Insurance is an effective way of financial protection against potential financial loss. It’s also a form of financial risk management, primarily utilized to offset the inherent risk of some future contingent or uncertain event. For example, some companies provide life insurance to employees and families. Life insurance provides a means to pay off an existing mortgage, as well as some of the principal owed on it, while still protecting the family members from the possibility of the death of the person insured. If a policyholder should pass away, the life insurance proceeds would then be paid directly to the survivors or beneficiaries of the policyholder.
Health insurance coverage is another important consideration for consumers. In today’s world of ever-increasing health care costs, individuals may want to consider raising their deductibles or otherwise reducing their insurance benefits in order to afford higher premiums. Raising or decreasing deductibles will, however, also affect monthly insurance payments. Therefore, consumers may want to carefully consider the pros and cons of various coverage plans, before making any final decisions regarding health insurance.
Long-term disability coverage and accident insurance are two types of insurance that most people consider necessary insurance coverings. Long-term disability coverage pays benefits to an insured person, while accident insurance pays benefits to the insured while they are unable to work because of an accident. Although both of these coverage plans typically have monthly premiums, the policies can be significantly higher or lower in cost, depending on many factors. Long-term disability coverage usually pays a portion of one’s lost wages during a particular period of time, up to the date of the policy’s expiration. Accident insurance often pays benefits up to a period of time equal to one year. The premiums for both types of insurance vary by age, as well as medical and lifestyle characteristics, such as whether the insured is smoking underweight, or diabetic.
When considering long-term disability insurance or life insurance policy premiums, some insurance consumers mistakenly believe that their age will influence their premiums. Some companies calculate the monthly cost of long-term disability insurance based on an applicant’s age at the time of application. Unfortunately, even when age is taken into account, older applicants may experience higher premiums because they are more likely to miss out on important medical benefits that their younger peers receive. Therefore, consumers should be aware of their own health history and how it could affect their long-term disability or life insurance policy premiums.
A recent study found that people who owned multiple insurance policies were less likely to be involved in a car accident than people with only one. Surprisingly, the reason for this was because insurance works in different ways for different types of people. A car insurance company may pay a lower monthly premium for someone who drives a safe vehicle, for example. On the other hand, a person with a history of high speeding or using other illegal substances may be charged with higher premiums because he or she drives a car that runs into a lot of accidents. The same theory works for life insurance policies as well, meaning that younger drivers may experience fewer claims because of their smaller risk factors.
When searching for a reliable insurance company, consumers need to ask about key takeaways such as: how many years the insurer has been in business, what types of coverage are offered, and what the total cost will be for a given monthly premium. These key takeaways will help an individual to compare the policies of several different insurance companies and find the one that best fits his or her needs. Finally, when comparing insurance quotes, the consumer should look for a company that offers the best possible customer service. Good insurance companies are those that not only respond to phone calls and emails but also offer great customer support during regular business hours.