What You Need To Know About Insurance

What You Need To Know About Insurance

What you​ need to​ know about insurance

Getting an insurance is​ one of​ those ‘life’ requirements that you​ should be looking into early in​ your career,​ especially now when you​ are still able to​ work and earn money. in​ addition to​ being better able to​ pay for the​ insurance,​ younger individuals also pay less. This is​ one of​ the​ principles of​ insurance. Since younger people are less likely to​ die,​ they are given cheaper rates as​ compared to​ older individuals.

Insurance protect financially you​ and your family in​ the​ future. Depending on​ the​ kind of​ insurance that you​ will choose to​ get,​ insurance can even provide for your health concerns,​ for your retirement and even for your death and burial.

But while it​ is​ important that we are protected against any unexpected eventualities,​ some people still shy away of​ availing insurance on​ their own,​ preferring their companies to​ do it​ for them. Like legal matters,​ all those insurance mumbo jumbo tend to​ confuse and sometimes even frighten people.

Here are some of​ he frequently asked questions about insurance.

What are the​ kinds of​ insurance?

There are two major types of​ insurance. the​ life and the​ nonlife insurance. the​ life insurance,​ as​ the​ name suggests,​ protects the​ family of​ the​ person in​ case something happens to​ him. When a​ person who is​ insured dies,​ the​ money that he insured will be given to​ the​ beneficiary that he has chosen.

The nonlife insurance is​ an insurance that protects properties. Under this category,​ there are several different types. There car insurances,​ which protect automobiles from wreckage in​ case of​ accidents; property insurance,​ which protects properties especially houses from fire and other forms of​ destruction; deposit insurance,​ which most banks have in​ order to​ protect their depositors from losing their money in​ case the​ bank suffers financial setbacks; and health insurance,​ which helps in​ covering for medical and hospital costs. Among the​ various nonlife insurance,​ the​ most popular is​ the​ health and car insurance.

Some insurance also provide for the​ future. Some of​ the​ insurances are retirement plans and death plans,​ which covers for burial costs.

What is​ the​ difference between a​ premium and a​ face amount?

Premium refers to​ the​ amount that you​ have to​ pay every year for the​ insurance. Some insurance companies also offer to​ divide the​ premium into monthly installments to​ help their clients. the​ face amount on​ the​ other hand is​ the​ amount that you​ have insured yourself into. For example,​ if​ the​ face amount in​ your policy is​ set at​ $500,​000,​ then your beneficiary will receive $500,​000 when you​ die.

What do you​ mean by double indemnity?

Some insurance policy offer an accidental clause that would double the​ face amount in​ case death has been established as​ accidental. This is​ done to​ protect the​ insured’s family in​ case of​ an untimely death. Double indemnity means that the​ face amount will be doubled when death is​ accidental.

Is the​ beneficiary always the​ legal spouse?

No. Contrary to​ popular opinion,​ it​ is​ not always the​ spouse who is​ the​ beneficiary. it​ is​ up to​ the​ person to​ choose,​ who he names as​ beneficiary. it​ can be any member of​ the​ family as​ long as​ insurable interest is​ established. if​ in​ case,​ the​ children are named beneficiaries and are still not in​ legal ages,​ a​ ardian will be named to​ assume control of​ the​ money for them.

What You Need To Know About Insurance

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