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Financial Planning

Explore our financial planning articles to learn everything you need to know.

Insurance BasicsUnderstanding Insurance+3

What is Insurance? A Beginner's Guide to Understanding Coverage

What is Insurance? A Beginner's Guide to Understanding Coverage

Confused about insurance? This beginner's guide breaks down the core concepts of insurance, including premiums, deductibles, and how coverage truly works, to help you understand this essential financial protection.

IE
Insurance Expert
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Insurance ReviewAnnual Policy Check-up+3

The Importance of Reviewing Your Insurance Coverage Annually

The Importance of Reviewing Your Insurance Coverage Annually

Discover why reviewing your insurance coverage annually is crucial. Identify coverage gaps, unlock savings, and ensure your policies truly protect your evolving life.

IE
Insurance Expert
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Insurance QuotesSave Money+3

How to Compare Insurance Quotes Like a Pro and Save Money

How to Compare Insurance Quotes Like a Pro and Save Money

Learn how to compare insurance quotes effectively, identifying hidden value and ultimately saving money on your policies with expert strategies. Stop overpaying today!

IE
Insurance Expert
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Term Life InsuranceWhole Life Insurance+3

Term Life vs. Whole Life Insurance: Which One is Right for You?

Term Life vs. Whole Life Insurance: Which One is Right for You?

Unsure about life insurance? This guide clarifies Term Life vs. Whole Life Insurance, explaining key differences to help you choose the best policy for your financial future.

IE
Insurance Expert
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Life InsuranceLife Insurance Needs+3

How Much Life Insurance Do You Actually Need? A Calculation Guide

How Much Life Insurance Do You Actually Need? A Calculation Guide

Struggling to know your life insurance needs? This guide reveals how to calculate the right coverage using the DIME method, ensuring your loved ones’ financial security.

IE
Insurance Expert
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Multiple Life Insurance PoliciesLife Insurance Strategy+3

Can You Have Multiple Life Insurance Policies?

Can You Have Multiple Life Insurance Policies?

Yes, you can have multiple life insurance policies. Learn why stacking coverage is a smart financial strategy, how it works, and key considerations for maximizing your family's protection.

IE
Insurance Expert
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Long-Term Care InsuranceFuture Healthcare Needs+3

Long-Term Care Insurance: Planning for Future Healthcare Needs

Long-Term Care Insurance: Planning for Future Healthcare Needs

Demystify Long-Term Care Insurance. Learn how this crucial policy helps plan for future healthcare needs, protects your assets, and ensures dignity in later life.

IE
Insurance Expert
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Insurance BasicsUnderstanding InsuranceInsurance CoverageBeginner GuideAuto InsuranceCar InsuranceLiability CoverageComprehensive CoverageCollision CoverageOpen Enrollment Period

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Frequently Asked Questions About Financial Planning

Insurance is a contract between you and an insurance company that provides financial protection against specific losses or risks. You pay a premium, and in return, the insurer agrees to cover certain costs if a qualifying event occurs. You need insurance to protect yourself from potentially devastating financial losses that could result from unexpected events like accidents, illnesses, natural disasters, or liability claims.
A deductible is the amount you pay out-of-pocket before your insurance coverage begins. For example, if you have a $500 deductible and experience a $3,000 loss, you'll pay the first $500, and your insurance will cover the remaining $2,500. Generally, choosing a higher deductible results in lower premium payments, while a lower deductible means higher premiums but less out-of-pocket expense when you file a claim.
Insurance premiums are calculated based on several factors, including: your risk profile (age, health, driving record, etc.), coverage amount and type, deductible level, location (different regions have different risk levels), claims history, credit score (in many states), and industry data on similar risks. Insurance companies use statistical models to determine the likelihood you'll file a claim and price your policy accordingly.
An insurance agent represents one or more specific insurance companies and sells policies on their behalf. They work for the insurer and are typically paid through commissions. An insurance broker, on the other hand, works for you (the client) and shops around different insurance companies to find you the best coverage and rates. Brokers typically have access to more options but may charge fees or still earn commissions from insurers.
To file an insurance claim: 1) Report the incident immediately to your insurance company through their website, mobile app, or by calling their claims department. 2) Document everything related to the incident (photos, videos, police reports, medical reports). 3) Fill out the claim forms provided by your insurer with accurate information. 4) Submit all required documentation. 5) Work with the assigned claims adjuster who will evaluate your claim. 6) Follow up regularly until your claim is resolved.