THE FINANCIAL FREEDOM SERIES

6 mins read

IF YOU LOVE OR CARE ABOUT SOMETHING THEN YOU SHOULD  PROTECT IT!!!

 

WHAT YOU NEED TO KNOW ABOUT INSURANCE (2)

 

In my previous post I talked about the meaning of insurance and I highlighted the common types of insurance we have, today I will be explaining some of the important types of these insurance in details and why it is important.

 

(1) LIFE INSURANCE :

The most important thing to us as a human beings is our life,  ironically, choosing a life insurance policy makes us think about one of the things we dread the most as humans, “death” and the effects it would have on our family and loved ones when it occurs, but deep in our hearts we know that death is an inevitable phenomenon.

Basically, life insurance is a contract between an insurance company  and you (insurer), in which you agree to pay a certain amount of money periodically to the insurance company who would in turn, pay a fixed amount at the time of your death, to a person(s) of your choice or at the expiry of a certain period.

Everyone requires life insurance because it provides protection to your family when you die, either when you are aged and your earning capacity is reduced.

 

(2) HEALTH INSURANCE:

Your health is the most important aspect of your life, without good health you are practically useless.

Health insurance is a type of insurance that pays for the medical, surgical and in some cases dental expenses incurred by the insured.

Your chosen Health Maintenance Organization ((HMO) can either reimburse you  for the expenses incurred or they pay the care provider (hospital) directly.

Most organizations includes health insurance in their employee benefit package with premiums partially covered by the employer but often deducted from employees salary.

Imagine having a very terrible illness which you can’t afford to pay for it’s treatment at that particular moment, your health insurance will definitely stand in as your “knight in shining armor”.

 

(3) BUSINESS INSURANCE:

Starting a new business involves a whole lot of risks, starting the business itself is a smart risk but not getting an insurance for it is a very risky kind of risk.

This is why every business should have an insurance in place to give them a cover over the risks that will or may be incurred in the course of the business.

A lawsuit or catastrophic event could be enough to wipe out a small business before it even has a chance to get off the ground.

Basically, a business insurance is a risk management tool that helps businesses to transfer the risk of a loss to an insurance company.

This is achieved by paying a relatively small amount of money to the insurance company at a particular time.

By doing this,  a business can protect itself against the possibility of sustaining a much larger financial loss. All businesses  need to insure against certain risks which could be detrimental to their existence such as , fire, theft, natural disasters, legal liability, automobile accidents, death or disability of key employees.

Luckily,  businesses have access to a wide range of insurance types to protect them against these dangers.

Your insurance broker will give you further information on the best  plans to subscribe to.

 

(4) PROPERTY INSURANCE:

This type of insurance provides protection against most risks to property either the physical structure or what is inside the structure.  Some of which includes fire, theft and some weather damage .

It also includes specialized forms of insurance for certain  incidents, such as flood insurance, earthquake insurance, e.t.c.

 

In conclusion, most of these insurance types works hand in hand, the best thing to do after reading this article is to contact a professional  broker who would give you further information and assist you in choosing the best plan.

You can also reach out to me on my social media page for recommendations and referrals.

As the saying goes,

It is better to be safe, than to be sorry.

Get an insurance plan today and subscribe to an higher level of peace of mind.

In my next article, I will be discussing the different sources of income and ways we can increase our sources of income.

If  you enjoyed this article, please click on the like button , comment and share with your loved ones.

Catch ya later!

Written by Irabor Peace “Poria”

 

I am a Lover of Life, I create captivating and Eye-Catching content, I preach humanity and I love to help people become better versions of themselves. Feel free to reach out to me on any of my social media platforms.

P.S: I LOVE YOU.

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