Insurance essentials from "summary" of Exploring Financial Literacy by Judi Deatherage

Insurance is an important tool to protect you and your family members against any unforeseen financial losses that come through accidents, illness or death. It acts as a hedge against unpredictable life events. Many insurers offer a range of policies to suit various requirements and needs.

When it comes to the insurance field, understanding the basics of this industry can help anyone make informed decisions. One should strive to learn the fundamentals such as types of insurance coverage, its benefits, cost-effectiveness in terms of premiums, exclusions and other contractual features that are linked to their policy.

Property insurance protects possible financial harm which may result from fire, theft and other natural disasters. Such policies typically cover both personal and business properties.

Having a good health insurance plan is essential to cover medical expenses related to hospitalization, physicians' fees, cost of medicines and ot her related charges. Health insurance plans not only helps in saving money but also gives peace of mind.

For middle income households, a term life insurance policy could be a good way to provide a cushion for any lost earnings due to a sudden event such as death or ill health. This type of policy offers flexibility in terms of premium selection and duration period.

Business owners need to have umbrella insurance coverages to protect them from risks that are too expensive or outside the scope of traditional business policies. Umbrella insurence provides financial protection if someone is found liable beyond their existing business insurance limits.