Insurance is meant to protect you from financial loss in case of unexpected events. It is the easiest, yet most misunderstood form of risk management.
When you purchase insurance, you basically transfer the risk of financial loss from your company to the insurance company you work with. In doing so, you can choose from three main types of insurance: personal, general and business insurance.
[ctt template=”9″ link=”RfNAS” via=”no” ]When you purchase insurance, you basically transfer the risk of financial loss from your company to the insurance company.[/ctt]
Let’s see what each type of insurance does.
Personal insurance provides protection to individuals with the aim of covering for their health or healthcare costs. It usually includes the following sub-types of insurance:
- Life insurance
- Total and permanent disability insurance
- Trauma insurance
- Income protection insurance
- Private health insurance
General insurance protects your goods. Under this type of insurance you can protect your tangible assets such as car, boat, house, home contents and so on. There are several types of insurance policies that you can opt for depending on your priorities and goals.
Finally, business insurance is created with the aim of protecting your capital, revenue and business assets. It can also be used to protect your staff, reduce risk exposure through Public Liability or Professional Indemnity insurances.
You might also be interested in: Five Essential Things To Understand About Being In Business
Regardless of what insurance type you have, it is recommended that you review your insurance policies at least once every year and decide whether you want to continue with the plan you have or opt for another package.
Here are 5 things you can look at when you review your insurance policy:
- Set a calendar reminder that prompts you to review your policy at least one month before it expires. This gives you plenty of time to go through the policy information and decide whether you want to continue with the current plan or if you want an update.
- Look at the insured sum and the type of cover that your insurance provides. Is it enough for your needs? If not, discuss the changes with your insurance provider.
- Make sure the information you’ve provided to your insurer or financial adviser is still up to date.
- The competition on the insurance market is sky high, so you may be tempted to find a better deal at another insurer. Before switching to a different insurance provider, do your homework: whilst you may be offered a better price, the new deal might not give you all the coverage you need. Read the insurance policy carefully.
- Make it a habit to review your insurance policy on a regular basis, with an emphasis on those time frames when important changes occur in your personal or professional life. If you have made a decision to change something in your insurance, it is always a good idea to ask for the help of a professional insurance agent. They will give you the peace of mind that you are making the right decision.
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