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Insurance That Goes Beyond Health And Automobiles

Insurance That Goes Beyond Health And Automobiles

When it comes to protecting yourself or your family, you probably think about health insurance and car insurance almost immediately. However, it is important to note that there are other kinds of insurance out there as well. These policies help protect you from loss as well, so they should not be discounted.

If you own a home, it is important to get an insurance policy to protect the dwelling and all of your possessions. For example, if there is a tornado and a portion of your structure is destroyed, homeowners insurance covers the repairs. If you have a mortgage on your home, you probably do not have a choice when it comes to this type of insurance; it is required as part of your agreement. After all, the mortgage company wants to make sure you continue to pay them, and a great loss on your part would compromise that ability.

The lender should allow you to choose what company you ultimately decide to go with. However, they will probably dictate how much insurance you should hold on your property. If the house is destroyed for some reason, they still get their money. So, while they may be a bit flexible in some ways, they are generally unwavering about the fact that you have to have insurance on your home. There are those lenders that will state which homeowners company you must contact. When this happens, it is because the lender and the insurer generally have some type of deal. You usually do not want to agree to this type of situation. Look for a different lender, one that lets you choose your own company.

As you search for the right provider, look for certain things. First, you want to ensure that they cover the types of issues that generally occur where you live. Also, keep in mind that you have to pay whatever deductible is on your policy. Usually, you have to add on flood insurance separately. Some homes may not need this coverage, while it may be necessary in other areas. Evaluate your land carefully to determine what you need. Also, you will pay less money if your deductible is higher, but make sure you have the money for it if the time comes.

Are you an athlete? Sports insurance is important in your situation. If you are hurt while playing, and you cannot get back on the field, this insurance can help. For example, professional athletes often have this coverage in case of a devastating injury that ends their season early. NASCAR drivers also look to get this insurance as well.

Athletes are not the only ones who take out insurance policies for their jobs. It is not unusual to find executives in the corporate world who take out something known as Key Person Insurance. This policy covers a team member, or the whole team, in the event of a disability. The person or people covered are generally very valuable to the organization as a whole, so if something happens to that person, the insurance pays for losses so the company can get back on track.…

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An Insight On Types Of Insurance

An Insight On Types Of Insurance

Insurance is a financial protection taken to shield individuals from financial losses related to different situations. It works under the principle of sharing losses. Those who wish to take up an insurance cover will have to agree to make fixed payments (premiums) to the insurer (the company offering the insurance cover). The insurer will in turn offer a contract (insurance policy) to the client.

Insurance is available in various forms; for instance, life insurance (L.I) is taken to offer financial aid to a family in case of the demise of its income earner. The health insurance (H.I) aid with payment of medical bills while the fire insurance partly or fully pays for loss of home or property destroyed by fire. These are just a few of the common types of insurance option that people take; nevertheless, insurance is also valid from other forms of possible financial losses.

The company will be legally obligated to pay the policyholder some amount of money known as a claim or benefit. How the company makes sure the insured will get the money is by investing in government securities, bonds, stocks, mortgages, or other income generating ventures. Payment is given based on the premiums collected and the incomes earned for the investments done on the premiums.

How insurance works is, the policyholder trades a particular small loss (the premium) to get a guarantee of payments in the event of a bigger loss. This gives the policyholder room to do business, own and drive a car, own property or a home without worrying of the financial hiccups that later on might arise.

Life Insurance exists in three types namely the Term life insurance, the Whole life insurance, and the Endowment life insurance. People can opt to take any one of the three types; however, most companies that offer L.I combine the 3 to form a singular insurance policy.

  • Term L.I avails claims in situations of the demise of the insured within the covered period as stipulated in the policy.
  • Whole L.I is a lifetime insurance cover for the policyholder.
  • Endowment L.I pays only the face value of the death of the policyholder.

Note that the Endowment L.I is commonly taken as a way of saving money with most policyholders opting for it to be able to avail some financial support for the education or upkeep of their children.

The current rise in health care has greatly pushed for better and adequate health insurance policies. Individuals without a health insurance policy risk dealing with huge financial burdens in case they are serious ill or in a serious accident. Health Insurance will pay partly or fully for the costs of medicines, lab tests, surgery, hospitalization, and other medical care expenses.

H.I is sold as a group or individual policies. Individual H.I is common in a group plan within a person’s work place, and the plan may include the dependents of the policyholder. Individual coverage has slightly higher administrative costs and related expenses, which makes it a bit more expensive than group health insurance.

Health maintenance organizations, various employers, medical service plans, and insurance companies offer individual health insurance. Most companies offering health insurance policies also offer cash benefits (a fixed amount of money medical expenses incurred in during the hospitalization period) to the policyholder.

In some cases, the benefits may not cover the full medical bill, so the policyholder is expected to foot the rest. Individual health insurers offer 4 types of H.I each having its own benefits coverage. The four types are:

  1. The Hospital Expense Insurance
  2. The Outpatient Expense Insurance
  3. The Surgical Expense Insurance
  4. The Major Medical Expense Insurance
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