maintaining sufficient insurance but encourages readers to take on no more coverage than they require for financial security, offering the story of his own consultation with an insurance broker as an example of smart decision-making. The book does not shy away from discussing the industry’s shortcomings (in particular, the difficulty of comparing pricing when each company offers varying benefits). It also addresses the use of insurance products as a personal finance tool, pointing out the often misleading claims customers are offered and instructing readers on how to evaluate the potential benefits of annuities and life insurance. Although the frequent reminders of topics covered in other chapters can be excessive, the writing is generally strong, clearly explaining sometimes-complex topics in straightforward language.
A solid, comprehensive book that outlines the world of insurance and its intricacies.