Covering Your Bases: Insurance Basics Everyone Should Know

Life is full of surprises and while we can't predict the future, we can prepare for it. That's where insurance comes in. Building a secure financial foundation starts with understanding how to protect your assets and your family. Here is a quick guide to insurance basics everyone should know.

There are four core types of insurance:
Health Insurance – Health insurance helps cover medical, surgical, and sometimes dental and vision expenses. Even if you're young and healthy, having a basic plan is essential to protect yourself from unexpected and overwhelming medical debt.
Auto Insurance – Auto insurance protects you against financial loss in the event of a crash or theft. A comprehensive policy typically covers damage to your vehicle, liability for injuries or damage you cause to others, and medical bills.
Homeowners and Renters Insurance – Homeowners insurance protects your house and belongings against unexpected disasters like fire, theft, and severe weather damage. Renters insurance protects your personal property and provides liability coverage.
Life Insurance – Life insurance provides a tax-free lump sum to your beneficiaries in the event of your passing. This money can be used to cover daily living expenses, pay off a mortgage, or fund a child's education, ensuring your loved ones are taken care of during a difficult time.

Here are a few key insurance terms to understand:
Premium – The amount you pay to keep your insurance policy active, usually billed monthly, semi-annually, or annually.
Deductible – The amount you must pay out of your own pocket before your insurance starts covering the costs. Generally, choosing a higher deductible means a lower monthly premium, and vice versa.
Coverage Limit – The maximum amount your insurance company will pay for a covered loss.
Claim – A formal request you make to your insurance provider to pay for an incident covered by your policy.

Your insurance needs will evolve as your life changes. Major milestones like getting married, buying a home, starting a business, or having a child are all clear signs that it is time to review your coverage.

If you have questions about your insurance needs, reach out to Ohnward Insurance Group, our one-stop shop for all your comprehensive insurance needs. As an independent agency, Ohnward Insurance Group works with several companies, allowing us to provide the best pricing and coverage for our customers. Our experienced agents will work with you to find coverage to fit your individual needs. We're always here to help you protect what matters most!