Is buying insurance worth it?

Who accepts EyeMed eyeglass insurance?

As much as we make plans, we never really know what tomorrow will be like. It is for this reason that many people decide to take out insurance. It is an alternative to guarantee financial support in unexpected situations, such as an accident or a natural disaster.

But this type of product still faces some myths. Many consumers think it’s too expensive, while others think it’s wasted money. Really? Stay with us to better understand how eye insurance works. See also what precautions to take when hiring him.

How does insurance work?

The operation of the insurance is very simple: you pay a monthly fee to the insurance company to be entitled to the service. In the event of a claim, as unexpected events are called, the company assumes the repair costs or provides compensation. 

For example, crashed the car? Vehicle insurance will cover the damage. Life insurance, on the other hand, can earn your children good money in case they die and they become financially helpless.

It is worth noting that, sometimes, it is necessary to pay the so-called deductible to be entitled to the premium. This fee works as a kind of co-participation in expenses. The higher the amount you pay, the proportionally higher the amount provided by the insurer.

Another important point to know when purchasing insurance is coverage. That’s because the customer can opt for a simpler or more complete package, depending on their personal demands.

If in doubt, read the policy carefully before signing the contract. It is the document that contains all the situations in which the service can be activated.

What types of insurance are there?

It is possible to take out insurance of all kinds. If you have a precious asset that deserves to be protected, there will certainly be a policy to protect it. Some of the most common products are:

Life insurance

This insurance guarantees financial compensation in the event of death or permanent disability of the insured. The money goes to the person’s beneficiaries – spouse or children, most of the time. There may also be additional services in the policy, such as funeral assistance, which covers funeral and burial expenses.

property insurance

Material patrimony can suffer all sorts of damages, such as firevandalism, and theft, among others. It is to mitigate losses of this type that property insurance exists. It may still cover maintenance services. That way, you can avoid unexpected expenses with the plumber, electrician, or other professionals.

Car insurance

Car insurance protects against theft, theft, or miscellaneous property damage. In addition, it may cover third-party medical expenses related to an accident. In the case you run over and hurt someone, the insurance company must pay for the hospitalization, as well as all the victim’s treatment.

Personal accident insurance

This is another important type of insurance, especially for customers who travel a lot. The policy covers all medical expenses resulting from an accident, at least during a specific period of life. If there is death or permanent disability, it is possible to obtain an indemnity amount, both for the insured and for his beneficiaries.

Is it still worth taking out insurance?

There is a belief that insurance is for rich people. However, the opposite is closer to the truth. Those who have money to spare don’t have to worry about unforeseen events, as they can withdraw the necessary funds to pay for car repairs or medical expenses.

Those who live with expenses at the tip of a pencil must do the math. Is your emergency fund enough to pay for medical treatment? Or put down a new property if your house catches fire? Or even pay for the funeral of a loved one?

And more: if you use this fund, how many years will it take to replace the money spent? These are questions that need to be answered. Remember that everyone is subject to the imponderable, so you need to have alternatives, so you don’t compromise your financial health.

Therefore, taking out insurance is a strategy to protect yourself from unexpected expenses. And it can be pretty cheap.

There is life insurance on the market starting at R$9 per month. According to data from the Superintendence of Private Insurance (Susep), the segment registered an increase of 11.3% in 2020, compared to the previous year.

Many hires came from young people between the ages of 18 and 30. Unemployed and without social security benefits, due to the Covid-19 pandemic, they saw in this service a means of ensuring assistance for serious illnesses, hospitalization, temporary disability, or eventual surgeries.

Tips for taking out insurance

Now that you know a little more about insurance, here are some tips to get the contract right:

  • Make sure the policy covers all your needs;
  • Inform yourself about deductible and premium values ​​(indemnity);
  • Research the insurer’s reputation;
  • Comply with all terms of the contract;
  • Make sure you pay your monthly fees on time.

Did you like it? We hope today’s content was helpful. Take the opportunity to keep an eye on the blog, which will soon bring more information about investments and personal finances. Until then!

By aamritri

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