Week 7 Discussion Question

Week 7 Discussion Question 1
To me having insurance means that you are guaranteed of your properties, life, and other matters if in case something happens to you. You will sign a contract and that will serve as the basis for anything that might possibly happen. There will be an agreed amount for such coverage made by you and the insurance company you are into. Pretty much you are covered from al the mishaps in life.
Life Insurance: How Life Insurance Works
Like other insurance products, life insurance is based on the concept of risk pooling. You pay a premium that is small relative to the size of your potential loss, and if the bad outcome occurs (you die), your beneficiaries are paid a sum of money, which they can use to offset any losses incurred as a result of your death.
Car Insurance: Property Damage
Your automobile property risk includes the risk that you will be liable for other people?s property losses as well as the risk that your own property will be damaged or stolen. As noted, Part A of the PAP covers your liability for property damage to others. Coverage for loss or damage to your own property is optional under Part D of the PAP.
Part D includes both collision coverage, which insures you against loss or damage to your vehicle if you are in an accident, regardless of who is at fault, and comprehensive physical damage coverage, which covers loss or damage to your vehicle from any other peril (e.g., fire, theft, a falling object, hitting a deer on the road).

Week 7 Discussion Question 2
In an insurance policy, the deductible is the portion of any claim that is not covered by the insurance provider. Basically it is the amount of expenses that must be paid out of pocket by the policy holder before an insurance company will cover or pay any insurance benefits for the accident or damages. Typically, the general rule is: the higher the deductible, the lower the premium, and the lower the deductible, the higher the premium. So if Angie were to change from her current policy and get into a car accident and has the $1,000 deductible instead of the $500 deductible, she would not have to pay more money before the insurance company would fix the rest of the car. Basically, until Angie paid the deductible her car would remain unfixed. However, if the damage is less than $1,000 then Angie would be responsible for the repairs herself because that?s how much her deductible would be.