Cpa's and Business Advisors

Category - Insurance

September 3, 2015

Commonly Familiar Insurance Types

Almost everybody is familiar with the word ‘insurance’ but not everybody fully comprehends the meaning of it.  What they know however is that the insurance will pay them if a loss or damage happens.  The truth is that there are many types of insurances and that you can insure nearly everything these days as long it is of great value to you and has insurance interest.  For some people, understanding insurance is not their thing, particularly those that are more complex.  Nevertheless, they will encounter insurance one way or other through these commonly familiar insurance types:

Life Insurance – this type of insurance is a form of assurance by the breadwinner in the family that his family will have monetary assistance should he meet his/her demise.  Life insurance allows you to have a beneficiary for your death and this can be given on a monthly or lump sum basis.  When you have life insurance, the insurer will also assist the family in you funeral, burial, and other expenses that relates to your body’s final moments above earth.  If you have children that are still minors and your death will leave them in financial hardship that may affect their studies, having life insurance may be a great investment for you.

Auto Insurance – any person who has a motorized vehicle is required to have his automobile to be properly insured.  Having auto insurance is an important protection as you will never know when you will get in a vehicular accident.  If you are responsible in causing the accident, you will need to cover for the expenses that came as a result of your accident.  This will include property damage and medical bills for the injury you may have caused.  If you do not have any insurance, you will have to pay for all of these.  This makes having auto insurance very important when you have an automobile.

Home Insurance – when you have a home, it is very important that you have home insurance as home insurance not only serves as damage protection, but also as liability protection.  If your home gets damaged and the damage is within the confines of your coverage insurance policy, then your insurer will pay for the repairs until you are indemnified.  If anyone gets injured in your premise, your insurer will also pay for the medical bills for the injured person.  This is why it cannot be emphasized enough how important home insurance is.…

August 16, 2015

Benefits Of Insurance

Quite a number of people do not exactly realize the importance of insurance.  The truth is that insurance is a very important investment for the things you value.  It is an investment that hedges the items you value from uncertain loss.  When you have an insurance policy for them, as long as the loss or damage is within the grounds of the coverage, then your insurer will cover the cost for the repairs or replacement.  In the case of liability insurances, the insurer will cover the expenses of the legal proceedings up to the settlements when necessary.

The core benefit of insurance is that it protects you from any financial loss from the loss or damage of what has been insured.  Other benefits of insurance involves on the type of insurance you have your item insured.  This will include home insurance, auto insurance, health insurance, life insurance, liability insurance, general insurance, and many more.

Home insurance is a protection for your home and is a combination type of insurance as it provides damage and liability insurance.  Auto insurance is a protection for your car should your car get stolen, get damaged, or be involved in pedestrian accident wherein it causes property damage or bodily injury.  Health insurance or medical insurance is insurance regarding your health wherein your insurer covers part of your medical bills.  Life insurance is protection from death and provides your beneficiary financial compensation for your loss.  Liability insurance is protection for professionals and businesses should they get sued for things they are considered liable for.  General insurance is basically any type of insurance that does not involve life.  These days, you can insure nearly anything and hence may fall under general insurance.

If you have something that is valuable to you, whether it is your car, your home, your profession, your life, your health, or anything in between, the best way of protecting it is through insurance.  After all, they are your best interest so it is only proper that you get protection for them; and the best protection can only come in the form of insurance.  The benefits of insurance are truly amazing as it lowers your risk from any form of loss, provided they are within the coverage of your insurance policy. This is the very reason why it is a good idea to have the things you find most valuable properly insured.…

August 10, 2015

The Six Principles Of Insurance

There are actually quite a number of insurance principles.  However, the six principle of insurance are the main protection of insurance companies from potential frauds and from people who are attempting to intentionally cheat their way into making claims.  As a means of safeguarding their best interest, insurance companies have come up with the six principles of insurance to protect themselves against these cheats.

The six principles of insurance are:

Principle of Utmost Good Faith – it is understood that when you are insuring something that you disclose everything about what you are insuring.  Insurance companies do not always have the time to have what you are insuring fully inspected from every nook and cranny.  Due to this, they expect you to disclose everything that needs to be disclosed otherwise you may be attempting to commit fraud if you omit important information.

Principle of Insurable Interest – it is understood that what you are insuring is valuable to you and would best be for you if you do not lose it.  If in case an item is not that valuable to you and you are insuring it, you would not mind at all if you lose it and thus be able to cash in on claims.  If the loss has been deemed as intentional, your insurer will refuse to pay you claims over it.

Principle of Indemnity – it is understood that your insurer will compensate you for loss or damage.  However, it will only compensate you for the amount of loss and never more than that.  Once payout has been made, your insurer will indemnify you and consider that the insured item is now at its pre-damaged condition.

Principle of Proximate Cause – it is understood that there are different coverage available in each type of insurance.  Different perils will be a different insurance coverage.  If the damage or loss you have experienced is near the coverage but is not the exact coverage you have, your insurer deny you of any claims.

Principle of Subrogation – it is understood that when a third party causes you damage and your insurer provides you with claim that the insurer will sue the third party in order to get compensation for their loss.

Principle of Contribution – it is understood that you cannot get the same policy from different insurers in order to get more from them should the eventuality do arise.  If an eventuality do arise, you will only be given claim to one and both insurers will share and contribute to that amount.…

August 3, 2015

What Is The Importance of Insurance?

For a lot of people, they know the term insurance but they do not exactly comprehend how it works.  What they know is that you get compensation for a loss over something that is insured.  Although insurance works this way, it is a lot more complicated than that as there is insurance coverage that needs to be considered.  If a loss or damage is a result that is not within the confines of the coverage, then the insurer has no liability to pay the claim.

Insurance is actually a defensive measure to protect you from uncertain losses from eventualities that may or may not happen.  Buying insurance is a way of hedging the risk of possible loss in the future.  The importance of insurance can never be underestimated because insurance serves as a medium for lowering the risk you have over something you find valuable.

Sadly, sometimes, it is not possible to avoid losses.  Due hedge against this eventuality, insurance was born.  These days, there are many types of insurance you can buy.  In fact, you can nearly insure anything.  As long as the item being insured is of great value or insurable interest, there will be an insurance company who will be willing to provide insurance for it.

The types of insurances includes life insurance, medical insurance, disability insurance, general insurance, business insurance, liability insurance, car insurance, home insurance, and other insurances that go in between.  If you have something that is of great value to you, it is vital that you have it insured to prevent the full loss of the item or your finances.  If it is properly insured, your insurer will attempt to settle repairs or replacement until you are indemnified.  This is the role of insurance as it hedges your risk from uncertain loss.

These days, thanks to the advancement of technology, you can now buy your insurance online.  Whatever type of insurance it is you are looking for you can now buy it online.  This gives you the option of buying your insurance from your regular physical insurance agency or broker to online insurance agency or broker.  There are plenty of advantages in getting your insurance online.  Aside from being able to do it from the comforts of your own home, you can buy your insurance online at any time you feel most comfortable with.  This is actually the very reason why many now prefer getting their insurance online.…