How do deductibles affect my insurance premiums?

A deductible is the amount you pay out-of-pocket before your insurance coverage kicks in. The higher the deductible, the lower the premium because you are assuming more financial responsibility for claims. Conversely, a lower deductible results in a higher premium, as the insurer takes on more risk.

Can I add riders to my existing insurance policy?

In most cases, you can add riders to an existing policy, but eligibility depends on insurer policies, underwriting conditions, and your current health or risk profile.

How do claims work under a professional liability insurance policy?

When a claim is filed, the insured must notify the insurer immediately. The insurer investigates the claim, provides legal defense, and may negotiate a settlement or pay damages if the claim is valid. Policies typically operate on a "claims-made" basis, covering claims reported during the active policy period.

What is the cash value in whole life insurance?

The cash value is a savings component that grows tax-deferred over time. Policyholders can borrow against it, withdraw from it, or use it to pay premiums after a certain period, depending on the policy’s terms.

Are all individuals in a household considered insured under a homeowner’s policy?

In most cases, family members living in the same household are covered under the policyholder’s homeowner’s policy, but additional coverage may be required for specific individuals.

What is a revocable beneficiary?

A revocable beneficiary is one who can be changed at any time by the policyholder without needing consent. This provides flexibility in case life circumstances change, such as divorce, remarriage, or a shift in financial responsibilities. Most life insurance policies allow for revocable beneficiaries by default.

What are the different types of insurance contracts?

Common types include life insurance, health insurance, property insurance, liability insurance, marine insurance, and auto insurance, each covering different risks and subject to specific legal requirements.

Does product liability insurance cover damages from product misuse?

Product liability insurance usually does not cover damages resulting from misuse or improper use of the product by the consumer. It typically covers defects in the product itself.