All you Need to Know About Insurance

Insurance basics: 5 things you should know about insurance – Live & Learn

Insurance is a legal agreement between two parties – one is the insurance company who is the insurer and the individual who is the insured. Here, the insurance company promises to make better of the insured in case of certain events and situations. The contingency is the event that would cause a loss. It could be the situation where the policyholder dies or damage/destruction to the property is caused. It is known as a contingency as there is uncertainty regarding the happening of the event and it is unpredictable. The insured would pay a premium in return for the promise made by the insurer. 

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Types of Insurance

Insurance could be broadly divided into three main categories: 

Life Insurance

Just like the name suggests, this is insurance on your life. You can buy life insurance to make sure that your dependents are financially secured in the untimely demise of the insured. Life insurance is very important if you are the sole breadwinner of your family or if the family is relying heavily on your income. Under life insurance, the policyholder’s family would be financially compensated in case the policyholder passes away during the term of the policy.

Health Insurance

You could opt for this insurance to cover medical costs in case you have to undergo some sort of expensive treatment. There are different types of health insurance policies that cover a range of diseases and ailments. You could buy generic health insurance as well as policies for specific diseases. The premium paid towards a health insurance policy would usually cover treatment, hospitalization and medication cost.

Car Insurance

Car insurance is very important and should be opted for, by every car owner. The insurance protects you against any untold incidents such as an accident. Certain policies for damages to your car during natural calamities such as earthquakes or floods. It would also cover third party liability where you will have to pay damages to other vehicle owners.

Education Insurance

Child education insurance is related to a life insurance policy that has been specifically designed as a saving tool. Education insurance could be a great method to provide a lump sum amount of money when the child reaches the age for higher education and gains entry into college. The fund could be used to pay for your child’s higher education expenses. Under the scheme, the child is the life I should have as the recipient of the funds whereas the parent or the legal guardian is the owner of the policy. You could estimate the amount of money that would go into funding your child’s higher education.

Home insurance

Almost everyone would have dreams about owning their own home. Home insurance could help with covering damage or laws caused to your home due to accidents such as fire, natural calamities or perils. Home insurance can also cover other instances like earthquakes, lightning and so on.

Some people believe that they do not require general insurance policies as they could save enough money to replace their assets even if anything happens to them. However, you will have to consider a situation when you have to spend all the money you have saved in your life, just to pay for medical bills or to repair a car that is beyond repair. Insurance is very important as it makes sure that you are financially secure to face any type of problem in life. A general insurance company would offer various types of insurance that could secure your health, travel, vehicle and home. The convenient part here is that you could purchase all of these insurance policies online nowadays. 

No matter how healthy we are or how well we are doing financially or how smooth life is, we would need insurance to protect us in case we will have to face bad days or bad times in life. This is because insurance would act as a safety net that could financially protect you and your family when you are financially down or needs money for your day-to-day survival. Having insurance could be an essential part of financial planning in life. It could save you from financial hardships in case of any unforeseen incident or circumstances that might happen in your life. The decision to buy insurance would be determined with the help of three factors – the benefits you would get from the policy, the requirement and the ability to pay the premium. 

NY Insurance Citation

NY Insurance Hub Agency

125 Wolf Rd STE 404 Albany, 

NY  12205 518-783-0105