“Shielding Your Assets: A Guide to Insurance”

Insurance is a contract between you (or your business) and an insurer to help protect against financial loss from unforeseen circumstances. It provides a safety net to protect your finances, assets, and most importantly those you care for the most.


Insurance policies mobilize domestic savings to provide financial stability and direct them toward loss mitigation. It also fosters the habit of regular saving and helps to improve financial discipline. To learn more, visit

A contract between an insurer and a policyholder in which the insurer promises to pay a specified beneficiary a sum of money upon death (or other events triggered by the policy). The death benefit and premium are subject to underwriting, and vary among providers. Life insurance is regulated at the state level, with states adopting laws and NAIC model regulations to protect consumers and encourage informed decision making.

Several types of life insurance are available to fit your unique needs, including term life, whole life, variable universal life, and universal life. Other options include simplified issue and guaranteed life insurance policies, which don’t require medical underwriting or exams. Some policies also offer riders, which are optional add-ons that can be used to customize coverage.

If you miss a premium payment, most policies have a 30-day grace period to allow you to pay the missed amount without incurring interest charges. If you die during the grace period, your beneficiaries will receive the death benefit minus the unpaid premium. If you miss more than one premium, your life insurance will lapse, and to reinstate the policy, you’ll need to repay any loans against the policy or undergo a new health exam and medical underwriting.

Health Insurance

Health insurance is a form of risk pooling that covers all or a portion of a person’s healthcare expenses in exchange for a monthly premium. Health insurance may be private or public, such as through a workplace or a national plan like Medicare and Medicaid. The type and amount of healthcare expenses covered is negotiated between the insurance provider and the insured, outlined in either a member contract (or Evidence of Coverage booklet for private insurers) or a national [health policy] document for public insurance.

The health insurance industry has many subtypes of policies: indemnity plans which pay for hospitalization costs, and fixed benefit plans which pays a set sum for pre-decided diseases, or preventive care. Depending on the specific policy, there are also deductibles and co-payments that need to be paid by the insured before the health insurance starts to pay.

In the United States, the Centers for Disease Control and Prevention conducts a survey called the Current Population Survey (CPS), which produces annual estimates of insurance coverage. The CPS is the most widely used source of data on insurance coverage. Although the range of estimates derived from different surveys can be large, the Committee considers differences in methodology less critical to its overall analysis than the order of magnitude of the variation between estimates.

Property Insurance

Property insurance reimburses policyholders for their financial losses related to the damage, destruction, or theft of physical property. It covers both buildings and personal property inside them, and it can be designed for individuals or businesses. It also typically includes liability coverage in case someone other than the owner or renter of a building gets hurt on the property. Some examples of property insurance include homeowner’s insurance, renter’s insurance, and commercial property insurance.

A homeowners’ or renter’s property insurance policy can protect your residence and its contents against a variety of perils including fire, some types of weather damage, and theft. It can also cover some of your living expenses if you are forced to temporarily leave your home during repairs. In addition to providing financial support, property insurance can provide peace of mind knowing that you have protection in place for the things you own and care about most.

Some property insurance policies may have additional options such as loss of use, which can pay for your lodging and food if you need to leave your home while it’s being repaired. Others may include coverage for valuable items and earthquake insurance, which can be important if you live in an area that is susceptible to these natural occurrences.

In the business world, property insurance can cover your company’s inventory, equipment, furniture, and tools if they are damaged or destroyed by a covered peril. It is often combined with general liability insurance in a package called a business owners policy (BOP) or sold separately as commercial property insurance and inland marine insurance. It can also include coverage for business interruption, which reimburses your company for lost income if a covered event forces you to close. Some companies sell property insurance with rates that seem unbelievable – be careful to shop around and look at a number of different options before buying. You want to be sure you have enough coverage to rebuild your business and replace all your inventory if necessary.

Commercial Insurance

Whether you own a small business or are part of a large corporation, commercial insurance is an important investment. Commercial policies help protect the assets of your company, including property, inventory, employees and vehicles. It can also cover lawsuits and other financial damages that could halt your business. A business owner needs a variety of policies, depending on the industry and risks involved. Many policies are mandatory, like workers’ compensation and commercial auto insurance. Others are recommended, such as commercial general liability and professional liability.

There are many types of business insurance, so it’s important to talk to a licensed agent or broker to find the right coverage for you. Some of the most common commercial insurance include business income insurance, which replaces lost revenues in the event your company is forced to close; commercial property insurance, which covers damage or loss to the equipment you own, including furniture, signage and inventory; and crime insurance, which protects against burglary, computer fraud and employee dishonesty.

Many small businesses may be able to save money on their premiums by bundling their commercial insurance policies with other policies, such as workers’ compensation and automobile insurance. This can be done by contacting the provider directly or working with a licensed broker to compare rates. The cost of a policy depends on various factors, such as the type of business, location, payroll, years in business and exposures. A policy’s deductible can be a significant factor as well; this is the amount of the claim you must pay before your insurance kicks in.

Health insurance in the commercial market is a form of group insurance that’s primarily provided by employers as a benefit to their employees. In some cases, the employer pays the entire premium. However, there are also a number of private-sector options available. For example, there are private insurers that offer individual and family plans, as well as employee-sponsored group plans. There are also government-sponsored programs, such as Medicare and Medicaid, which provide medical benefits to certain groups of people.

While some business owners think that commercial insurance is unnecessary, it’s important for any company to have the proper coverage. A large enough claim can quickly put a small business out of operation, so it’s best to play it safe and have the appropriate coverage in place.