Insurance


The Basics of Insurance

Property and Casualty Insurance
Health Insurance
Disability Insurance
Long-Term Care Insurance
Life Insurance
Term Life Insurance

Everyone needs insurance protection in some form or another, whether it’s auto, medical, liability, disability or life. Insurances serves an important function in risk-management and wealth-preservation. Insurance is a critical component of every family’s financial well being.

Individuals and businesses buy insurance to protect against potential financial disruption. 
With life insurance, if theprimary wage earner were to die without insurance protection, the family would be subject to severe financial difficulties as they would be left without an income. The same principle works for other forms of insurance. 

Health or medical insurance is purchased to avoid unforeseen medical bills. Which can cost in the hundreds of thousands of dollars. Auto insurance is mandatory by law for every vehicle to protect against accidents and personal injuries. Homeowner’s insurance is to protect against vandalism, theft, fire and other natural disasters. 

Insurance primarily is bought to protect against risk. Insurance companies sell policies to a large group of people. They use statistical analysis to calculate how many people in a given group will face losses at a given time. By determining how many claims will be filed in a given year, insurance companies can set their prices to allow for payment of claims, business operating expense and to make a profit for shareholders. For life insurance, companies use mortality tables to calculate how many people will die in a particular age group per year. All owners of vehicles must have auto insurance, however only a percentage will have an accident in a given year.

Some accidents are avoidable and many are unforeseen. 
By buying insurance to cover against a particular risk, you transfer the burden of responsibility and monetary loss to the insurance company. Insurance companies are in the business to protecting their clients against such losses and have the capacity to compensate. And because some illnesses, accidents or disruptions in one’s life can be the cause of financial disaster, it is wise for everyone to consider purchasing insurances.
Insurance is to protect one’s family members against financial loss and disruption.

The insurance company underwriting department evaluates the risks of a particular insurance product. By calculating the average loss per claim filed against them, the insurance company determine how much the insured must pay to purchase the insurance product. Insurance companies make detailed inquiries about their clients depending on the type of insurance being purchased. Underwriters examine health records, driving history and characteristics of potential clients to evaluate risk.

The Insurance Policy is the contractual agreement between the client and the insurance company.

The policy is a legal document that sets out the conditions and agreement between the insured individual and the insurance company. It will also state the premium that the client must pay and the payout schedule.

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Introduction to Insurance
Property and Casualty Insurance
Health Insurance
Disability Insurance
Long-Term Care Insurance
Life Insurance
Term Life Insurance


Insurance Basics – Part 2

Disability Insurance

Disability Insurance 101 Disability insurance is an important type of insurance for individuals, especially so for the primary wage earner in a family. Long-term disability can be disastrous for a family’s finances unless there is some form of disability insurance protection.  Disability insurance can replace a portion of the salary you were making before you …

Health Insurance

Health Insurance 101: The Basics Health insurance is the most important insurance you will ever buy. Without health insurance, an illness or accident can destroy you financially and catapult you and your loved ones into debts so deep you may never recover. Health insurance pays for medical expenses when you or your family members need …

Life Insurance

What Is Life Insurance and How Does It Work? Life insurance was first thought of  to protect the income of families, especially young families just starting out, in the event of death of the head of household. But today, life insurance is used for many other reasons, including wealth preservation, estate tax planning and even …

Long-Term Care Insurance

Long-Term Care Insurance 101 Long term care is when the elderly need assistance with their normal daily activities due to physical disabilities and mental impairments such as memory loss, Alzheimer’s and dementia. The rising costs of nursing homes, assisted living and extended care facility can quickly erode the savings of pensioners. The best way to …

Property and Casualty Insurance

About Homeowner’s Insurance Property and casualty insurance are insurance products that protects against property losses to businesses, homes or vehicles. This includes, legal liability from injury or damage to the property of others. Auto Insurance An auto insurance policy covers you and others involved in an accident against personal injury, medical bills and damages to …

Term Life Insurance

Life Insurance: Term vs Whole Life. Basic Tips and Strategies One of the most popular types of life policy is ‘Term Life Insurance’. It protects your beneficiaries against financial loss in the event of your death. It is also the least expensive form of life insurance on the market. But it only provides protection for …