Coverage that Works for You.
Insurance is important. It is part of our everyday lives and to have a working understanding of insurance can make a major difference in what you pay for insurance. There are many choices out there to protect not only your personal property, but also your assets and lifestyle as well.
Personal insurance lines protect you against risks that normally would be a large financial burden to cover out of pocket. The risks and resulting losses an individual faces in life are never planned for and largely due to accidents, illnesses, death, or damage to personal property.
Insurance is a very simple concept: an individual pays an agreed upon amount (the premium) every month or year in exchange for a covered list of risks. Should an accident occur, the insurance company will pay for everything that is covered in a particular policy. Personal insurance is based on the idea of spreading risk around to many people and therefore making it more manageable for all. All the people paying into an insurance company help cover any claim made by one of the members to compensate them for their economic loss.
Does Everyone have to Buy Insurance?
Depending on the type of insurance, some are considered optional or supplemental, while others (like care insurance) are required by law. It is generally a good idea however to purchase insurance whenever there is a lot of investment or financial risk on the line. A home is oftentimes a families largest investment and therefore wise to have homeowners insurance to cover that large investment should tragedy strike. Really, anytime where a financial loss is beyond what you could afford to pay or recover from easily, some type of insurance is needed to cover those potential losses to avoid financial disaster.
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Understanding the Basics of Insurance
Though insurance may seem a simple concept, it can become complicated when dealing with the fine print of a policy. The declaration page of an insurance policy lists the basic limits of coverage that particular policy caries. People sometimes become frustrated when filing an insurance claim because of the wording on the declaration page, something one of our highly trained insurance agents are happy to explain to all of our clients. Here are a few terms to help with the reading of an insurance policy:
The amount of money you will have to pay in a claim to receive the payout. The higher the deductible, the more risk you personally take on and the smaller the monthly or yearly premium.
Items not covered by the insurance policy. Please be sure to ask many questions about exclusions so there are no surprises when it comes time to file a claim.
Every policy comes with a section that outlines the amounts payable in a claim. Again, it is important to ask about these limits and to have an understanding of what the maximum limits are and if you need a larger policy depending on the value of the assets being covered.
A length of time an individual may have to wait in order to receive their payout. For example, certain types of dental insurance carry waiting periods. In the case of life insurance, there is often a suicide clause which could also cause a waiting period.
Endorsements are amendments that can either further or limit the coverage of a policy. Endorsements, sometimes referred to as riders, are legally binding amendments to the insurance contract and can be added mid-term or at renewal.