Insurance

Commonly known as a policy, insurance is a contractual agreement of protection against unexpected covered loss. Simpler, an insurance policy holder (the insured) pays a fee (premium) to an insurance company (the insurer) for guaranteed financial compensation (reimbursement) for specified loss.

Although the risk of loss or damage seems remote, and the idea of defending against hypothetical misfortunes sounds misguided, it’s imperative to protect yourself financially against potentially ruinous eventualities.

It is equally important to understand and evaluate the type, capacity and provisions of your insurance policies, as well as their appropriateness in regards to your current and future needs.


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4 Core Insurance Categories

Insurance coverage that pays for medical and surgical expenses. The insurance company reimburses the policy holder directly or more commonly pays the healthcare provider.


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A legal contract between an insurer and policy holder, maintained through payment of a premium, where the insurance company agrees to pay a designated beneficiary upon the death of the insured person. Essentially, life insurance is a form of protection against loss of income if the insured dies.

Insurance that provides the beneficiary (worker) with earned income in the event a disability prevents the performance of central duties.

Insurance policies covering damage to or loss of a policy holder’s property. Also referred to as casualty insurance, whereby providing liability coverage of an individual or organization for negligent acts or omissions.

  • Vehicle Insurance

    Vehicle insurance coverage that mitigates costs associated with automobile accidents and other associated damage and loss. There are several different types of automobile insurance.

  • Homeowners Insurance


    Insurance 101 – Homeowners Coverages

  • Renters Insurance


    Insurance 101 – Renters Insurance

  • Umbrella Insurance

    “An umbrella insurance policy is extra liability insurance coverage that goes beyond the limits of the insured’s homeowners, auto or watercraft insurance. It provides an additional layer of security to those who are at risk of being sued for damages to other people’s property or injuries caused to others in an accident.”

  • Flood Insurance

Shopping for Insurance

Insurance is a product and can be shopped for like any product. Outlets for purchasing insurance are numerous.

Insurance Sales Agents

  • Captive Insurance Sales Agent
    An agent working for a single insurance company selling their policies, exclusively.
  • Independent Insurance Sales Agent
    An agent working for several insurance companies selling various products.

Stock Insurance Companies and Mutual Insurance Companies


A Difference Between Stock & Mutual Insurance Companies

Online Insurance Companies

Virtual online insurance companies offering the same services of traditional insurance companies.

ACA Health Insurance Marketplace

Qualifying for Insurance

Most insurance is regulated at the state level through the state’s office of insurance regulation.
After completing and submitting an insurance application, an individual’s risk level and premium rate are determined by the insurance company.
When deciding whether or not to write a policy, an insurance company considers several factors. Medical examinations are common when purchasing life, disability and long-term care insurance directly from an agent.
An appraisal may be conducted to determine the value of the item being insured.

Health and Life Insurance Qualifying Factors

  • Age
  • Health
  • Personal Habits
  • Occupations
  • Family History

Property and Liability Insurance Qualifying Factors

  • Past Claims
  • Credit score
  • Property location
  • Driving history
  • Age