Insurance is protection against the uncertainties in life. Losses due to property damage, theft, illnesses, or death can occur at any time, without warning, and these losses can result in unanticipated financial burdens if they are not planned for in advance. Insurance is a major part of that planning process.
The risk of loss is transferred, in whole or in part, to an insurance company. The policy holder agrees to pay a premium amount that is usually a tiny fraction of the possible loss amount, and in exchange the insurance company agrees to pay all or part of the loss IF it occurs.
In the case of life insurance, the protection is provided against the risk of financial loss that may arise from the death of an insured person. The beneficiary is the person who has been selected to receive the payment if the insured person dies.
Annuities are related to life insurance and are often sold by the same agents. Annuities provide a guaranteed stream of lifetime income and are popular as retirement vehicles.
Health insurance transfers all or part of the monetary risk of a sickness or disability from the insured to the insurance company. The insurance company agrees to either reimburse medical expenses or make income payments to the disabled in the event of a disability.
Loss or damage to property, such as real estate or vehicles, is generally covered by property and casualty insurance. The amount of coverage depends on the exact terms of the policy itself.
Crocker Life & Health offers a variety of life and health insurance solutions for individuals, families, and businesses.
