Are you familiar with insurance? If not, don’t worry – you’re not alone. A lot of people don’t understand insurance or the importance of having it. In this blog post, we will discuss 4 things that everyone should know about insurance. We’ll cover the basics, like what insurance is and what it covers, as well as some of the benefits of having insurance. Hopefully, by the end of this post, you’ll have a better understanding of insurance and why it’s so important!
What Is Insurance
Insurance is financial protection from unexpected things in life. Some of these things include property damage, theft, illness or even death. Depending on which insurance you get will depend on how much you are covered and can reduce hardship or financial loss. Insurance is one of those things that you don’t really think about until you need it. And when you do need it, insurance can be a life-saver.
How Does Insurance Work
Insurance is a contract between you and your insurance provider. You make a monthly or yearly payment called a premium to your insurance provider and in return, if something happens they will pay for the damages or misfortune for you so you aren’t out of pocket. Depending on how much you want to be covered will determine how much your premium is per month/year.
For insurance policies like home, car and health insurance the amount of premium will also depend on the deductible. The amount of deductible is agreed upon when first getting your insurance out and is what you agree to pay when you claim before your insurance provider pays the rest of the amount. When choosing a higher deductible your monthly payments will be smaller compared to a lower deductible where your monthly payments will be larger however you wouldn’t have much to pay out of pocket if you needed to make a claim. When choosing your deductible you should keep this in mind and pick an amount that works for you.
What Types of Insurance are There?
There is just about insurance for any industry or thing that could lead to financial hardship. Some of these include life insurance, health insurance, home insurance and business insurance.
So let’s take a further look into some of the insurance available
Health insurance can include Disability insurance, hospital cover, extras cover (which can include optometrists, dental and natural therapies), Travel medical insurance and long term care insurance. If you have a significant disease or injury, some health insurance policies can help you replace your income and if you become ill while on vacation, some plans can cover medical expenses.
Life insurance helps your loved ones if you pass away by providing them with a payment that is agreed upon in your policy. There are a few different covers you can choose when getting out life insurance and would be best to speak with an insurance company to get the insurance personalised to your needs.
Home insurance helps protect your home and belongings in the event of theft, vandalism or natural disasters. This type of insurance can also cover you if someone is injured while on your property.
Business insurance can be personalised to your industry and can help protect business owners from financial loss if their business is interrupted due to an unforeseen circumstance.
How to Apply For Insurance
When getting in contact with an insurance provider they will ask you a few questions to get started and see if they can issue you a policy. Some of these questions will include your age, medical history, any previous claims made and the amount of coverage you are wanting. Some insurance types may have different criteria before getting a policy out.