#club100💪|| Insurance Policy, A Better Way To Secure Your Future ||#club100💪

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Insurance

Insurance is a way of protection against future loss. When an individual goes in for an insurance policy, his or her purchases protection against unexpected losses be it financial or property loss.

The insurance company pays you or the beneficiary if something undesirable occurs.
An individual who has not subscribed to any insurance policy risks responsibilities for all related costs. Being covered by the right insurance makes a big difference in your life. An insurance policy is a written document or contract held between the policyholder (an individual or company) and the
insurer (the insurance company).

The policyholder may not necessarily be the insured individual. Consider this example, when a firm buys a life insurance for an
employee, the employee becomes the insured of whiles the company is the policyholder.

How insurance reduces your financial risk?

Imagine you are driving your car, and accidentally collides with a vehicle on a highway which damages your car. With an insurance auto insurance policy, the insurance company will bear the cost of repairing your car.

Now, imagine a pipeline gets burst in your bathroom, damaging ever
in your bedroom next to it. Once you have secured a homeowner’s or renter’s
insurance, the insurance company would have to replace if not all, some of the damaged properties.

How does an insurance policy work?

Insurance policies often lasts for a specific period of time which is termed as policy term. At the close of the term, one has to renew the policy by paying a premium. Payments could be done on monthly basis whiles other could be paid

paid once or twice within a year.
Aside the premiums, most insurance policies include deductibles. Deductibles are the payments you need to make, before the insurance company pays their share. For example, if you have a Ghs4000 deductible on your homeowner’s policy and a storm causes Ghs2000 in damage, you will pay Ghs500 and your insurance
company will pay Ghs1,500. Basically, higher deductible means a lower insurance premium.

What are common types of insurance?

There are various types of insurance policies, a few are explained below:

Health insurance: assist you to cater for hospitals bills. Once you subscribe to a health insurance policy, you agree to your health insurer to pay part of medical expenses as a result of illness .

Life insurance: Pays the beneficiary an amount of money when you pass-on.

Disability insurance: This type of insurance Protects people and their families from financial difficulties in a situation where illness cease them from earning

Auto insurance: The victim is protected from paying the cost of repairing vehicles and medical bills resulted from accident.

What should you consider when subscribing to an insurance policy?

Conduct a research on insurance company you’re thinking about buying a policy from in order to be sure that the company is financially stable and provides good services. Again, find out the factors that matter so that you can secure the policy you need at the best rate

Conclusion

An insurance policy has numerous benefits , let us endeavor to subscribe to any of the policy plans. Let us plan for our future now.

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