Insurance protects you from financial hardship when life’s unexpected events occur. Health, dental, home, car and trip insurance help you recover from loss or injury.
By pooling premiums and investing them, insurers can cover costs if a claim is made. Understanding how it all works can help you make the best decision about your coverage.
small business health insurance
short-term disability insurance
Home insurance and hazard insurance
How it Works
Insurance is a form of protection against unforeseen losses that may occur in life, whether it’s damage to your home from a fire or an unexpected medical expense for a serious illness. You pay a small amount of money, called a premium, in exchange for the promise that the insurance company will pay a larger sum should a loss happen. The purpose of insurance is to give people peace of mind and the ability to plan without worrying about financial disaster.
Insurance companies work with experts to design specific plans for various circumstances and risks. You can choose to purchase your plan directly from the insurer, or you can go through an independent agent or commercial broker who sells a variety of insurance products from many different providers. Your agent will have detailed knowledge about all the products that are available and can answer your “what if” questions.
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For most types of insurance, when you experience a loss or need to use your coverage, you submit a claim to the insurance company. They review the request and pay you or your service provider, depending on policy terms. You should know what your deductible and coinsurance amounts are before you go to the doctor or get care, as these will be required before your insurance pays for anything. Some health insurance plans require a copay for preventive care, while others cover 100% of your medical expenses.
When you make an insurance claim, the process is often very quick and easy. It helps that insurance companies are regulated by the government at both the federal and provincial levels. This ensures that they are financially sound and must have a third-party dispute resolution system in place to handle any consumer complaints.
