What You Should Know When Learning About Insurance

What You Should Know When Learning About Insurance

Learning about insurance sounds easy. However, you may not know where to begin. If you’re new to the insurance world or find yourself overwhelmed with the insurance process, don’t stress. We have a guide that has everything you need to know about insurance. Read on to learn more about insurance.

What Is Insurance?

Insurance is a contract between an insurance provider and an individual (the insured) that serves as protection during times of hardship. It aims to reduce the financial loss that occurs during or after unfortunate events. The insurance contract ensures an individual or company is paid out for their losses in certain cases. Insurance companies provide cover in the case of many incidents, including theft, illness, property damage, and death. Although insurance can be provided for a specific period, the insured can choose life-long insurance options. 

Payments made for insurance are called premiums. An insurance provider tries to make premiums affordable for the insured person. Premiums will have to be paid on time for the insured to be covered by the insurance. The amount of the premium will depend on the insurance policy and the coverage that you need. Other factors that affect premium costs include age, family history, lifestyle, or health status. 

The amount you can claim during an event (the amount the insurer will pay out) will also vary according to certain factors. Claims usually depend on the deductible amount—the amount you will pay out on your own before the insurer pays the rest. Your premiums will usually be less if you agree to pay for a larger part of your loss.

How Does Insurance Work?

When you choose to buy insurance, it goes into a pool along with many other policyholders. All policyholders will be covered for losses in times of hardship. Hardships, however, don’t mean you will receive a payout whenever you are going through a tough period in your life. Your losses are not covered by the unpredictable events that are covered in your contract. Predictable events such as accidents due to alcohol abuse on your part will not be covered by insurance. 

The insurance process is fairly simple. Whenever you experience a hardship, such as unpredictable fire damage to your property, a claim can be made. A claim is a request by the insured to the insurer to pay for the loss. An insurance broker will usually help the insured to make claims. You will be required to submit documents to support your claim, which includes photographic evidence of the property damage in the case of a fire, or a medical or death certificate in the case of injury or death. A claim investigation is then undertaken by an insurance agent. 

Different Types of Insurance

Life Insurance

Life insurance protects an insured or their family members in the event of a death. If you take out life insurance for yourself, your loved ones will receive payment in the event of your death. Only your beneficiary or beneficiaries (people who you name on your insurance policy) will receive the benefits of an insurance policy. Life insurance benefits are usually tax-free. 

There are different types of life insurance. Life insurance can provide coverage for a specific period of an insured person’s life (their age) or throughout their lifetime. Premiums can get higher as you get older, or you can choose life insurance with a set premium for the rest of your life.

Health Insurance

Health insurance is an alternative to health care plans. It covers situations or events that may not be covered under your plans, such as a major illness or injury. If you are away on vacation and contract a disease, this may also fall under health insurance. Some forms of health insurance include disability insurance, travel medical insurance, critical illness insurance, and long-term care insurance. 

Property Insurance 

Property insurance covers an insured in the event of damage to their property. It includes losses and damage to their home, possessions, car, or business. Casualty insurance (insurance that protects you when someone is injured on your property) can also form part of property insurance. There are many types of property insurance, but in general, you can receive home or property insurance, tenant or renter’s insurance, and commercial property insurance. 

Group Insurance

Group insurance provides insurance claims for employees as part of their total compensation package. A lot of workplaces in Canada offer this type of insurance, in addition to other work benefits to employees. It helps to create a healthier and happier workforce. Group insurance is also a tax-deductible business expense. Some forms of cover for group insurance include life insurance, dental insurance, and long-term disability insurance.

How Do You Apply For Insurance? 

When you apply for insurance, your insurer will find a policy that fits you and your lifestyle. Certain factors they will evaluate include your age, previous claims, medical history, and the amount of coverage you need. Answer all questions honestly, as you can have your claims rejected later on if you are caught lying. 

If you require life insurance, you might be asked to do a medical exam. After the assessment is done, you will receive the premium amount you need to pay. You’ll have to pay your premiums on time and in full to avoid having your insurance policy cancelled. If you do not make payments, you can also risk being blacklisted by the insurance company, which will make it very difficult for you to take out insurance later on in life. 

You will pay your premiums according to your policy. Some payments are made per month, others can be made every six months or every year. It will depend on your insurance provider. You might need to lower your premium if it is too high. Shop around for insurance providers when applying for insurance to find a company that provides you with the best rate. Although it may be tempting to choose a company that has very low premiums, they might not provide the best service or claim process. 

Zippo Insurance has affordable insurance premiums and policies available, based on your needs. Be sure to speak to our team when you are shopping around for insurance. Need some advice? Here are some FAQs we receive:

What Not To Do When Filing An Insurance Claim

  • Never lie. Lying is the worst thing you can do when it comes to making an insurance claim. You will not only be caught, but you may also face blacklisting or, in extreme cases, jail time for making false claims.
  • Don’t assume the evidence will be enough. Insurance claims will require different documents when you submit a claim. Always check your policy and have extra evidence of the property damage or injury you have experienced.
  • Exaggerate repair costs. Insurance agents have spent a significant amount of time in the insurance industry. They will always investigate the damage and asses the costs.

Why You Should Never Lie In Insurance

As mentioned, lying can get you in a lot of trouble. There is a lot of pressure on insurance companies to follow fair business models. If they discover you are lying, you will not only lose your insurance but you may also be blacklisted by their company for failing to follow their protocols. Once you are blacklisted, it can be difficult to find another insurance company that will be willing to take you on as a client. Blacklisting can also affect your ability to take out a loan in the future if you need cash. In extreme cases, you can be sued for lying as an insurance contract is a legally binding agreement.

What Is Covered By Home Insurance?

Insurance products have different types of coverage for home insurance. Generally, you will receive protection in the case of damage caused by bad weather conditions such as snow storms or wildfires. You can also receive protection in the event of a burglary or theft on your property, or if someone gets injured on your property. 

Zippo Insurance offers protection to homeowners and renters in case of damage, fire, theft, vandalism, water damage, or natural disasters. We even provide affordable home and condo insurance to new homeowners and the elderly. We search for the best policies and find the most competitive quotes for you out of hundreds of policies.

How To Become An Insurance Agent In Canada

An insurance career is rewarding and exciting. Typically, the education requirement you will need is a completed secondary education. Tertiary education is not needed. However, you will receive on-the-job training before you are employed. You’ll often be asked by your insurance company to complete an insurance industry course and/or training program. 

After that, you will need a license in the province in which you are employed. Your certification needs to be issued by a regulatory authority. The regulatory authority will depend on the state you are operating in. If you are licensed in one state and want to work in another, it will usually be easy for you to apply for a license in another state. Take a look at the insurance policy regulations in your province for more info.

Challenges For Insurance Companies

  • A lack of resources

A lack of resources takes a toll on the insurance industry, especially after the pandemic. Finding staff can be difficult if they do not attract the right talent. Luckily, Zippo Insurance provides added benefits to our staff and a healthy work environment that attracts the best insurers.

  • Rising costs 

Inflation affects insurance companies too. Providers will have to keep up with costs in a competitive industry to stay afloat. Funding can be difficult if it is a new business or if there are diminishing margins. Thankfully, inflation is not something that has brought us down. With several years of success in the insurance world, we are still able to provide affordable premiums to our clients.

  • Digitization

Insurance needs to keep up with the digital age. More users want to be able to apply for insurance and make claims online. Some providers might find this difficult, while others, such as Zippo Insurance, evolve with technology to fit our clients’ needs.

The Most Important Things To Insure

You can insure most items these days. The more expensive an item is, the more protection it requires. Apart from ensuring your health and that of your family in the event of your death, there are certain items you should also consider taking out a policy for. There are many valuable items you can insure, but the most important items are:

  • Expensive jewelry
  • Luxury watches
  • Timeless pieces of art
  • Firearms
  • Fine china
  • Laptops, smartphones, and tablets
  • Expensive collectibles such as stamps, coins, or sports cards
  • Fitness and sports equipment
  • Furniture
  • Musical equipment such as pianos or guitars
  • Expensive landscaping
  • Vehicles, trailers, ships, or boats

Learning about insurance is easy, but if you have any questions, be sure to contact our helpful team!