Things to Know Before Purchasing Insurance

Before purchasing insurance, you need to know exactly what the risks are and what your needs are so you are not spending money on premiums that are irrelevant. This is where knowing things before purchasing will save time and hassle.

Who Needs Insurance

Every person will need insurance in one capacity or another. If you own a vehicle, are looking to purchase a home, or want to start a business; insurance is required. The laws are set up to protect consumers on every level. Optional insurance includes life and health. These two are not required but are good investments to protect against outrageous costs associated with medical procedures and the expense of funeral arrangements.
Life insurance is also a great way to make sure family members can survive comfortably after death and to ensure financial obligations are handled.

Types of Insurance

Liability In purchasing auto insurance, cars that are fully paid off and have a low value, will only require basic coverage. Liability insurance is the answer in this case. You will be fully covered for repairs and damage without the extra bells and whistles of full coverage.
Full Coverage This type of insurance is required when a car is still being paid off. You’ll need to be covered for damage to the vehicle, medical costs (if applicable), and full protection because the property is not technically yours as it is being financed.
Term Life Insurance For those looking at options for life insurance, term life insurance is the most popular. It is a small premium that provides a set amount of death benefits to the survivors of a person who has passed.
Whole Life Insurance This is more expensive insurance and grows as time goes on. There is no set value until the time of death. With whole life insurance, owners of these policies can borrow against the amount of coverage for a fee.