Insurance is a financial safety net that can help you and your family recover after an unfortunate event such as fire, theft, lawsuit or car accident. When you purchase insurance, you receive a certificate of insurance, which is a legal contract between you and the insurance company. And if you incur a loss covered by your policy and file a claim, the insurance will pay either you or a designated recipient, called the beneficiary, according to the terms of your policy.
The hardest thing about insurance is paying for something you hope you will never use.
Nobody wants anything bad to happen to them. However, taking a loss without insurance can put you in financial trouble.
Insurance is an important financial product. Knowing that financial support is available after a natural disaster or accident can help you worry less and recover faster.
When it comes to life insurance, this could mean your family doesn’t have to move out of the house or that your kids can afford to go to college. For auto insurance, it could mean you have extra cash in hand to help pay for repairs or a replacement vehicle after an accident. Insurance can help keep your life on track, as much as possible, after something bad derails it.
Your independent insurance agent is a great resource to learn more about the benefits of insurance, as well as the benefits in your specific insurance policy. For example, you may have access to perks such as free roadside assistance, risk control consulting for businesses or cash value in a life insurance policy, in addition to your insurance coverage.
And in some cases, like auto insurance and workers’ compensation, you may be required by law to have insurance in order to protect others.
Insurance is essentially a gigantic rainy day fund shared by many people (called policyholders) and managed by an insurance carrier. The insurance company uses money collected (called premium) from its policyholders and other investments to pay for its operations and to fulfill its promise to policyholders when they file a claim.
Because of the unpredictable nature of natural disasters — like tornadoes, hail, wildfires and hurricanes, and everyday disasters such as fender benders and kitchen fires — an insurance company’s main goal is to remain financially strong enough to handle anything that comes its policyholders’ way.
Here are some things to consider when choosing an insurance company to work with:
Insurance coverage.
What type of insurance does the company offer? Can I purchase any insurance through the company and get a discount?
Financial Strength.
Can the company pay the bill? To check the company's financial strength, contact AM Best, a US credit rating agency.
Agent model.
Need help from a local insurance agent? Or do you prefer to manage your insurance yourself?
Customer Service.
Do other people recommend this company? What do people say about it in online customer reviews?
.svg_20230202161558723_42.png){kind=icon}
