Connect with us

General

Understanding Insurance Policies

Sound financial planning requires the use of proper insurance plans. Many of us have some kind of insurance, but only a few have true understanding on what it must have. For many consumers, insurance is considered as a form of investment and it could provide some amount of financial return in the future. Ask about their favourite investment methods, many would say that insurance is the central part of their investment program. However, insurance products are also subjected to rampant mis-selling, since many agents are taking advantage of enthusiastic consumers. They only seek to gain fat commission by selling more insurance products.

Insurance can be used to spread out our financial risks. It is not only useful for household consumers, but also business organizations to counter any unfortunate event. In its purest form, the claim won’t be paid after predefined events occur. In essence it should help us effectively spread risk among other consumers who also seek to get financial security. To obtain the financial protection against risks, we should create a contract with the insurance provider. As an example, the life insurance plan promises an amount of money for family members or other parties, when the insured passes away before a predefined time.

To obtain the financial protection against possible risks, the insured party is required to pay compensation and it’s known as premium. It could be paid monthly, quarterly and annually as decided in the signed contract. The total amount of premium payments paid is usually lower the actual coverage, so it would still make sense for consumers to seek insurance. It should be noted that there are a variety of factors that could determine our premium and coverage. These factors may include the age of the insured individual, when the insured item was bought, the number of years the coverage is sought and additional benefits we seek.

It should be noted the specific insurance plans may contain some add-ons that provide us many more things than just financial protection. As an example, our life insurance plan may include personal accident rider. It is actually possible to exit the policy before the terms end and take back our money, if we haven’t made any claim. In this case, the policy will cease to exist. The amount the insurance company pay us is known as the surrender value.

In essence, anything that can be quantified financially can be insured, even including our lives. In this case, life insurance policy can protect our family financially due to loss of income. Health insurance can also protect our family against unexpected medical expenses. Car has monetary values and we could get financial protection against damage in accidents or robbery. We could also protect our home against flood, fire and thefts. In this case, any perils that can affect our family should be considered as something that may happen and we could get insurance coverage for the,

Continue Reading

Recent Posts

Business4 weeks ago

Your Basic Guide To Creating A Unique Investment Blog

Starting your own blog is great and once you get the ball rolling, it can be a good passive income...

Business4 weeks ago

3 Low-Risk Ways To Get Your New Business Started

Once you’ve got an initial business idea and believe that it will be a success, there are some basic things...

Lifestyle1 month ago

Conquering the Co-free Zone: Tips for Thriving as a Remote Worker

Adjusting to an office environment can come with its downfalls in the sense that it might be a shock to...

General2 months ago

3 Ways To Take Control Of Your Finances Starting Now

If your finances have taken over and are bringing stress to your life, we understand just how overwhelming it can...

Travel4 months ago

Best Places To Visit In The North Of England

If you live in England, you will know there are many different places to visit for the weekend. There are...

General4 months ago

Green Home Improvement Ideas

In a world where environmental concerns are growing, the concept of “green” has gone beyond a trendy catchphrase and is...

Lifestyle4 months ago

How to Host an Unforgettable House-Warming!

The time has finally come. You have moved into your dream pad, and are officially adulting in your very own...

Autos4 months ago

A Guide to Parking Lot Striping

The journey to a well-striped parking lot begins with the right paint. In this brief guide, we’ll unravel the mystery...

Business7 months ago

Business Tips For Protecting Your Finances During A Recession

In 2023, taking the necessary steps to protect your finances for your business is now more important than ever. The...

Lifestyle8 months ago

Tips For Cleaning Your Trainers

If you’re into your trainers and streetwear, you’re likely to be very conscious of keeping them looking their best! So,...

Marketing8 months ago

Branding Trends For Start-Ups in 2023

Branding is incredibly important as it impacts how your business reaches and connects with its target market. If you’re branding...

Business8 months ago

Avoiding the Wrong Kind of Growth

Growth is vital for any business – some models, like tech start-ups, are built around periods of dramatic, explosive growth...

Business8 months ago

How To Become A Property Developer

There are several reasons why an individual will want to become a property developer. One of the main reasons for...

Tech11 months ago

What Is The Difference Between Cyber Attacks and Cyber Threats?

If you own a business that uses the cloud to manage workloads, you have probably heard of the terms cyberattack...

Marketing11 months ago

3 Types of Marketing Every Small Construction Business Should Do

Construction is a very saturated sector, whether you’re a large or small construction company, so marketing should be at the...

Categories

Archives

Trending