Insurance is a contract whereby you transfer some or all of your risk to the insurance company in exchange for financial protection against losses. It can cover unforeseen events like car accidents or a fire that damages your home.
Insurance companies use a process called underwriting to determine who they will insure and how much their premiums should be. They may also invest some of their premiums for additional revenue. Contact Equine Insurance for professional help.
Life Insurance (also known as Life Assurance, especially in Commonwealth countries) is a contract between an insured (person or entity buying the policy) and an insurer that promises to pay a designated beneficiary a sum of money upon the death of the insured, or on other specified events, such as terminal illness. Often, the insurer will also collect premiums from the insured on either a regular basis or as one lump sum during the life of the policy.
The amount paid by the insurance company to a Nominee when the Policyholder dies is called the death benefit or face value of the policy. The insurance company will take into account the age, health history and family history of the applicant when determining insurability for an individual. This process is known as underwriting.
Some insurance companies offer specialized products to specific markets, such as whole life policies with low face values designed for seniors (often called final expense insurance or burial insurance). These are typically marketed using “simplified underwriting” and can be approved without the need for a medical exam, instead relying on answers to a series of yes/no health questions and a review of the applicant’s prescription drug history.
Group life insurance is an option in which a group of people (such as employees at a business, members of a union or association, or members of a pension or superannuation fund) are covered by the same life insurance policy. While this type of coverage does not require individual proof of insurability, it is subject to special exclusions, such as a statutory two-year suicide clause and the ability of the insurance company to contest a claim on the grounds of misrepresentation during the application process.
Auto Insurance
Auto insurance is an important purchase for a number of reasons. It’s a legal requirement in many states and it helps ensure that you can pay for damage or injury caused by an accident while operating your car. It also protects you from financial loss should the car itself be stolen or damaged by something other than a collision, such as fire or flood.
Auto policies are generally divided into two coverage types: comprehensive and collision. The former covers damage to your vehicle regardless of who is at fault, while the latter pays only when your car is in an accident with another covered vehicle or object. In addition to these basic policy options, there are numerous optional coverages you can add to your policy. These include personal injury protection (PIP), which covers medical expenses for you and your passengers no matter who causes the crash, uninsured motorist coverage, which reimburses you if an accident is caused by an uninsured or hit-and-run driver, and under insured motorist coverage.
Other factors that affect your premium are the age and driving records of other drivers in your household, the type of vehicle, whether you drive a carpool or not, and how much you use your vehicle for work. Also, some vehicles are more expensive to repair or replace than others, and your insurer may take these into consideration when setting rates.
Several discounts can lower your premium and make your policy more cost-effective. These include good-driver discounts for people with clean records, anti-theft devices that reduce your risk of theft and vandalism, and bundling your auto and home policies together to get a discount. You can also save by consolidating your policies with the same company and maintaining a good credit rating.
Some companies offer additional special coverages such as roadside assistance, mechanical breakdown insurance and new-car replacement. However, not all companies offer these and they aren’t available in every state. In addition to these specialty options, there are other ways to save on your auto insurance including a safe-driver discount, an accident forgiveness discount, and the option of adding a family member’s car to your policy for a discounted rate.
Home Insurance
A standard homeowners policy provides protection for your home and personal belongings against events such as fire, wind damage and theft. It also covers you if someone is injured on your property. Homeowners insurance can vary widely, depending on the coverages and limits you choose, but most policies contain a similar set of basic features.
The first page of a home policy is the declarations page. It includes summary information such as the policy name and number, the homeowner’s contact information, a description of the insured property and the dollar amounts of the various coverages. It also lists the deductibles and endorsements.
Most home insurance policies provide coverage for your house and other structures on your property that aren’t attached to your home, such as fences and sheds. The policy generally provides either replacement cost or actual cash value (ACV) coverage for these structures, and you can usually choose the type of coverage you want. ACV coverage may be a better option for older homes, as it typically reimburses you for the market value of your home as opposed to its current replacement cost.
Many homeowners policies include personal property coverage for items inside your home, such as furniture, electronics and appliances. This usually has a dollar limit that is a percentage of the dwelling coverage amount. The personal property coverage limit may not include expensive items, such as jewelry, firearms and collectibles. For these types of items, you may need to purchase an endorsement to your policy.
Homeowners insurance also provides liability coverage to pay for legal fees and medical expenses if a guest is injured on your property. Most policies have a pre-set limit for this coverage, but you can often increase it if needed.
Many home insurance policies provide a separate limit for additional living expense coverage, which pays for your hotel or rental expenses if your house is destroyed or damaged and you can’t live there. This limit is often a percentage of the dwelling coverage amount, although it can be less than this. The limit should be high enough to cover the cost of renting a comparable residence for at least 12 months.
Health Insurance
Health insurance is a legal entitlement to payment or reimbursement of your healthcare costs in exchange for a monthly premium, either from private insurers or through government-sponsored programs like Medicare or Medicaid. It may cover medical and surgical expenses, prescription drugs, preventive care, and other services. It also covers some of your out-of-pocket costs, such as deductibles and co-pays.
Choose a plan with the best scope of coverage to minimize your out-of-pocket expenses during claims. Check the coverage details, premium costs and renewal terms before selecting a policy. Also, look for add-ons that offer additional benefits to make your coverage more comprehensive and cost-effective.
Consider a plan with a Preferred Provider Organization (PPO) or Health Maintenance Organization (HMO) network. These plans generally cost less when you use doctors, hospitals and other providers that belong to the network. They also typically require you to get a referral from your primary care doctor before seeing a specialist. Also, consider a Point of Service (POS) or Integrated Delivery System (IDS) plan that offers integrated care and focuses on prevention.