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Insurance can be seen almost anywhere nowadays, in television, magazines, newspapers, online, outside there are insurance ads on billboards with pictures of celebrities, frequently it can also be advertised on the radio. Insurance companies keep on coming up with witty and humorous ways of attracting customers by utilizing funny or catchy lines used in ads in order to hook them into getting free car insurance quotes for drivers, for example. Despite all the relentless efforts of these insurance companies, the majority of the people do not pay any of their interest. They laugh at the catchy lines, they observe it on televisions, but some people still do not financially protect themselves from potential financial risks.
Insurance was made to protect the customer financially; in this case, the policyholder, from future financial loss through its insurance policies. It serves as a contract between the insurer or the insurance company and the policyholder, indicating the situations or circumstances where these insurance policies can be applied. The insurance company will then compensate for the policyholder.
5 important types of insurance
Insurance companies usually offer these common types of insurance to possible policyholders after ascertaining the policyholder’s financial situations and other information needed to apply for an insurance policy. These four common types are life insurance, health insurance, Long-Term Disability Coverage, auto insurance and business insurance.
Life Insurance
Life Insurance is the agreement between the insurer and the policyholder. The latter will pay a premium, and the former will use such a premium to the latter’s beneficiaries upon his death.
Health Insurance
Next is health insurance, where the insurer will pay the majority of the medical bills of the policyholder, on the hospital, the doctor that he or she chooses.
Auto Insurance
Auto insurance refers to an insurance policy that covers drivers from damages, accidents and financial loss caused by driving their vehicle. Having a minimum liability car insurance is mandatory in most states in the U.S. ; There are many different types of auto insurance to touch on in just one paragraph, but this is the basis of it. If you want to learn more, don’t know where to start or which coverage to pick, here’s a comprehensive guide from Insuranks on car insurance.
Business Insurance
If you own a business, you must be familiar with all of the financial risks and hardships that any business may face. By getting even the most basic, cheap business insurance policy that may start from around $20 or $30 a month, you can cover your business from many financial risks and “surprises” along the way that may disrupt your business operation and sometimes even risk its existence entirely.
Long-Term Disability Insurance
Lastly, long-term disability insurance covers the financial requirement to provide income replacement if workers were rendered unable to work by illness or injury.
Why everyone needs insurance
Knowing insurance policies will surely make you wonder why many people don’t have an insurance policy yet, or worse, do not want to have. One reason is the cost. People thought having an insurance policy is too expensive, especially maintaining it. Since they cannot find a slot in their budget, which includes house rent, utilities, and other expenses, people forego the idea of insurance. This led to a misconception as to what really is the amount of maintaining the cheapest life insurance possible. Another reason is having other financial priorities. These include saving for retirement, for their funeral cost, and inheritance. These financial priorities were all listed or covered by a life insurance policy. So why do they still not pursue life insurance policies? Trust issues. Many people do not trust insurers or insurance companies. They fear that once providing enough payment for a premium, these companies will suddenly go bankrupt or, worse, disappear. Another reason is its demand for attention. People tend to think about life insurance or other insurance policies when they start or have already built a family.
With all the tasks needed to do inside a house, cleaning, cooking, and all other duties, including taking care of your child, continuing to think about insurance policies will be the least of your worries, especially in a not well-off household. Some people don’t like to talk about their deaths, which will eventually come up when life insurance policies are talked about. They are still not ready to talk about saving money for a more prepared end. This will bring up an uncomfortable air towards them. Being told to prepare because of the uncertainty of death is literally challenging to understand to some. Some people refuse to be insured because they believe they do not need it, as they do not have families or children depending on them. These are commonly young people or middle-aged people with their children all grown up with stable and steady income to boot.
Takeaway
Insurance policies seem easy to understand and are undeniably beneficial to a policyholder, but these reasons why people do have one yet are still valid. It may be enough for these people to deny the pursuit of insurance policies because of their experiences or financial capabilities to maintain such policies. Nevertheless, these reasons will not subside unless a good insurance company takes its time to explain little by little to these people the benefits of being insured, especially in modern times.
