How to choose the right insurance cover?

THEinsurance is a means of managing risk. When you purchase insurance coverage, you transfer the cost of a potential loss to the insurance company in exchange for a fee, called premium.

Insurance companies invest the funds safely, so that they can grow and pay out in the event of a claim. Life insurance, car insurance, home insurance… there is a lot to consider for each.

To help you get started, we've created this guide. Purchasing insurance is a major investment and you want to invest wisely. How to find the best business insurance for your business? Here are some things to consider before making your decision.

First, two terms that relate to all types of insurance, and that should be kept in mind. But before you start, here's how to improve the conversion rate in your online store.

???? The key concepts in insurance

🔰 Premium

These are the monthly fees you pay to be insured. In other words, it is the actual cost the customer has to pay to qualify for policy benefits.

Normally, the higher the premium, the more generous the coverage. In some cases, however, companies charge higher premiums when they suspect there may be a higher risk.

🔰 Franchise

The part paid by the insured when a claim occurs (accident, fire, etc.). Let's say the deductible is $1 000 and that the damage caused is $60 000. They (the insurer) will pay $ 59 000.

???? Home insurance

Home insurance is a type of insurance that regroup » various things, but each is different. It includes housing, personal property insurance, loss of use, civil liability and medical coverage.

🔰 Accommodation

The cost the insurance company will pay to completely rebuild or replace the property. That is, when the house is completely destroyed for some reason.

Normally, this is the same amount that the bank lends you to cover the mortgage. For example, if you make an upfront payment of $10 to buy a house worth $000 and the bank lends you $250, this is the sum of the accommodation.

🔰 Personal property insurance

This part of the insurance covers everything inside the house (furniture, jewelry, appliances), as well as other belongings that were not part of the original construction, but are inside the property. For example, patio fence.

🔰 Loss of use

Let's say something happens that makes your house uninhabitable for a while.

While repairs are in progress, this aspect of home insurance is money given to the policyholder to stay in a hotel or other property of the same class as the one in which they lived.

🔰 Payment and medical liability

It is a component of home insurance that covers the medical expenses of a person inside the dwelling. Let's say you invite a person into your home and that person drops out.

As they are on your property, you are responsible for their medical expenses. This may be related to, but should not be confused with, the following component.

However, if that person who fell in your home can't work or needs surgery, " part of that is medical costs, which are already covered, but if they're suing you for not being able to work, then that's covered by another part of the liability ».

???? life insurance

Those of us who immigrated from Latin America do not consider it so important, but in the United States this type of insurance can be very useful in cases where, for example, a property is in the name of a married couple.

If one of them dies, the other can continue to make the payments, even if he has lost income as a family.

There are different types of life insurance. But there are two main types- term and whole life insurance. Everyone has their advantages and its disadvantages.

🔰 Duration

These policies are for a fixed term. It can be 10, 20 or 30 years. It's relatively cheap. you can touch $ 250 or $ 000 for a couple, and pay 35 $ to 40 $ per month, for example.

Once this period (the term) has elapsed, assuming there have been no unfortunate deaths, the policy expires, unless you wish to renew it.

🔰 Whole life insurance

It is a little more expensive, but it remains valid until the death of the person. The advantage is that you know you will receive this amount.

The downside is that, if the person lives several years, she may end up paying more premiums than the family will receive at the time of her death.

???? car insurance

There are two main types of car insurance. The first is mandatory and covers all damage you may cause to others following an accident or a malfunction of your vehicle.

La second is optional, and this is to protect your car from other types of incidents.

🔰 Motor vehicle liability insurance

It is mandatory in almost all US states. It has two parts: one covers damage caused to others (bodily injury) and the other which covers damage caused to the property of others.

You can't drive with the risk of injuring another person, and that person ending up with a medical bill without the means to pay it.

🔰 Multi-risk and Collision

As with home insurance, it is a " lump sum two-pronged. Collision refers to the damage done to your car in the event of an accident.

Complete is anything that is not an accident, such as fire, theft, or flood. This is the type of insurance that is required when your car is financed by a bank or by an authorized dealer.

As with other types of policies, they tend to have a deductible. In other words, it is the share that the insured must pay, whether he is responsible or not, to cover the damage caused to his car.

???? 7 tips for finding the right insurance coverage

🔰 Compare the prices

There are many insurance companies and a wide variety of insurance coverage. If you are looking for clarification, you may consider working with an agent (who sells insurance for a single company) or through an insurance broker (who represents multiple insurance companies) instead of 'buy directly online.

🔰 Only buy insurance to maintain your current standard of living

You don't need insurance for events that won't put a strain on your finances. Start with your basic needs (home, car, business), then incorporate other needs (cyber, professional liability).

You can always add coverage later for something if you change your mind. You can minimize your risk and maximize your savings by purchasing insurance tailored to your needs today.

🔰 Ask your insurer what the policy does not cover

Each insurance policy lists the risks not covered, called " you will have to do so by using ". Ask your insurer to explain your policy exclusions to you upfront, saving you the stress and frustration of discovering them after you suffer damage or loss.

🔰 Consider bundling multiple policies with one insurance company

It may be worth combining several policies with a single insurance company.

If you are looking to insure multiple vehicles or obtain multiple types of corporate coverage, you may want to find a single insurance provider that offers multiple products – policy discounts or loyalty programs.

🔰 Review your insurance needs each year

Your insurance policy will evolve as your needs change. Maybe you've bought a new vehicle since getting auto insurance for your primary vehicle, or maybe you've started running a small business out of your home.

When you have made a change, it is important to consider whether your policy needs to adapt to the new risk exposures.

Keep in touch with your insurance provider or broker to stay informed about your insurance needs.

🔰 Don't Defer Payments

Failure to pay is considered a " bad risk which may result in a higher rate. If you decide not to renew your policy, you must immediately inform the insurer in writing.

Keep in mind that changing insurance providers before your policy renews may result in premature cancellation penalty charges.

???? Take steps to minimize risk and prevent loss

Risk management can greatly help you stay protected. If you own a home, consider performing seasonal maintenance checks.

If you have a home-based business, consider improving your digital defenses to better protect against cybercrime. Good planning and protection can help you stay ahead of risks in your daily operations.

However, I cannot leave you without offering you my training on personal training. Click here to download the ultimate guide to personal finance management.

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