Most people know that insurance is necessary in many cases, but they wonder what it is and if they truly need it. Overall, it’s a puzzling and mysterious thing. What are the benefits? How do you find what’s right for you? Learn about all that and more today!
What is Insurance?
Insurance is your financial safety net and can help you recover after something bad occurs (fire, car accident, death). When you buy insurance in Singapore, you get a legal contract between the provider and you. Whenever you suffer a loss covered by the policy, you file a claim so that the company pays you or a beneficiary based on the terms.
The hardest part for most people is that they think they’re paying for something they hope never to use. No one wants bad things to happen, but you could be in a difficult situation if you don’t have insurance.
What’s Term Life Insurance, and Why Do You Need It?
Term life insurance guarantees a payment (death benefit) if the policyholder dies during a specified time frame. When that term expires, the person must renew it, convert it to permanent coverage, or terminate the policy altogether.
Typically, the premiums you pay are based on your overall health, age, and life expectancy. There are various policies available, and some last up to 20 years.
The beneficiary can use the money to cover funeral or healthcare costs, mortgage debt, and anything else. However, there’s no payout if your policy expires before you pass away.
You may renew your term policy after it expires. However, the premiums are recalculated based on your current age and health.
Many people like term life insurance because they’re less expensive and cover the policyholder and their beneficiary during a specific time.
Younger people often carry term life insurance to protect their moms and dads from hardship. Middle-aged people like it because they can focus on their families and keep their loved ones afloat if they die accidentally.
What’s Car Insurance, and Why Do You Need It?
Car insurance comes in many forms, but most people prefer comprehensive coverage. It pays for roadside assistance, windscreen damage, personal accidents, medical expenses, third-party damages, and workshop repairs. Each company has its benefits and drawbacks, so it’s often better to compare rates.
Insurance is a crucial financial tool. It helps you live your life without fear because you know that you (or your beneficiary) get assistance after an accident or disaster. In a sense, people recover faster with it.
Life insurance also protects your family by allowing them to continue making mortgage payments. Therefore, they don’t have to move after you’re gone. Plus, It can also pay for a child’s education.
Car insurance helps you pay for replacement or repairs after an accident. It also covers the medical expenses of other drivers or passengers, protecting your wallet and shielding you from legal problems.
You’re not required to have life insurance, but it’s a great way to give peace of mind to everyone in the family. However, car insurance is required before you can buy or drive a vehicle.
Overall, insurance keeps your life on track when something derails it.
How Insurance Works
Insurance is like having a rainy day savings that’s shared by many people and managed by the insurance carrier. The company uses the premiums collected from the policyholders to pay for operations. Then, it promises to pay out when people file a claim.
The insurance company’s goal is to be financially strong enough to pay for the policyholder’s issue. Life is unpredictable with hail, tornadoes, wildfires, and fender benders. Therefore, it’s best to be prepared.
Choosing an Insurance Provider
Most people like the idea of having one insurance provider for all their coverage needs. You’ve got one policy and might be able to get discounts because of that. Here are some things to consider:
- Types of Coverage – What insurance options does the company offer?
- Financial Strength – Can the company pay your claim?
- Agency Model – Do you work with a local agent or manage your own needs?
- Customer Service – Are the representatives friendly when you call to ask questions or file a claim?
It’s always best to have insurance and not need it. You get peace of mind because you know you’re protected if you have an accident or pass away suddenly.
When you’re thinking about term life or car insurance, Bubblegum has you covered. Call a representative to get started today!
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