FAQs
Frequently Asked Questions About Insurance
1. What is insurance?
Insurance is a contract where you pay premiums in exchange for protection against financial risks like accidents, illness, or theft.
2. Why do I need insurance?
Insurance helps protect your finances from unexpected losses and emergencies—health issues, car accidents, natural disasters, etc.
3. What are premiums?
Premiums are the regular payments you make (monthly/yearly) to keep your insurance active.
4. What is a deductible?
It's the amount you pay out-of-pocket before your insurance starts covering the rest.
5. What is a policyholder?
The policyholder is the person who owns the insurance policy and is responsible for it.
6. Is auto insurance mandatory?
Yes, in most regions, it's legally required to have at least liability insurance to drive a vehicle.
7. What does liability auto insurance cover?
It covers injuries or property damage you cause to others while driving.
8. What is comprehensive auto insurance?
Comprehensive covers damage to your car from non-accident events like theft, fire, or storms.
9. Will my premium increase after an accident?
Yes, especially if you're at fault. Some insurers offer accident forgiveness.
10. Does my car insurance cover rental cars?
Sometimes. Check with your insurer—coverage varies by policy.
11. What is health insurance?
It helps pay for medical costs like doctor visits, surgeries, and medications.
12. What is an HMO vs. PPO?
HMO = in-network care with referrals. PPO = more flexibility, no referral needed.
13. Can I get health insurance without a job?
Yes, through private insurers, government programs, or online marketplaces.
14. What does health insurance not cover?
It often excludes cosmetic surgery, experimental treatments, or elective procedures.
15. What is a copay?
A fixed fee you pay for medical services like doctor visits or prescriptions.
16. What is life insurance?
Life insurance pays your beneficiaries a lump sum after your death.
17. What's the difference between term and whole life insurance?
Term = fixed time period. Whole life = lifetime coverage with cash value.
18. Do I need life insurance if I’m single?
Possibly—especially if you have debt, dependents, or want to cover funeral costs.
19. Can I change my life insurance beneficiaries?
Yes, anytime by updating your policy with your insurer.
20. Is a medical exam required for life insurance?
Not always. No-exam policies exist but may cost more.
21. What does renters insurance cover?
It covers your belongings, liability, and temporary housing if needed.
22. Is renters insurance mandatory?
Not legally, but many landlords require it.
23. What’s the difference between renters and homeowners insurance?
Renters = covers belongings. Homeowners = includes building structure too.
24. Does renters insurance cover roommates?
No, unless they're listed. Each roommate should have their own policy.
25. How much renters insurance do I need?
Enough to replace all your belongings—typically $20k–$100k.
26. What is business insurance?
It protects companies from financial losses due to property damage, lawsuits, or accidents.
27. Do freelancers need business insurance?
Yes, especially for liability protection and client-related claims.
28. What is crypto insurance?
It protects digital assets like Bitcoin from theft, hacking, or loss.
29. Can digital nomads get travel health insurance?
Yes, many insurers offer global health plans for remote workers.
30. Is insurance cheaper if I bundle multiple policies?
Often yes—many providers offer discounts for bundling (like home + auto).
