Insure Your Family
What Is Insurance?
- An insurance policy is a legal contract between you and an insurance company to provide financial protection against losses described in the policy — up to a certain amount of money.
- You pay a premium to the insurer, and in return, the insurer agrees to cover you for all or a portion of the costs of your covered losses, as specified in the policy. The insurer agrees to compensate you for a covered loss to your vehicle, property, life, health or whatever a policy might cover. You are liable for any applicable deductibles, co-payments, damages in excess of policy limits, or non-covered losses.
Insure Your Family
What Is Insurance?
- An insurance policy is a legal contract between you and an insurance company to provide financial protection against losses described in the policy — up to a certain amount of money.
- You pay a premium to the insurer, and in return, the insurer agrees to cover you for all or a portion of the costs of your covered losses, as specified in the policy. The insurer agrees to compensate you for a covered loss to your vehicle, property, life, health or whatever a policy might cover. You are liable for any applicable deductibles, co-payments, damages in excess of the policy limits, or non-covered losses.
Understanding Insurance
Why You Need Insurance
First and foremost, insurance is about risk management. Consider these facts:
- Smart spending, regular savings and strategic investing are just part of smart financial management. It is vital to insure your assets, your earning potential, yourself, and your family against suffering a loss. This protection strategy is called risk management.
- Effective risk management includes obtaining adequate insurance for you, your family, and your possessions. It could also include reducing your risk factors by purchasing vehicles with safety and anti-theft equipment, taking a defensive driving course, and installing smoke detectors and a security system in your home. These actions may also reduce your insurance premiums.
- Insurance can never repair the emotional damage a loss brings, but it can minimize your financial stress and help you preserve your personal financial resources if the worst happens.
- The military provides Service members and families options for insurance. Experts recommend you review all of these benefits when considering how much coverage you need.
Choosing an Insurance Company
Before purchasing insurance, carefully assess what you need to protect. Although important, the cost of insurance should not be the only factor considered when making this decision. Determine the level of coverage required. Compare insurance companies and their policies. According to the Insurance Information Institute (III), consider these factors when selecting an insurance company:
- Consult consumer publications, A.M. Best Company reports (available in most libraries).
- Visit your state's department of insurance website to learn if a company is licensed in the state and covered by the state's guaranty fund, which may pay claims in the event the company defaults. Check with your state's insurance website to see if there are limits to coverage. Buying from a company licensed in your state means your state's department of insurance can help if there is a problem.
- Visit your state's department of insurance website to find out whether complaints have been filed against a particular company.
- Ask family friends and neighbors what they like or dislike about their insurers.
- Ask about discounts and savings, but pay attention to overall price. A company that offers few discounts still may have lower premiums.
- Ask if an insurer reduces premiums if you buy more than one type of insurance.
- Choose a company that has a reputation for being responsive.
- Select a company that treats you courteously and fairly.
Note: This information provides general insurance descriptions. When planning to insure your family, contact an insurance company for precise information on coverages, limitations and conditions.
Types of Insurance
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Understanding Insurance
Why You Need Insurance
First and foremost, insurance is about risk management. Consider these facts:
- Smart spending, regular savings and strategic investing are just part of smart financial management. It is vital to insure your assets, your earning potential, yourself, and your family against suffering a loss. This protection strategy is called risk management.
- Effective risk management includes obtaining adequate insurance for you, your family, and your possessions. It could also include reducing your risk factors by purchasing vehicles with safety and anti-theft equipment, taking a defensive driving course, and installing smoke detectors and a security system in your home. These actions may also reduce your insurance premiums.
- Insurance can never repair the emotional damage a loss brings, but it can minimize your financial stress and help you preserve your personal financial resources if the worst happens.
- The military provides Service members and families options for insurance. Experts recommend you review all of these benefits when considering how much coverage you need.
Choosing an Insurance Company
Before purchasing insurance, carefully assess what you need to protect. Although important, the cost of insurance should not be the only factor considered when making this decision. Determine the level of coverage required. Compare insurance companies and their policies. According to the Insurance Information Institute (III), consider these factors when selecting an insurance company:
- Consult consumer publications, A.M. Best Company reports (available in most libraries).
- Visit your state's department of insurance website to learn if a company is licensed in the state and covered by the state's guaranty fund, which may pay claims in the event the company defaults. Check with your state's insurance website to see if there are limits to coverage. Buying from a company licensed in your state means your state's department of insurance can help if there is a problem.
- Visit your state's department of insurance website to find out whether complaints have been filed against a particular company.
- Ask family friends and neighbors what they like or dislike about their insurers.
- Ask about discounts and savings, but pay attention to overall price. A company that offers few discounts still may have lower premiums.
- Ask if an insurer reduces premiums if you buy more than one type of insurance.
- Choose a company that has a reputation for being responsive.
- Select a company that treats you courteously and fairly.
Note: This information provides general insurance descriptions. When planning to insure your family, contact an insurance company for precise information on coverages, limitations and conditions.
Types of Insurance
Which type of insurance would you like to learn more about? Simply click the icon to dig deeper.
MilLife Milestones
Watch
Keep Going
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