Insurance {disability insurance}| can pay monthly when sickness or injury prevents working.
Insurance {fire insurance} against fire is lower for brick houses. Brick needs no paint. Brick is not good in earthquake zones.
Insurance {homeowner's insurance}| {renter's insurance} {home insurance} can insure repayment by insurance company if theft, fire, other natural disasters, or vandalism causes property loss. It pays victims of accidents on one's premises.
Insurance {life insurance}| can pay money to a named beneficiary after death of insured person. Payment can be one lump sum or monthly payments.
disability
Life insurance policies can pay for arm, leg, or eye loss {permanent disability}.
types
For most people, decreasing term insurance is the best buy in life insurance, because premiums are lower in early life, when paying is most difficult. Benefits decrease as need for benefits decreases.
amount
Amount needed is difference between total expenses family will have through working life, taking into account inflation and expenses attendant on death, and total income that they have with no insurance.
Life insurance {participating whole life insurance} can be like whole life insurance, but it also pays dividends to insured person, depending on insurance-company investments. Dividends can give cash to insured person, reduce future premiums, buy more insurance, or reinvest.
Life insurance {term life insurance} {term insurance}| can be for 5, 10, 15, 20, or 30 years. In ordinary-term life insurance, insurance premiums increase each year, as chance of death or disability increases. In long-term life insurance, premiums stay constant, at level between ordinary-term lowest and highest premiums, because payments average. In decreasing-term life insurance, premiums stay constant at low level, but payment to beneficiary decreases over the years.
Life insurance {variable whole life insurance} can be like whole life insurance, but it conditions payments to beneficiaries on insurance-company investment performance.
Life insurance {whole life insurance} {straight life insurance} can keep premiums constant at high level and insurance amount constant. Policy cash value builds as payments accrue. Cash value is total extra money paid to insurance company, plus interest. Cash value can be security for loans, income at retirement, or trade-in for another life insurance type. Premium owed is statistically expected cost of insurance coverage over statistically expected lifetime, divided by number of payment years. In first years, payments are more than true cost of protection at that time, while later they are less.
States require car insurance {automobile insurance}. Most people should have {coverage, insurance} liability, uninsured motorist, and medical payments insurance. Liability and comprehensive insurance cost depends on principal driver's driving record, age, sex, and marital status. However, insurance insures car, so insurance covers anyone driving that car with owner's permission.
All states have laws {financial responsibility law}, requiring car owners to show that they can pay for damages if in automobile accidents. If owners cannot pay damages, state revokes license and registration. Drivers should have $100,000 insurance for one injured person, $300,000 for all injured people, and $50,000 for all damaged property, in one accident.
Automobile insurance {liability insurance, car} can pay for damages to people or property in accidents that are driver's fault. Most states require that people have minimum liability insurance for damage to one person, all people, and property.
Insurance {medical payment} can pay up to a limit for minor-injury treatment received in accidents.
Drivers can have insurance company pay for injuries to self or passengers and for damages to car or property, without need to determine responsibility {no-fault insurance}. It allows faster claim settlement and reduced legal costs to insurance companies. Variations on no-fault insurance allow companies to determine fault. One pays for everything. Another allows premium increase after driver is in an accident. People can file lawsuits for additional damages.
Insurance {theft insurance} {damage insurance} can reimburse for theft, vandalism, flood, and windstorm property loss or damage.
Insurance can pay expenses up to a limit in accidents caused by drivers {uninsured motorist} who have no insurance and cannot otherwise pay.
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Date Modified: 2022.0225