Insurance is important because it protects a person or entity from extreme financial loss or responsibility due to an unfortunate emergency, accident or negative unforeseen event. There are many different kinds of insurance, some of which cover a person and some of which cover businesses and other entities.Know More
There are many different types of insurance, but Investopedia says the most important types of personal insurance people should consider having in place include: long-term disability insurance, life insurance, health insurance, homeowner's insurance and auto insurance. Businesses should consider carrying property, general liability and professional liability insurance.
Insurance can protect people from financial devastation should the worst-case scenario happen. In the case of a car accident, for example, the insurance company will usually cover medical expenses and the cost to repair the car or purchase a new one. Health insurance helps to cover the day-to-day costs of doctors and prescription medications, but most importantly, it picks up the bulk of the cost should someone be diagnosed with a chronic or major medical condition, such as cancer. Business insurance can save a company from financial ruin in cases like medical malpractice, slip-and-fall injuries on the business property or injuries that may happen to an employee on the job.Learn more about Insurance
Insurance companies consider life expectancy to be important because it determines how risky an individual is and the amount of the premiums that the individual pays, according to Insure.com. A shorter life expectancy also means that there is a higher chance of early payout to the insured.Full Answer >
Purchasing life insurance from a reputable company is important to ensure that policyholders carry the right amount of insurance for a fair price and that the company pays out as agreed if necessary. To determine whether a company is reputable, research its financial standing and history of complaints.Full Answer >
A life insurance beneficiary is a person or party named in a life insurance policy to get the death benefit, according to the Insurance Information Institute. Policyholders can designate one or more people as beneficiaries. Beneficiaries can also be the trustees of a trust established by the policyholders.Full Answer >
Universal life insurance is a type of policy where a person is allowed to choose a premium and the benefit. It allows a person to opt for a long-term/permanent protection with a lower premium.Full Answer >