Oct 03, 2018
Let's face it - insurance is complex. From insurance jargon like "deductible" and "premium" to the hundreds of insurance providers and services available nationwide, it may be tough to determine exactly what type of insurance to purchase or how much coverage you need. Yet if you purchase the wrong type of insurance or insufficient coverage, you may suffer the consequences of your decision for years to come. Now, let's take a look at five questions surrounding insurance, how it works, and its benefits:
Insurance guarantees financial protection against loss. It can protect you against a wide range of risks including home burglaries, car accidents, major illnesses, natural disasters, rentals, and much more. Also, insurance can guarantee that you will receive financial payments if you become ill or injured while at work.
An insurance policy has a deductible, i.e. the amount you will need to pay before your coverage starts. For instance, if you buy health insurance that has a $1,000 deductible, you will need to pay the first $1,000 of covered health services out of pocket. Once you meet your deductible, you will be required to pay only a copayment or coinsurance for covered health services.
Additionally, an insurance policy has a premium, which is the amount that you pay for insurance. A premium is usually billed monthly or annually and is based on your risk level and the value of the events that you are insuring.
If something happens that is covered by your policy, you can make a claim. Your policy provides full details about how to submit a claim to your insurance company, along with how long it will take your insurer to process the claim.
There is no shortage of different insurance options available! Some of the most common types of insurance include
Insurance costs vary based on the type of coverage you need as well as your age, location, and other factors. As such it is typically a good idea to shop around for insurance. If you explore a broad array of insurance options, you can find the best possible coverage at the lowest price.
There are several factors to consider as you evaluate different insurance companies, such as: