Saturday, July 1, 2017

Why You Need An Insurance? A Guide To Deciding!

  IN some country certain   kinds of insurance are   obligatory. In others,   most kinds are        practically unknown. 
 In addition, the cost of  insurance and the type of coverage provided vary widely from country to country. But the fundamental principle of insurance—sharing risk—remains the same. "Why Do you need  An insurance? A guide to decide"

Naturally, the more property a person owns, the more he has to lose. Similarly, the more family responsibility a person has, the greater the impact if he or she dies or becomes physically disabled or anything happens to him or her. Having insurance can alleviate one’s concern about the possibility of suffering a loss of property or a disabling accident. "Do You Need Insurance?"

Yet, is it wise to spend money on insurance even though a claim may never be made? Well, take a look at the illustration. Is keeping a spare tire in the car a wasted investment, even if the tire is never needed? The sense of security to the car driver may make the expense of the extra tire worthwhile. His that not true? While financial compensation cannot make up for certain losses, e.g death, it may compensate for other losses.

What types of loss do insurance policies cover? Thats a nice question right?"Do You Need Insurance?"

Types of Insurance

Most of the insurance that is been purchased by individuals falls into the categories of property, health,disability, liability, and life insurance. Now lets take a deeper look at each of them: "Why Do you need  An insurance? A guide to decide"

Property insurance 

Insuring against the loss of property—home, business, car, or other possessions—is among the most common forms of risk management. 

Some home-insurance policies include coverage of certain items inside the home. If you buy this type, it is wise to make an inventory of your insured household possessions, if possible including photographs or a videotape. This inventory along with any appraisals or purchase receipts for the items should be kept in a safe location outside the home. Having these records could make settling a claim much easier."Do You Need Insurance?"

Liability insurance

Anyone who drives a car, owns a home or other real estate, operates a business, or employs others runs the risk of liability for an accident. And that accident may result in property damage or injury or death to another person. The car driver or the owner of property or a business may become liable to pay for property repair or for the medical treatment or even the pain and suffering of another. "Why do we need insurance?"

In many countries employers and drivers are required by law to carry liability insurance to help pay these expenses. Even where insurance is not a legal requirement, a driver, property owner, or employer may be held legally or morally responsible to help victims of an accident or their families. 

Health insurance

Many countries have some form of state-sponsored insurance that provides such benefits as pensions for seniors and medical care. Even where this is the case, however, such insurance may pay only a portion of medical expenses or may pay for only certain ones. Some individuals, therefore, obtain additional private insurance to help them pay the remainder. "Why do we need insurance?"

In many places workers may receive health insurance as a condition of their employment.
Some health-care plans, including managed care arrangements and health maintenance organizations (HMOs), provide comprehensive medical care for a set monthly or annual fee. These organizations endeavor to lower costs by providing less-expensive medical care and by promoting preventive medicine. "Why do we need insurance?"

However, in an HMO, a patient’s choice of doctors or treatment may be more limited than with traditional health insurance.

Disability insurance & life insurance 

Disability insurance provides some income if a person is injured and cannot work. Life insurance provides financial assistance to a person’s dependents in case of his or her death. Such insurance has enabled many families to pay off outstanding debts and carry on their routine of life after the injury or the death of their main breadwinner."Do You Need Insurance?"

Finding Reliable Insurers
Finding Reliable Insurers

Insurance is based on the principle of paying money now for financial protection in the future, so it is not surprising that the insurance industry attracts more than its share of swindlers. This is true in developed as well as developing economies. "Why do we need insurance?"

Therefore, one is wise to beware of so-called low-cost insurance and to be alert to any other questionable insurance scheme. Too many hopeful buyers have ended up with nothing when such companies failed to pay on their policies—or just vanished overnight!

So, as with any other important purchase, comparison shopping is wise, and it often saves money. For instance, some companies offer lower rates on health insurance to nonsmokers and on car insurance to those who have passed driver-education courses. But how can a potential buyer find reliable insurance? "Do You Need Insurance?"

How To Find A reliable insurance?
How To Find A reliable insurance?

A first step in finding a reliable insurance is first find out what others have experienced with various insurance companies and agents. Friends and neighbors may know a company’s reputation for service or an agent’s reputation for integrity and personal concern. It is also good to stay alert to news reports indicating which insurance companies may be having problems.
"How To Find A reliable insurance?"

Additionally, a company’s record and financial standing may be checked by consulting insurance rating guides at a library or a bookstore or on the Internet. These can provide the answers to such questions as: 

  • Is the company financially secure? 
  • Has it been in business successfully for many years? 
  • Is it known for handling claims quickly and amicably?

Insurance rating guides, however, should not be considered infallible. One long-established, multibillion-dollar insurance company had to be taken over by the government only one week after it had been rated as superior in a well-known handbook!
So then everyone looking for reliable insurance should do a well done investigation before going for it. "How To Find A reliable insurance?"

Role of Insurance Agents

An insurance agent is normally committed to a particular insurance company. A broker, or independent agent, may consult various companies to find the best insurance available for a given price. Both need to maintain a good relationship with clients in order to keep their business. When an insurance agent is trustworthy and concerned, he can be of great aid to his clients.

First, a good agent or broker can help a client to select appropriate coverage from the seemingly endless list of insurance options. He will also explain the details of the policy to his client. As many well know, insurance policies are notoriously complicated. "Do You Need Insurance?"

"The president of one insurance company admitted that he did not understand parts of his own homeowner’s policy!"

An agent’s explanation can help the client to avoid unpleasant surprises. For instance, most property- and health-insurance policies have a deductible. This is a set amount that the insured person must pay—say, for car repairs or medical bills—before the insurance company pays its share of a claim. 

The agent can also become his client’s advocate with the insurance company in case the client has difficulty obtaining a settlement.Now that you have lent all about insurance and what it can mean for you. It now you and your family, business responsibility to choose if you ever need an insurance. "Do You Need Insurance?"

Whether insurance is available where you live or not, there are basic precautions that can help you to avoid loss and thus spare you and your loved ones pain that no insurance claim can erase. We will next consider some of these precautions in our next post please be around and keep on check on us. You may sign up for our newsletter and get it on the go.

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