Life is up and down sometimes things go wrong. Natural disasters such as flood, tornado an earthquake strike, house burns down, car crash or fall ill it can happen anytime so life has risk. Which may large costs and can’t afford. The risk of some of these things happing may be small. But if they did happen, the impact on finances could be huge. Whatever the risk, chances are there is an insurance policy available to reduce the financial loss should these events happen.How companies work?
Insurance is a financial product sold by insurance companies to safeguard you or your property. Buying and insurance policy transfers the risk from you to an insurance company. We pay an amount of money called a premium to an insurance company. If an unexpected event occurs and it is covered by the wording of policy, you insurer pay you a sum of money or repairs or replaces the items that are lost or damaged. When you buy a policy you make regular payments, known as premiums, to the insurer. If you make a claim you insurer will pay out for the loss that is covered under the policy.
Which insurance do you need?
Everyone needs all the different kinds of insurance. How much insurance you need will depend on your own circumstances and attitudes. When you consider getting insurance you need to think the insurance against the costs of buying it, and ask yourself.
1. What is the risk would you think and you own?
This could be death, a fire in your home or car getting stolen of accident, boast are expensive to buy many people can’t afford to repair or replace these things if they are damaged or destroyed. By paying a fee called a premium to an insurance company you get a promise ti return that it will pay the cost related to incidents covered by the policy. That can include damage to your car house boat or car or other property that you have damaged accidentally. But you have a duty to tell the truth when you apply of insurance.
2. What are the chances of it occurring?
There might be a fire in your home, but it will cost a lot if it happen. So insuring your home protects it against the risk of fire or other damage. Most house insurance provides cover only up to the sum insured a capped amount that is the limit of what you can claim. You need to decide what your sum insured is how much it would take to rebuild your home in the event of a disaster. House insurance is usually required by your lender when you have a mortgage. Lenders mortgage insurance covers the bank if you can’t make the payments on you loan.
3. What would happen do life insurance?
Life insurance provides a lump sum of money if you die, in some cases a portion or the enter sum insured is paid out before you die if you are diagnosed with a terminal illness there are different type of life cover the most common one is term life insurance, which covers you for a fixed number of years such as the length of your mortgage. So whole of life insurance policies are very expensive but cover you for the whole of your life until you die. if died would your family be able to pay for the legal expenses.
4. How much would it cost?
Would you have enough money saved to cover the cost and you want to use your saving for this for example, would you want to dip into your retirement savings?
If you can’t afford for something to happen, you should seriously consider taking out insurance. Insurance is important when you’d be badly affected by a loss, even one that is not very likely to happen, it’s less important to have insurance for losses you could cope.
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