Insurance is a way of protection against financial loss. It’s a form of secondary risk management, primarily intended to mitigate the risk of an uncertain or contingent gain. Insurance provides coverage and protects against loss when your investments, products, and services become subjected to loss from some event or element outside your control. Insurance works when you need it most. There are many ways to get insurance, and in order to get the best deals, you need to know what you want. Here are some basic ideas on the subject of insurance. Miller Hanover Insurance has some nice tips on this.
The primary elements of insurance policies are the insurer and the insured. In this day and age, it is common for many types of insurance policies to be sold online. This is convenient for many people, and many people prefer dealing exclusively with online vendors. However, it can also be frustrating for many types of consumers who find themselves drawn into the hype and complexity of many types of insurance policies sold online. So, before purchasing any type of insurance policy online, here are some pointers to keep in mind.
First, understand the ins and outs of life insurance. You must understand the basics of your policy limit, premiums, and claim settlement mechanisms. Understanding these elements will ensure that you don’t overpay, underpay, or otherwise get stuck with an inadequate policy or a sub-par insurer. Also, understand that just because a insurer advertises a low premium doesn’t mean you should accept it. Check the fine print!
Second, set a high deductible. Insurance companies like to insure long-term clients. Insurers usually set a deductible based upon the odds of the insured paying his claim in the first place. However, there are many types of policies with low premiums that have no built-in lifetime deductibles. High deductibles are a vital aspect of any insurance policy, as any money left over at the end of the contract can be used toward the deductible.
Third, review and understand the policy limit. Insurance policies generally stipulate a maximum amount for which they will settle a claim, up to the amount of your policy limit. Review the details of the policy limit to ensure that the amount for which you are sued is enough to cover your expenses and that your insurance company won’t go out of business due to not meeting their financial obligations. Also be sure to investigate any possible exceptions that may apply and consider whether they would be of help in a particular situation.
Fourth, understand your premium and what it means. Most insurance policies have a standard rate for premium that has been set for several years. However, this rate fluctuates with each insurer. Be sure to review your premium and ask your insurance company how it factors in changes in your circumstances. If you find that your current premium is not enough to cover your needs, it may be time to consider switching to another insurer.
Fifth, consider how you plan to pay your taxes. If you are self-employed or work through an agency, you may be required to pay yourself via your own income tax return. If you do not have an income tax refund option, it is advisable to consider increasing your tax deduction. This could include additional insurance premium payments, further investments in your business, or a larger amount for your state and local taxes. The amount you save on your income tax due will help to cover the additional premium payments on your insurance policy.
These five risk factors are fundamental parts of any affordable insurance portfolio. Consider them when selecting your carriers and you’ll have peace of mind knowing that your policy will not only provide you with adequate coverage but will also save you money in premiums. In addition, you’ll be able to take advantage of existing tax laws that can lower your premium payments.Read More