6 Things you Need To Know About Insurance

Insurance is an industry that covers many aspects of daily life, from healthcare to being a homeowner. It's the policy of paying a premium so you'll be protected in the event you experience an illness, loss of property or similar issue. Here are six things you need to know about insurance.

1. There Are Different Types of Insurance For Different Purposes

There is no single policy that will cover all your needs. Depending on your situation, you may be able to take advantage of various insurance programs offered by your employer, including healthcare coverage, life insurance and disability insurance. Other types of insurance, including renters' or homeowners' insurance and automobile insurance, are policies you need to access on your own. When you research the different types of insurance and providers, you should always start by getting insurance quotes for each policy you're considering getting.

2. There Are Specific Times When You Can Change Your Coverage

These times will differ depending on the type of insurance you want to change, but generally, there will be certain periods where your policy is locked in and periods where you can make changes to your coverage. Most health insurance plans, for example, will have enrollment periods where you can sign up for coverage, change your coverage and add or remove dependents or extra coverage features. On the other hand, some homeowners' insurance policies may be changed at any time except immediately following warnings of incoming natural disasters.

3. Always Carefully Read a Policy Before You Agree

Insurance policies can be complicated. They may vary or change over the years and the benefits may or may not build over a period of time. Much of this information may be included in highly technical jargon. Because of this, it's a good idea to carefully and thoroughly read and review the policy before agreeing to it. You can also discuss your options and this information with a qualified insurance agent.

4. If You Need To File a Claim, Do So As Soon As Possible

You usually won't be able to procrastinate on filing a claim. Not only will you likely need to file a claim for something like a car accident to pay for repairs or replacement, but it's also quite common for insurance providers to have time limits for filing claims. You should check with your provider about their claim filing policies and time frames as soon as possible so you're prepared in case you need to file.

5. Make Sure You Understand What The Policy Covers

There are typically several coverage options available to you when you have an insurance policy. Make sure you understand what exactly your policy covers so you're prepared in case you do need to pay for anything out of pocket. For example, different types of healthcare coverage may or may not cover every treatment, test or procedure you may need. Check which essential healthcare, such as emergency services, outpatient care and prescription medications, are covered. You should also look for what non-essential services your policy will cover, including preventive care, dental care and vision insurance.

6. Consider Any Additional Costs That May Arise

Remember, insurance coverage may or may not cover or reimburse all of your expenses related to a claim. When you choose a policy, you should consider what additional costs may arise and whether you can afford and are comfortable with those potential costs. Healthcare coverage, for example, involves various copays, deductibles and coinsurance costs. One or more of these costs may apply to various services, or the service may be entirely covered by your insurance provider. It depends on the type of policy you have and the type of procedure, treatment or test being performed.

There are many different types of insurance and many options available for each of those types. You should carefully consider the types of insurance you think you should have and do thorough research on the different policies available to you before you commit to one.