General Insurance And What You Need To Know
Differentiating Insurance and Assurance
Today there exists a grave misconception with these two terms ‘assurance’ and ‘insurance’ with many people tending to pass them off as tantamount. However, while there must exist a distinctive difference between the two, an in-depth insight into their meanings and applications helps settle the conflict. Trying to break the ice here, assurance is given for longer periods as assertion for something that will inevitably happen like death while insurance is for a limited time as it’s offered to cover for something that could happen, again such as death but this being for a fixed duration.
Life assurance for example can be termed as assurance insurance as it is to be paid out when you die and it’s not based on likelihood but ‘assurance’ meaning it doesn’t tag along a time frame. On the other hand a Life insurance cover is to be paid out in the event the insured die within a stipulated time frame meaning it’s viable for only a fixed term. Maybe this is where most people misinterpret the two.
What Are the Various Types of Insurance to Consider?
In this 21st century where everything is changing by day, the list of aspects in need of insurance increases at the same rate with evolving new insurance policies never heard of before. The unpredictive nature of life deems the need to protect ourselves financially against the inevitable wanting. While you will definitely need a financial advisor to take you through the maze entailing insurance, it is of prime importance to be able to analyze your life to determine what insurance cover you need and which can pass as optional.
Insurance companies have however realized how baffling it has become for consumers to choose their financial products; many firms have resolved to provide detailed information guides directly through their customer support and indirectly through websites. Factors such as children, lifestyle, employment benefits and age highly determine your insurance portfolio and with the right financial guide, you can easily settle on the most compelling insurance plan.
What Are the Various Types of Insurance?
Surely death has no forewarning and the best decision that anyone can make is to ensure that if a day comes when they are no more, their family will be well protected. This is therefore a financial cover that is meant to decoy for your normal financial provision in a way making it feel like you never left, it would be critical if your untimely death would pose financial constraints on your loved ones and especially your spouse and children.
However, this policy is neither limited to unmarried persons who sometimes take up a life insurance cover to warrant a mortgage or loan in the event they die and have unpaid dues. A life insurance cover however is based on a fixed duration and is only payable in case you die within the policy period and respectively if you luckily happen to outlive the policy period, it holds no more residual value and neither can it be cashed out.
Home Owners Insurance
This insurance policy combines a variety of personal insurance protections including losses that could occur to one’s home, loss of other personal possessions belonging to the home owner together with liability insurance in the event an accident happens in the hands of the home owner within the policy duration.
The cost of homeowners insurance depends on how much would be the home replacement cost and any other additional endorsements attached to the policy. This agreement is a contract of indemnity meaning it will put the insured back to their prior state before the loss occurred.
Accidents and bad health are never anticipated and in the event they knock in, we all know too well the dent medical bills can leave on your current finances. A health insurance cover is issued against the threat of incurring medical expenses. An insurer, by an informed estimate of the overall risk extent of health care and health expenses among a selected group can be able to develop a routine policy structure.
This policy provides payment or compensation in the event of an injury or sickness and often includes insurance for losses from accidents, disability, medical expenses, resulted death or dismemberment.
Your car just like any other assets is of immense value and in the event that it gets damaged through an accident without insurance cover, there is no telling where it would leave your savings. Auto insurance protects a car owner against financial loss if their car gets into an accident. The insurance company after close leverage determines whether it’s more profitable to repair your car or replace it. In the event it is replaced, your damaged car will probably end up at an insurance auto auction where auctioning it will probably maximize the return rather than having it crushed at a scrap yard. Most auto insurance companies offer a 6-12 months policy deal on auto insurance which often tags along coverage provision for property, liability and medical aspects.
• Property coverage is meant to pay for theft or damage to your car
• Medical coverage takes care of the cost of treating sustained injuries.
• Liability coverage represents your legal responsibility to any other involved passenger’s body or property damage.
Do You Need Auto Insurance?
You know regardless of the fact that it’s a state requirement for every car owner to have auto owners insurance; many people will still violate that law. Can you imagine if upon getting into a car accident, are faced with the huge burden of replacing your car from your savings? Derailing right? With auto insurance however, replacing your car and property damage weighs down on your insurer instead and you have no reason to jeopardize your finances, so it does offer you financial protection.
Again think of what could happen if you are caught bending the law driving around without insurance. While getting a ticket is nothing but the icing on the bitter cake, you could easily get your vehicle impounded, its registration and driver’s license suspended and better believe that being a law abiding citizen sounds much better
Tips to Saving on Auto Insurance
With so much scam in today’s market, you might easily fall victim of a complete rip-off especially when you endear doing business with cheap auto insurance companies while trying to cut down on the overall cost. It is therefore highly recommended that you research thoroughly on the various auto insurance companies out there so that you settle on the very best auto insurance company that pose a valuable return on investment. While saving up for auto insurance today can get quite frustrating, here are some effective tips to consider:-
Compare Price and Quality- The first steps towards insuring your car is requesting for a car insurance quote from the best auto insurance companies out there so you can make your sound analysis.
Car Safety Aspects- Auto insurance companies provide discounts on cars with features that reduce the risk of theft or injury so if it’s possible go for a car with safety features aboard.
Driver Safety Course- Insurance companies waive down the total cost of car insurance in the event you as the driver have completed and qualified a driver safety course and possess impeccable track record on the road.
Bundling of Insurance Portfolio- Having a variety of insurance policies such as health, auto, homeowners and life insurance in the same company helps save money big time.
What Are the Obvious Parties to Insurance?
When it comes to insurance, there are various parties involved each with their prime role to play to help solemnize the protection agreement. While each works either dependently or independently from the other, each impact on the other in more ways than one. The variety includes:-
Insurer- This is the party in the insurance plan who takes liable indemnity for losses towards just compensation.
Insured- In this case the insured is often the victim, the person or property under issuance of the insurance policy.
Quote- This in terms of insurance represents a close estimate of what your rate could be dealing with a potential insurer. For example, many people often prefer to get variety of car insurance quotes from several potential auto insurers so they can be able to compare their offers and benefits.
Beneficiary- This like in the case of life insurance is the person who benefits from the insurance plan, say the immediate dependent of the deceased whose financial security remains intact after their departure.
Premium- This is an affiliate party of insurance in the sense that it is used to refer to the cost or amount paid out for the insurance policy.
How to Spot a Reliable Insurance Company
Given the high cost of investment auto insurance covers impose, the thought of sourcing for a reputable auto insurance company should always be well retaliated. While most people lack the in-depth knowledge when it comes to discerning a legit company from a mediocre service provider, here are few things to consider when planning to purchase an auto insurance cover:-
Years in the market- You can easily spot a reliable insurance company from the number of years they have been operational as this also reflects on their experience and exposure to the same field.
Reputation- A great auto insurance company boasts of an admirable reputation from recommendation by friends or past clients of the company.
Professionalism- The customer service of any company goes a long way in projecting a client’s first impression. A reliable auto insurance company offers limitless 24/7 customer support ready to take you through the variety of services they offer. To them, your satisfaction is their prime motive.
Resources and capital- A reliable insurer is stable on finances and you can easily bet your fate on them without worry that they might go bankrupt the next minute spelling a complete waste of your hard earned investment. Can you imagine if you laid your utmost fate on a complete impulse?
Permanent location- A reputable auto insurance company should be located in a permanent physical building where you can walk in and engage in dialogue. Upon issuance of your car insurance quote, nothing compels better than a deal that is up-close and with no hidden agendas.
With a viable idea of what to look out for when considering purchasing an insurance cover, you can go direct and get auto insurance. It’s also rather timely to get a close-up insight of some of the most popular and reputable insurance companies in the United States. Here is a list to consider:-
1. American International Group (AIG) – This is an American multinational company with a clientele base of over 80 million and employing over 64,000 persons in over 90 countries worldwide.
2. American National Insurance Company- This is a major insurance company located in Galveston, Texas and operating in all the 50 United States of America, Puerto Rico, American Samoa and the District of Columbia.
3. Auto Owners Insurance- This is a group of reputable auto insurance companies based in Michigan and west of Lansing offering property and casualty insurance including life insurance and commercial lines.
4. Metlife (Metropolitan Life Insurance Company)- Being among one of the largest global providers of insurance policies, Metlife is a holding unison of the Metropolitan Life Insurance Company and its affiliates boasting of over 90 million customers in over 60 countries worldwide.
5. New York Life Insurance Company- This indeed is the largest among mutual life insurance companies in the U.S and among one of the largest life insurance companies globally with over $380 billion assets under management and $19 billion in surplus.
6. United Automobile Insurance Company- United Auto Insurance, a leading casualty and property insurance specializes in automobile insurance and through their affiliates provides various insurance related services such as premium finance, advanced point of sale solution and claims processing.
7. United Health Group- This is a diversified health care insurance company based in Minnesota, U.S offering health plans and serving a clientele of over 70 million nationwide.
8. Elephant Auto Insurance – Another insurance company, providing services such as auto insurance, home owner insurance, life insurance, motorcycle insurance and so on. Elephant Auto Insurance office address is at 140 Eastshore Dr, Glen Allen, VA 23059.