By definition, insurance cover is a contract that when entered into, promises you compensation in the event that you suffer certain losses as defined in the contract itself. The promise is also contingent to you meeting stringent requirements and paying a monthly premium.
Insurance can be classified into personal and property insurance. Personal insurance deals with you and your family and focuses on helping you in the event of poor health, loss of employment and upon disability insurance. Property insurance covers what you own, be it your home, auto mobile, pets, jewelry and other forms of property. There are several reasons for choosing insurance. The principal one is to indemnify you against risk and loss. Some types of insurance are required by federal or state laws employers and landlords. When considering insurance options, factor in the type of property you want to insure.
The two classes of insurance can be divided further into:
• Auto insurance - This is a policy taken out against your motor vehicle. There are different types of insurance to choose from and you should consult a qualified insurance agent to assist you in making the right options.
• Life insurance - Losing a loved one is never easy. Before you can even properly grieve, you are faced with making funeral plans and settling the deceased affairs. A life insurance policy helps cover funeral costs, helps pay off debts that an insured had before their death and settles any taxes that the deceased estate has. Any surplus is then given to the surviving beneficiaries as stipulated in the policy.
• Agricultural insurance - This type of insurance protects the farmer against loss or damage to their produce or animals. Common events that are insured against are floods, epidemics and droughts.
• Property insurance - This is a broad spectrum insurance that covers several types of property. Homeowners insurance indemnifies you from any loss or damage to your property as a result of theft, fire and water damage. If you own a commercial property, you may acquire a policy specifically dealing with the most common risk you are exposed to based on the industry you are in. You may purchase fire insurance, landlord insurance, flood insurance; the list is endless.
• Unemployment insurance -This mostly covers disability of workers. If you are injured while performing your duties, employers will pay you a portion of your salary or wages every pay period while you recover.
Always make sure that your insurance policy covers what you intend it to cover. Consult your insurance agent on any queries you may have. There is nothing worse than thinking you are covered against a certain unfortunate occurrence only to find out after it has happened that your policy does not include it.
Also, always read the fine print of any insurance policy. It will save you a lot of time, money and unnecessary inconvenience. Choose a policy whose premiums you can afford to pay and perhaps you can also set up automatic deductions from your bank account so that you are not denied compensation later on!
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