There are many types of insurance just like there are many possible causes for liability whether for individuals or businesses. Most people have heard about home insurance, life insurance, auto insurance and so on. Other categories exist but they may not be as heavily marketed as the others. For instance, there’s pollution insurance, earthquake insurance, alien abduction insurance or even the zombie fund.
Insurance can be broken down into three main fields:
Assets and revenue insurance
People insurance
Liability insurance
The terms are pretty self-explanatory, but the details in each policy may be a little more complex. Different insurers offer different packages. Some are tailored to fit a particular target market and others are actually tailored to fit specific clients.
If, at one point or the other, you’ve asked yourself 'what does that mean?', then you might want to look at the terms below just in case you come across any of them.
Deductible
This is basically the amount of money you would be required to pay (usually an annual amount) before you start to get any of the benefits. Deductible amounts are different- there are family amounts, and there are family deductibles as well.
Co-insurance
A percentage of the actual payment; it is sometimes broken down to about 80% over 20%, meaning the insured would have to pay 20% for a specific procedure and the insurance company would take care of the rest. Co-payments refer to specific amounts the insured has to pay during the service.
Out-of-pocket
These are added expenses that the insured have to take care of up front and out of their own pocket.
Here are some basic factors to consider before setting out to purchase a new policy:
Annual income
Annual deductible
Specific services covered by the policy
Could you shop around for a cheap policy?
It should be a valid option, but unfortunately, everyone does not have the freedom to look for a better offer outside of their network. A lot of study should go into any particular policy before purchasing the cover just to make sure you don’t get into a tricky situation later on.
Author Bio: Maria Benson, a blogger researching on insurance claims. She is currently doing a thesis on PPI claim. In her spare time, she reads avidly.
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