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The right form of insurance is important for sound financial planning. Some of us may have insurance, but few of us really understand what it is or why it is important. For most people, insurance is either a form of investment or a great way to save money on taxes. When asked about their savings, the average individual would proudly mention an insurance policy as one of their key investments. Only a small percentage of the insured consider insurance to be solely that. Perhaps no other financial product has seen such widespread mis-selling by agents who are overly enthusiastic about selling products that link insurance to investments in order to earn large commissions.Learn more by visiting Miller-Hanover New Oxford Office – Gettysburg insurance

Insurance is a method of distributing a person’s or business’s significant financial risk across a wide number of people or businesses in the event of a predetermined unfortunate event. The monthly or annual compensation paid to the insurance provider is the expense of being covered. The money paid as reimbursement is not retrieved in the purest type of insurance if the predefined occurrence does not occur within the time frame stated. Insurance effectively spreads risk among a community of people who are insured, easing their financial burden in the event of an unexpected event.

You become the insured and the insurance broker becomes the insurer when you pursue financial liability cover and enter into a contract with an insurance provider.

This is the sum of money that a life insurance company promises to pay if the insured dies by a certain date. Bonuses added in the case of non-term insurance are not included. This fixed amount is known as Premium Cover in non-life insurance.

The insured must reimburse the insurer for the financial risk insurance it offers. This is referred to as premium. They can be paid yearly, quarterly, weekly, or on a contract-by-contract basis. It makes no sense to pursue insurance unless the overall amount of premiums charged is many times less than the insurance cover. The amount of coverage, the number of years for which insurance is sought, and the age of the insured (individual, car, etc.) are all factors that affect premiums.