Insurance Resources and Advice

    Insurance is sometimes a legal requirement and often a good idea. Understand the different types of insurance, read company reviews, get help with claims, and learn how to save money on health, life, home, auto, and other types of coverage.

    Frequently Asked Questions

    • What does insurance mean?

      The premise of insurance is to transfer risk from one or more people, a business, or an entity to a group of insureds that pay premiums into a pool; it’s from this pool of premiums that losses from covered perils are paid. An insurance policy is a contract between an insurance company and at least one individual in which the insurer agrees to pay specified damages in exchange for a premium.

    • What are the benefits of insurance?

      Insurance can provide peace of mind when you don’t need it, and can be a financial life raft when you do. Health insurance, for example, covers costly possibly unaffordable, medical bills if you become ill or injured; auto insurance can pay to replace your totaled car; and life insurance can enable your family to survive without your income.

    • What are the 4 types of insurance you need?

      Auto, homeowners or renters insurance, health, and life insurance are some of the most important types of coverage. If you drive, you need auto insurance; if you rent or own, you’ll need renters or homeowners insurance. Health insurance protects you from having to pay for unaffordable medical procedures if you get hurt or sick. And life insurance is crucial if you have children or others who depend on you.

    • How do insurance companies make money?

      Insurance companies profit from premiums and also invest heavily in a range of financial securities, primarily consisting of bonds. Some state regulators evaluate investment returns to determine if insurance companies are charging consumers rates that are too high or low.

    • What are the 5 parts of an insurance policy?

      The five main parts of your policy are:

      • Declarations page: Lists your policy’s key details
      • Insuring agreements: What your insurer promises to do/not do and who/what is covered
      • Exclusions/limitations: What’s excluded from coverage and maximum claim payouts
      • Conditions: Requirements you must meet for coverage and claim payouts
      • Definitions: Defines common words with special meanings
    • What are the types of life insurance?

      The two main types are term and permanent. Term life insurance is valid for a set period of time, usually one to 30 years, and pays a death benefit only if you die within that time frame. Permanent life insurance is designed to last throughout your life and pays a death benefit as long as you have an active policy. Both term and permanent policies have additional types available as well.

    • What is an insurance quote?

      An insurance quote estimates the premium you'd pay for insurance coverage based on information you provide. A quote usually details policy specifics such as deductibles, coverage limits, riders, and the types of coverage offered. A quote is not an offer of insurance and your final premium may differ, depending on the additional information you provide on the application.

    Key Terms

    A man and a woman stand face to face in a business setting.
    Compensatory Damages
    A person in business attire writes on a tablet.
    Insurance Adjuster
    A woman in an office setting looks at a tablet
    Waiver of Subrogation
    A woman carries a moving box into a house
    Home Insurance Quote
    An older couple enjoys the outdoors.
    1035 Exchange
    Person walking and holding the hands of two children outside
    How To Find Out If You’re Eligible for Medicaid
    Lawyer presenting evidence during trial
    Joint and Several Liability
    A judge listens to a case.
    Woman making a phone call while trying to stop a leaking kitchen sink pipe
    Ex Gratia Payment
    A woman is sitting on a couch reading a document.
    Insurance Endorsement
    Couple signing paperwork with an insurance agent
    Insurance Actuary
    Mother using smartphone while toddler sitting on lap at doctor's office
    Patient Protection and Affordable Care Act
    Young family of five walking through meadow in Autumn
    Insurable Interest
    how does an A-rated insurance company work
    A-Rated Insurance Company
    A psychologist talks with a patient.
    Does Insurance Cover Therapy?
    An injured person talks on the phone.
    Accident Insurance
    A dentist works on a patient
    How Much Is Dental Insurance?
    A resident lounges on a condo balcony
    HO-6 Insurance
    Friends eating healthy at home
    What Is Casualty Insurance?
    A doctor examines a patient.
    Evidence of Insurability
    Blurred shot of emergency medical technicians wheeling a gurney with a patient on it away from ambulance
    What You Need To Know About Medicare Coverage for Ambulance Rides
    An individual drives their new car.
    How Much Car Insurance Do I Need?
    Builder eating packed lunch looks at documents on construction site
    Accidental Death Benefit
    Insurance agent going over paperwork with a couple
    Insurance Carrier
    A large tree limb has fallen through the roof of a formerly neat and tidy home.
    Recoverable Depreciation
    A construction worker uses an automatic hammer on a concrete and brick wall
    Dwelling Coverage
    A doctor talks to a patient.
    Health Insurance Premium
    how does an insurance declaration work?
    Insurance Declaration Page
    Insurance agent meeting with clients in their home
    Property Insurance
    couple providing documents for new home with agent
    Understanding Your Insurance Binder and What it Means
    A medical professional wearing scrubs uses a touch screen tablet
    Medical Loss Ratio
    Young person using a computer during in an office
    What Is a Claims Reserve?
    People meeting in an office.
    Bank-Owned Life Insurance (BOLI)
    Young couple sitting on floor of apartment against sofa
    Renters Liability Insurance
     Home healthcare nurse checks blood pressure of senior woman
    Commercial Health Insurance
     Employees attend a corporate meeting.
    Group Term Life Insurance
    A couple meeting with a consultant to discuss paperwork at home
    Nonforfeiture Clause
    A person works on a laptop.
    Loss Ratio
    Doctor speaks with mother and young son in waiting room
    Capitation Payments
    A person stands behind a loved one in a wheelchair.
    Total and Permanent Disability
    Doctor with digital tablet talks to patient in exam room
    Open Enrollment
    Older woman talking to doctor in office
    Point-of-Service Plan (POS)
    A doctor examines a patient.
    Health Reimbursement Arrangement (HRA)
    A couple gets advice from an insurance broker.
    Insurance Broker
    A woman sits in a dentist’s chair, smiling.
    What Does Dental Insurance Cover?
    Large fallen tree on top of roof it cracked in storm.
    What Is Indemnification?
    A renter moves into an apartment
    Is Renters Insurance Required?
    A construction worker repairs a roof.
    Does Homeowners Insurance Cover Roof Leaks?
    A smashed and overturned SUV lies on the lawn in front of a wind-damaged home.
    Property and Casualty Insurance
    A family of four plays football in front of a home.
    A Guide to Homeowners Insurance Deductibles
    Focus on your commute
    How to Be More Mindful About Driving
    Drive on the open road
    Going the Extra Mile
    Camping at sunset
    Does Your Insurance Reflect Your Lifestyle?
    Man using walker is helped by nurse with digital tablet
    Standard & Poor's Insurance Ratings
    Types of Insurance Policies You May Need in Your Lifetime: health insurance, life insurance, disability insurance, homeowners and renters insurance, and auto insurance
    Types of Insurance Everyone Should Have
     Business Woman explaining an insurance plan to a senior couple
    Exclusion Ratio
    Senior couple using laptop with paperwork at home
    Can You Have Medicaid and Private Insurance?
    Person with a broken leg, talking on the phone
    Structured Settlements
    An older couple hug each other and smile on the beach.
    Reduced Paid-Up Insurance
    A person tends to plants.
    Does Medicare Pay for Wheelchairs?