What Is Insurance Anyway: Do I Need It?
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So... How Does insurance work?
The word "insurance" has been derived from the Latin word "cautio", which in turn comes from "cavere", meaning "to guard or to take care".The job of an insurance company is to make sure that the people who have purchased policies are covered in case of any unfortunate event. There are two main types of insurance: life and property. Property includes everything that we own, like our home, car, furniture, and jewelry. Life insurance covers our family against fatal illnesses etc. So, Insurance is primarily a protection against unforeseen events which might result in a financial loss?
It can be difficult to understand how insurance works because it's so complicated! Luckily, as you're reading this article on this topic, we will break down everything for you - including how you should select the best policy for your needs.
Who can Apply for Insurance?
Purchasing insurance is no easy task. There are many different types of policies and plans, so you need to take the time to select the best one for your needs.
The key question is: "Who can apply for insurance?" One needs to qualify before they can apply. They need to meet certain requirements that are set by their provider.
There are many people who qualify for many different types of insurance. That's why It's important that you know what type of insurance you qualify for, which could be medical or life, before applying.
You will often see a list of requirements on an application form before you fill out your information. These requirements can depend on the company that is selling insurance and the type of coverage that they offer.
some requirements for obtaining certain types of life coverage include employment history, gender, age-range, and lifestyle factors such as drinking alcohol or smoking cigarettes regularly.
Fun Fact:😄
Many people are eligible to get a life or medical insurance plan. You may even have a job where you are required to have this type of plan but don't know what options you have. One way to find out is by taking our quiz!
The types of insurance you can get
The type of insurance you need to get depends on your situation. Depending on where you live and what the law says in that state, the insurance company can require certain policies or offer them at a cheaper rate.
There are various types of insurance that you can get to protect your assets. The most common are life insurance policies, which offer protection against the risk of premature death. There are also property and casualty insurance policies, which cover damage to property from fire, theft, or natural disasters while also protecting against liability claims.
People with more assets will often invest in additional types of coverage such as health insurance, disability insurance, or long-term care insurance.
There are also other types of insurance one can also get if you are perhaps looking for more tailor-made policies:
- Travel insurance
- Mobile insurance
- Pet insurance
- cycle insurance
- bite-sized insurance
Stay Alert:😴
How Much Does Insurance Cost?
The cost of getting insurance varies greatly by factors such as age and location, but you should expect to pay at least a couple hundred per month for basic coverage, not to mention the other factors that also have a great influence on cost such as the type of car or house you are looking to cover. Let's take a look at some example costs.
The cost of home insurance can vary from $200 to $1,000 per year in the United States. The average cost is around $600 annually.
The average car insurance in the United States is between $500 and $700 a year, with some states having much higher rates than others.
Now I know that some of you guys are already making Loud remarks such as:
It doesn't matter where you live, what your age is, or how much you earn - the cost of insurance just keeps rising.
But stay with me and I promise that there is a silver lining ahead.
The Pros and Cons of Getting Insurance:
the consequences of not having any type of insurance are either known or unknown risks that may happen in the future. The potential consequences may be greater than what the person will have to pay for the premiums annually.
BUT with that said, here's a list of possible pros and cons:
Advantages:
- Saving money and time from not having to deal with the hassle of filing and paying for claims.
- Gives peace of mind, knowing that you are adequately insured in the event that anything happens to you.
- Allows people to purchase coverage for themselves and their families.
Disadvantages:
- If there is a lapse in coverage, you could be denied coverage later on if you ever need it.
- You may already be covered by work or other insurance so getting insurance from another source may not provide much benefit, especially if are going to pay a high premium price for it.
- There are some pre-existing conditions that will prevent you from getting insurance even though they have been stable for years - such as acne or mental health issues -
So, As you've seen...There are a lot of reasons why someone might want to get insurance. But, there are also times when it's not the best option for someone.
The advantages of getting insurance would be that it might save you money if you have an accident or something else bad happens in your life. Disadvantages would be that you might have to pay more over time in order to keep the same coverage.
The bottom line: Is Getting Insurance even Worth it?
If you have read the introduction, then you've probably been anxiously waiting to find out whether this insurance "thing" is really worth having or not.
okay, so with me being a numbers nerd!... I am going to answer this topic by looking at some basic stats:
In the U.S. about 75% of all drivers are insured.
There are several reasons for this, including:
- increased safety on the road;
- emotional security on behalf of the driver’s family and friends;
- financial security in case a driver is involved in an accident.
The Verdict:
Some people argue that insurance is not worth it, but this is a false conclusion - there are many benefits and it's always better to be safe than sorry.
It is essential to have appropriate insurance coverage to protect your family and finances in the event of a crisis.
The main reason to get insurance is that it provides protection from unforeseeable events. For example, if you live in a flood-prone area, you want to make sure that your possessions are safe and that you will be able to rebuild your home after the water recedes.
There are some instances where you may think that insurance coverage is not necessary, but often times these cases warrant making sure that you have the appropriate coverages in place. For example, if someone dies from an accidental death on their property or causes property damage as a result of criminal activity- even if it was not their fault, they would likely need protection through an insurance policy.
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