Do you know the impact of having an Insurance

Greetings to all and sundry, I am very excited to be here once again, and I welcome you all to my blog today. I would be writing on the topic "Insurance" as far as finance is concerned. We shall learn the different types of insurance we have and also the benefits that one earns when one joins an insurance company. In wasting no time, I would like to set the ball rolling.

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is a form of a contract in which an insurance company provides financial protection for an individual's losses. This is done by checking and agreeing to the terms and conditions applied. In most cases, people do put insurance on their life, cars, houses, and healthcare. When these properties are insured, it indicates that, if any of them get damaged and incurs a cost, the insurance company takes charge of that and makes the payment to restore its life span. Insurance companies take in-charge of damages, liability, accidents, and or injury. Insurance has three core components and they are; policy limit, premium, and deductible. We would dive into each of them here in this article.

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First of all, let's look at;

which indicates the maximum of payment that an insurer pays for a covered loss under a policy that was previously agreed on with terms and conditions. Sometimes it can be set per injury, or per period that is either annually, etc. There is something which is called the face value and it indicates the highest amount that an insurer can pay. This amount is paid to one's beneficiary after the death of the individual involved within the insurance policy. Higher policy limits indicate higher premiums and we should know this at the back of our minds when crossing the policy limits.

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Secondly, we look at;

as one of the components of insurance, as it refers to the price of the policy which is mostly the monthly price that the insurer sets based on certain criteria. For instance, Health insurance premiums: would entail, health status, sex, age, and location. Similarly, Home insurance premiums would entail; claims history, personal properties, coverage amounts, and location. With respect to the number of properties a person has with respect to a particular policy would indicate how higher the person would b paying for the claims. It should also be noted that each insurance company charges different premiums for the same policies, and as that, you need to search and find out which best fit for your pocket before joining any insurance company.

Lastly, we have the;

and this is the amount that an individual pays to the insurance company before the insurer pays the claim for him/her. Deductibles help to avoid claiming large volumes of insignificant and small claims from the insurance company. This is because anytime you want to claim for any small damages, you would need to pay at least half the money and the insurer pays the remaining half and as such, you would stay off from these small and insignificant claims. Mostly, policies that come along with high deductibles are less expensive than those with low deductibles. This is because it results in fewer claims and the individual would not be involved in making deductible payments all the time for any small claim. Deductibles are applied to either per claim or per policy depending on the type of policy or the insurance company.

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There are several insurance companies and we shall tackle a few here in this article. They include; home insurance, health insurance, life insurance, auto insurance, travel insurance, etc.

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Home insurance just as the name suggests, it is insurance that covers an individual's home and other personal properties against theft, natural disasters, vandalism, and other unexpected damages. It is also termed as homeowners insurance, and it should be noted that earthquakes and floods are not in charge of homeowner insurance policy so an individual should know how to stay away from such disasters. It is expected of everyone to have homeowner insurance even if they are renting in that house. In most cases, the owner of that house buys the homeowner insurance for the tenants so they pay for that including their bills.

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Health insurance, similarly as the name indicates, covers the health status of an individual including emergency medical costs, and routine medical checkup costs. Mostly this insurance comes along with either dental or vision service where one is needed to choose only one between the two. Most health insurance is purchased from the insurance company and or other individuals such as the federal Medicare, or the federal Health Insurance Marketplace. It is a good idea as a chronic patient to have an insurance company that helps and supports your regular or daily medical check-ups so you can limit your spending of money to cater to your health.

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With this type of insurance, the insurer pays an amount of money to the beneficiary of the individual. The beneficiary can be the spouse or the children, and with this, the individual would be required to pay premiums during his lifetime. It involves two types and they include permanent life insurance and term life insurance. The term life insurance covers an individual for about 10 - 20 years whilst the permanent has no specific endings.

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Just as the same indicates, it covers all the costs and losses of an individual with respect to travel. It includes; injuries. damages, rental homes, emergency healthcare coverage, cancellations of trips,

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Lastly, we have auto insurance which covers any auto-mobile-related accidents such as damaging another person's car in an accident. The insurer assists in the payment of all those damages and also if the individual caused injury to the other person, it covers that as well.

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After all the above points enumerated, I think you would probably have an idea of the benefits of insurance as of now. Insurance helps to protect oneself including the property and also the family. In addition, unexpected costs or expenses are covered by insurance companies.
Insurance companies provide an individual's survivors with a huge sum of money (family benefit) that they can use to cater for themselves after their death. That is all for today I am glad you stayed glued with me until the last subtopic of my article.

I would like to acknowledge the good effort of the leofinance team for such a wonderful project they have brought onto the hive platform and beyond. Kudus to the team for also running this zealy campaign smoothly. Thank you all for your time and attention.

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