Life is indeed full of surprises. Sometimes good and sometimes bad. In case of the latter, we need to prepare ourselves and be ready for anything. One way of protecting ourselves against risk is through insurance services.
Often, we find ourselves discussing the term ‘insurance’ with our family, friends and colleagues without having the proper knowledge on what it is all about. This will give you an overview as well as identify the different insurance services readily available in the market.
First, let us define what the word insurance is. Technically, it is an agreement that protects you from financial loss by providing monetary compensation. The person who purchases insurance is identified as the insured while the company that provides the policy is known as the insurer. The contract or policy determines the terms on how the insured will be compensated. A premium refers to the amount paid to the insurer which covers the risk.
There are several types of insurance in the market. Want to know what type of policy you need? Here are some to name a few:
- Life insurance
- Health insurance
- Property insurance
- Auto insurance
- Travel insurance
Life insurance, the most popular of all, protects you from financial loss in case of death. During hard times, money should be the least of your problems. Acquiring a life insurance will guarantee financial security and provide support for your monetary needs. Most deaths are sudden and the loved ones left are often left with the financial burden. Many are not prepared financially especially since memorial services are very expensive.
Health insurance on the otherhand, covers your medical expenses including illness and disability. This is also an important kind of insurance. In any case you get sick, you’ll be able to receive medical care and also be entitled to the benefits issued in your policy.
Auto insurance shields you from certain risks by covering the costs sustained by vehicular injuries or accidents. In some cities, you are required to have a car insurance before you are given a driving permit.
Property insurance safeguards your asset against theft and other types of damages including natural disasters. These include fire, typhoon, earthquake, flood and other hazards.
Travel insurance can also be used for your medical costs, lost baggage, delayed or cancelled flights and other incidents sustained while you are travelling. If you are feel uneasy during your trip, getting this will ease your worries and instead, let you focus on enjoying your travel without having any anxiety.
There are different terms and conditions for each type of policy. Choosing which suits you best is a matter of identifying your objectives and priorities. Insurance companies are now offering affordable packages to the consumers and some can even be customized to fit your monthly budget. Before deciding on what type of insurance you want to purchase, always consult with a professional adviser first. Pick a few companies with the best track record, compare the pros and cons, and commit yourself to learn and understand each policy. Hopefully, these will help you out in deciding if it is worth buying an insurance. Though there are many benefits of having one, I believe the most important of all and the one thing money can’t buy is your peace of mind.