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What are Insurance Premiums, Anyway?
Insurance is something that protects you and your loved ones in the event of an emergency.
Basically, you pay an insurance provider or company a monthly premium or payment so that they will provide you with funds when an emergency or accident occurs.
The amount you pay each month depends on how risky an investment you are. Different types of insurance will have different requirements.
The following includes some basic information about the different types of insurance that are currently available.
Health insurance is a common type of plan to invest in. You pay the company a certain amount each month so that the company will then cover services, treatment, and medications that are meant to keep you healthy.
Health insurance rates are affected by the size of the deductible: i.e. the amount you pay before the insurance kicks in. Additionally, your health will play a major role when it comes to rates.
If you are overweight, need constant care, and engage in risky behaviors like smoking, you can bet that your rates will be high.
Life insurance is a plan that covers your family in the event that you pass away. You pay a provider a premium each month so that they will distribute funds to beneficiaries when you die.
The health you're in plus the size of the payout determine how costly such a plan will be.
Auto insurance protects your car if you are in an accident or in the event of a natural disaster affecting your vehicle.
Your driving experiences, record, and the type of car you drive affect this type of plan. The size of the deductible is also a factor as well as your age and gender: the older you are, the less you will have to pay, especially if you are a woman.