Insurance is something we all need for our cars, homes, boats, businesses, personal possessions, and even our lives. There are probably more categories than just these, but these are the ones most of us will consider throughout our lifetime.
So what is insurance and how can it protect you? Insurance is defined as a contract between the party needing coverage and the insurer who agrees to reimburse the covered party in the case of fire, loss, accident, etc. The insurer agrees to pay a premium for the coverage provided as part of the contract. If damage or loss occurs, the insurer would reimburse the insured party for the value of the loss, a percentage or fair market value.
Purchasing insurance can be a bit daunting since there are a lot of broker choices. So how do you choose? A number of factors need to be considered before making a choice, such as the type of coverage (partial or full), amount of the premium and, if there is damage or a loss, the amount of reimbursement the company will provide.
One type of insurance that is a necessity is vehicle insurance. It is illegal to drive without some type of coverage. If you have this coverage and are in an accident and cause property damage or an injury, your insurance policy will help to pay for damages and/or medical expenses of injured parties.
Travel insurance is an optional insurance and is offered when you purchase travel tickets. There is a fee for this insurance, on top of the price of the travel tickets, to protect you in case of illness or injury. If you choose not to purchase this insurance you won’t be protected and will be responsible to pay for any medical expenses or emergency travel expenses if you need to be sent elsewhere for treatment.
Health insurance is important if you live in a country that doesn’t provide a national health plan. Hospital stays, tests, treatments, etc. can be very expensive, and having health coverage will help to pay for these costs. Medical insurance policies can be limited to single coverage, or expanded to cover your spouse and your children.
Insurance policies are usually renewed on an annual basis and it is recommended that you should review your policy each year. Does your policy still cover all of your needs? Can your broker make additions or deletions to your policy to suit your needs? What about cost – can you get any discounts? If you feel like your current insurance provider isn’t covering all of these needs, then maybe it’s time to start shopping around for a new provider.
Asking questions is important when shopping for policies to insure you are getting the coverage you need, and at a price you find reasonable. Remember that this is your policy and that insurance brokers are there to help you find the coverage that suits your needs. Whether young or old, insurance is something to consider and plan for when budgeting. You never know when you will need to be covered.
