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
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 non-life 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 non-life 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 non-life insurance, the most popular is the health and car
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.
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