Insurance

Insurance is an arrangement by which a company or the state undertakes to provide a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a specified premium. Usually you have to make payments towards the company to have that arrangement.

Insurance and what it does

Insurance like stated above is an arrangement given by an insurance company to guarantee any object which has been insured to be repaired. Insurance works with the company repairing any damages, for example when you crash a car, the insurance will pay for the damages. Insurance is usually paid weekly. When you buy insurance you sign a contract who agrees to pay you a specified amount of compensation if the accident is covered in the policies when the contract is signed. For example when you sign a contract for home insurance which might cover fires or cyclone damage and the house is flooded, then the insurance company has a right to not pay for the damages.. Insurance is worth having but it is worth remembering that an insurance policy only covers the losses specified in the contract. You are not allowed to claim for things that your policy does not cover. Therefore you should make sure that your insurance policy covers the things you need to protect and will pay enough compensation for your needs. Some useful insurance to have is home insurance, life insurance and car insurance.

Different types of insurance

There are many different types of insurance to cover things you own, your health, income, car, home and your life. There are a lot of products of each type of insurance and they offer different levels of cover and prices. 

Some types of insurance to have are:

• Comprehensive car insurance which covers your car from damage, theft and also covers the damage done to other cars in an accident
• Home and contents insurance which covers your possessions and help you repair or rebuild your house or unit if it is damaged or destroyed
• Travel insurance can protect you and your possessions if they are lost or stolen during a holiday. It can also cover health and accidents when travelling. It is an important insurance if you feel unsafe going into a country which may have riots or wars going on.
• Private health insurance can cover the cost of going to a private hospital. It can cover visits to physiotherapists, dentist and other health services that aren't provided by doctors. They also provide better service and faster operation booking lines.
• Life insurance can protect your family if you die. You family gets compensations. Cover can also be bought for specific life threatening events such as heart attacks or strokes, some life insurance companies may not let you buy it if you already have an incurable disease or very old.
• Income protection insurance can be bought to protect your livelihood if you are injured or disabled or cannot work for whatever reason e.g. broken arm, broken leg.
• Additional insurance can be bought from some superannuation funds or other insurers if you want more cover than your superannuation provides

Shopping for the best deal

Shopping around and comparing insurance has its benefits. You can compare the premiums, excesses and details of exactly what is covered by the policy and what is required to make a claim. The different policies have different terms and conditions and different premiums and excesses.

When shopping around for insurance policies, it is important to check what the policy covers and does not cover.  You must choose the right policy that covers all of your needs. Do not sign a contract on a policy until you've read all the terms and conditions of the policy, since you might find hidden catches, clauses or insurance that does not cover your needs. To understand an insurance policy you must read the product disclosure statement and the policy, be sure to talk with the people in the insurance company and make sure you know every bit of information on their company. Your insurer must provide the product and disclosure statement by law. The product disclosure details must tell you the details of the contract, any unusual features of the policies such as exclusions, the calculation of the premium, the cooling off period and information about complaints handling. The cooling off period is essential as it lets you change your mind about the insurance and you can receive a full refund if you tell the insurer within the time given by the cooling off period. As well as this the cooling off period is maintained by law so that companies cannot deceive their customers.

Another important rule is to not fake any information by yourself, especially your salary, age, date of birth and details like diseases or bad driving records. If you do happen to have an accident and is not written in the insurance details, they can refuse the claim since you have not produced a honest description of yourself As well as this it is best to change insurance if you feel unsafe with the current insurance or unsecure with them.