Basic Finance Care Finance tips
Insurance policies provide cover against various types of contingencies. The contingencies could be like damage to the house, loss of vehicle, loss of goods, loss of life etc. Life can be extremely cruel at times. It is also full of uncertainties that could arise at any time.
In order to make sure that you are not affected by various unforeseen events of life, it is would be logical to get insured against various risks. The main advantage of various insurance policies is that the risk gets shared over a large number of insured people and each person has to pay only a small amount of premium.
Insurance companies follow various principles such as:
Indemnity- The insurance company compensates a person only up to the extent he or she is insured. The insurance company is not liable for losses suffered beyond that fixed amount.
Utmost good faith- The insurance policies tie the insurer and the insured in a bond of honesty and fairness. They must not hide any vital information from each other.
Insurable interest- This principle states that insured must have some financial benefits from the property or goods that he wants to get insured. If he doesn’t have any interest in the property, goods or person that he wants to get insured then there could be no insurance agreement.
Causa Proxima- This principle states that the cause of loss must be among the list of causes mentioned in the initial insurance contract for which compensation is allowed.
Affordable premium- Since a very large number of people apply for insurance policies, so the risks get shared among all of them. So the amount of premium that has to be paid on a monthly or yearly basis is an affordable amount.
Accidental loss- The losses that can be insured must be accidental by nature. They must not be the outcome of self-derogatory activities like gambling or other speculative activities.
Calculable nature- The loss which has to be insured must be calculable. It must be numerically calculable. Losses which cannot be calculated numerically cannot be insured.
The following are some insurance coverage policies that can come handy to you, in the present future.
Auto insurance
This kind of insurance protects a person from financial losses arising out of contingencies related to damage to vehicles. An insured person would get compensated in case of damage caused to a vehicle in an accident or in case of theft of a vehicle. Your personal car could probably be the most valuable investment and asset of yours. Therefore, during road mishaps, accidents, and other unfortunate situations, it is always beneficial to cover your car with auto insurance coverage plan that is just the best for you.
In case of an accident, an insured person would also get compensated for injuries suffered, loss of wages etc apart from the maintenance expenses of the vehicle.
Home or property insurance
This kind of insurance provides indemnity in case of damage to home or property arising due to various factors like flood, earthquake, accidental fire etc. In the current scenario, and considering the dynamics of real estate market, the occurrence of casualties and natural disasters, accidents, and mishaps, a home or property insurance is definitely another form of coverage that you must be keen on.
Health insurance
Health insurance policies aid a person in case of expensive medical treatments. There are different types of health insurance plans that you can make use of. The type of health coverage you will receive after a specific tenure has passed by will be determined by the type of health insurance plan you choose and the amount of premium you pay.
Life insurance
These insurance policies provide monetary compensation to a deceased family in case of untimely or unexpected death. Having a life insurance will take care of your family member’s needs and requirements in the best way possible. This includes taking care of the deceased family’s existing expenses, funeral expenses, and other financial instabilities. The two basic types of life insurances are:
- Traditional Whole Life
- Term Life
Long-term disability coverage
While most people might feel that taking long-term disability coverage would be a waste of time and money, reports from the Social Security Administration show that it’s not. Disability can occur anytime and without no reason at all, and it’s always better to stay safe than sorry. Because disability has become a major concern for the society, the government offers long-term disability insurance coverage that can take care of your needs, finances, and lifestyle after you are officially struck by a disabled medical condition.
Conclusion
You might feel that paying premiums for such insurance coverage plans is taking a huge chunk out of your pocket, failing to do so might lead to more unfortunate circumstances in the future. To keep your present and future happy, convenient, and completely risk-free, essential insurance coverage such as the above can help take care of you and your loved ones in the most economical way.
