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What is Insurance
Insurance is a concept that we all know, but don’t necessarily understand. It’s the idea of protecting yourself for the worst even though we hope it will never happen. The last thing anyone wants is to have to pay out of pocket for any damages or medical bills associated with an incident. Insurance is an essential tool for just about every aspect of our lives because it protects us from things we can’t control like accidents or theft while also helping us plan financially in case something bad does happen to you or your property.
If you’ve ever bought insurance for anything, it’s likely that you were told that insurance is a way to manage risk. That’s true, but it turns out that what makes insurance so special is how it manages risk.
Risk can be defined as the possibility of loss or injury. Insurance helps manage the possibility of financial loss due to the unknown—a hazard or threat that hasn’t happened yet. For example, a car crash could lead to losses in several different ways: physical harm to you or others; medical bills; property damage; legal fees; decreased income due to lost wages; emotional distress/pain and suffering; lost time away from work etc.
What is Business Insurance?
Business insurance provides coverage for the business owner’s property, employees and assets. It can also cover the business owner’s personal assets in case of loss. Business insurance can protect against liability claims that may arise from accidents, injuries or other incidents involving your company.
Business Insurance also known as referred to as Commercial Insurance, are common names for the two main components making up business insurance: Public Liability Insurance and Employers Liability.
The most common types of Business Insurance you should be aware of to insure you are protected:
• Public liability insurance
• Employers’ liability insurance
• Business interruption insurance
• Business contents insurance
• Product liability insurance
• Professional indemnity insurance
• Cyber insurance
• Plant and machinery insurance
What is Car Insurance?
Car insurance is a type of insurance that covers the cost of damage to or loss of a vehicle. It may also cover legal bills and medical expenses for injuries sustained in an accident, or for damage to other property. The specific terms vary by policy type.
Car insurance is mandatory. In the UK it is compulsory to have at least third-party liability coverage, although most consumers opt for Fully Comprehensive Insurance which is the highest level of protection covering: repair bills, medical expenses and damages to property.
Some insurers have specific coverage included, whilst others provide “add-ons” so it is always important to read up prior to purchasing a policy.
What is Home Insurance?
Home insurance is a policy that protects your property against damage or loss from things like natural disasters, fires, theft, and vandalism. As always, it’s important to know what’s covered under your policy before you buy it—you don’t want to later find out something key was excluded!
In addition to Home Insurance, there is contents insurance. Contents Insurance covers your personal and household possessions from areas such as loss, theft or damage. Items that can be covered under Contents Insurance are items like: Jewellery, Clothes, Furniture and Electrical items. You should look to itemize your household contents and ensure you provide accurate pricing of your possessions to your insurer.
What is Pet Insurance?
Pets are an important part of our lives, and popularity of our furry friends is continuing to rise. Figures released in March 2021 showed that 3.2million pets were bought by UK households during lockdown.
Pet Insurance can help you save money on your pet’s medical expenses. In fact, most people who have pet insurance say they wouldn’t be able to afford their pets’ veterinary care without it. For example, if your dog gets sick or has an accident and needs surgery, the cost could easily run into the thousands.
The average annual premium for a dog is £274. The average annual premium for a cat is £125. So yes, pet insurance is expensive! But when you consider that some procedures like dentistry and joint replacement surgery costing thousands of pounds, sometimes more, it’s not surprising that people want to protect themselves from those kinds of expenses and to ensure their beloved pet can have a full and happy life.
What is Life Insurance?
Never a fun topic to discuss, but important none the less. Life insurance is a contract between you and an insurance company that pays out money to your beneficiaries in the event of your death. The amount of money paid out depends on your age, health, and other factors when you apply for life insurance.
The main purpose of life insurance is to provide a steady stream of income to your family if something happens to you, such as an unexpected death or disability. Life insurance can also help pay off debts like mortgages after someone dies.
You have several options when it comes to purchasing a policy:
Level term life insurance – this policy will pay out as a lump sum to your beneficiaries when you die. The amount of cover received will stay the same throughout the policy term. This money could then be used to help your family pay off any debts and pay for regular bills.
Decreasing term life insurance – this policy will also pay out a lump sum to your beneficiaries when you die. The level of cover will reduce in line with payments on your mortgage. This type of policy is normally cheaper than Level term life insurance because the level of cover reduces over time and should only be taken to protect a mortgage.
Whole of life insurance – as the name suggests, covers you for the entirety of your life. This policy will pay out a lump sum when you die, providing you have kept up with your monthly premiums. It can be used to help leave money behind for things such as funeral costs or to offset the cost of inheritance tax.
Joint life insurance – covers two people, normally a couple. If one of the policyholders were to die, the pay-out would be settled and the cover on the remaining policyholder would stop. This type of cover can be taken out on both a decreasing term and level term basis.
Over 50’s life insurance – is a type of whole of life insurance and usually offers smaller levels of cover as it is mainly taken out to protect funeral costs or to leave a small amount of money behind to family. Providing you are between the ages of 50-80, you can apply for cover without answering any medical questions, making it very popular.
What is Health Insurance?
Health Insurance also known Private Medical Insurance (PMI) is designed to cover you for the costs of private medical treatment. Medical related insurances have become increasingly popular due to current issues surrounding the NHS being overwhelmed.
Private Medical Insurance allows policy holders access to early consultations and fast treatment times without being subjected to long waiting lists. It may also allow treatment in a private hospital from some of the country’s top consultants and specialists.
When looking at Health Insurance there are various levels of cover available such as, diagnostics or treatment, cancer care, therapies, dental and optical care. Most insurance companies offer policy holders to pick and choose the elements of care they would most benefit from. You also have the option to opt for a fully comprehensive policy which includes everything. Some policies will also allow those with pre-existing conditions to be insured, as long as there have been no symptoms in the past five years.
