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
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 >
Exactly how much life insurance a person needs varies based on factors such as income, expenses, family size and if the individual has any dependents. Some experts recommend having a life insurance policy that covers between five and 10 times a person's annual income.Full Answer >
A term life insurance policy is a straight-forward product where a person pays monthly premiums in exchange for a guaranteed death benefit. It is called a "term" policy because it covers the insured person for a certain amount of time, often 10 to 30 years.Full Answer >
Mortgage insurance is a coverage product home buyers purchase to protect the risks of a lender issuing a loan with a low down payment requirement. In a conventional mortgage, the home buyer is required to pay for private mortgage insurance when the initial down payment is less than 20 percent of the purchase price.Full Answer >