Insurance: A Necessity for Peace of Mind

There are many choices for insurance. Insurance is apolicy where you pay in a certain figure, that you do notusually get back, and pays out in the event of a certainsituation. The details vary according to the type ofcoverage.

Health insurance was invented to help with your medicalcare. You will typically pay in a certain amount every monthcalled premiums and you may have invest a certain percentageon your presciptions and doctor's visits but the insuranceis created to help you with the costs. It will also helpyou in emergencies such as a broken bone, accident or asudden illness. Insurance is there to benefit you if you arehaving a baby or any other time you require regular care.

Car insurance is intended for accidents; either your faultor someone else's. You pay on your car insurance premiumevery month (or quarterly or yearly) and if you are in anaccident, the insurance can cover damages. There are twobasic kinds of car insurance; liability and full-coverage.Liability will only cover what you are liable for.Full-coverage will cover anything that happens to your car,your body or to the other party in an accident.

The main purpose of life insurance is to cover the survivorsof the person who dies. Life insurance can be used to payoff debt, cover burial expenses or take care of survivingchildren. Life insurance can be very important, especiallyif you are leaving a spouse that doesn't work, youngchildren, or debts. In the event of your death, the lifeinsurance company would award the amount of the policy toyour beneficiaries.

As the name implies, home insurance is meant to protect yourhome and property. There is home owner's insurance and alsorenter's insurance. Renter's insurance will take care ofpersonal items that are in the home and most often coverdamages to the house itself if there were a robbery orsimilar damage to the property. This will keep the renterfrom having to pay the owner personally if damage to theproperty occurred as a result of a burglary.

The home owner's insurance will protect the same things;damage to personal property and also to the premises.Many insurance plans cover natural events such asfloods or earthquakes. Some plans cover fire and others donot. Most cover fire only if it was not set by the owner.

There are many other kinds of coverage that are necessaryfor business owners, including disability and businessinterruption insurance. The only way to assure propercoverage is to consult with an agent and one that has yourparticular situation in mind.

Martin Shiverman is founder of FGA Insurance an excellent resource site dedicated to information on Insurance.