Understanding Life Insurance

1

What is Insurance?

Insurance covers risk, and a risk is anything that could happen that would expose you to loss. Basically, when there’s an asset involved (something of value), there’s also risk.

2

What is Underwriting?

The method insurance companies use to work out your level of risk is called underwriting.

3

What Types of Insurance Are There?

Many people make the mistake of either getting insurance they don’t actually need or not getting the right types of insurance for their needs.

4

How Do Insurers Make Money?

Insurance, like all good business models, has to be profitable. Insurers have to cover their costs and make a profit to stay in business.

5

How Much Cover Do I Need?

Discovering that you, or someone you depend on, doesn’t have enough insurance can really be a tragedy on top of a tragedy, because you usually only find out when things go wrong.

6

5 Steps to Getting Insured

Think of this article as one of those vitamin-enriched, whole-wheat loaves of bread: an honest, wholesome guide to getting insurance.