John Aaron M.

Domantay
Mary May Esguerra
April Barrido
Insurance- a practice or arrangement by which a company or government agency provides a
guarantee of compensation for specified loss, damage, illness, or death in return for payment of
a premium.

Questions:

1.) How to make the most out of your insurance?

2.) How to choose the right insurance?
3.) What will you do if you are denied coverage?
 Law I: Insure for the big stuff; don’t sweat the small stuff

You want to insure against what could be a huge financial loss for you or your dependents. The
price of insurance isn’t cheap, but it’s relatively small in comparison to the potential total loss from
a financial catastrophe.

Example of potential large expenses:

1.) Future Income
2.) Business
3.) Health

Avoid Small potato policies

Choose the highest deductible possible to save more money:

Deductibles-The amount you pay for covered health care services before your insurance plan starts to pay.

With a P2000 deductible, for example you pay the first P2,000 of covered services yourself.
After you pay your deductible your insurance company pays the rest.

For the insurer, a higher deductible means you are responsible for a greater amount of your initial health care
costs, saving them money. For you, the benefit comes in a lower monthly premiums.
 Law II: Buy broad coverage

Purchasing coverage that’s too narrow is another major mistake people make when buying insurance.
For example, instead of buying life insurance, some folks buy flight insurance at an airport selfservice
kiosk.
Buy life insurance (broad coverage to protect your loved ones financially in the event of your death no
matter how you die), not flight insurance (narrow coverage)

The medical equivalent of flight insurance is cancer insurance. Older people, who are fearful of
having their life savings depleted by a long battle with this dreaded disease, are easy prey for
this narrow insurance. If you get cancer, cancer insurance pays the bills. But what if you get
heart disease, diabetes, or some other disease? Cancer insurance won’t pay these costs.
Purchase major medical coverage, not cancer insurance.
 How to Choose the Right Insurance:

7 Factors to Consider

1.) Company History/Reputation

2.)Understand the insurance company’s financial strength
3.)Coverage
4.)Price
5.) Ease of Doing Business
6.)Available Discounts
7.)The power of referrals

When not to buy Insurance:

While you want to ensure that you're adequately protected, there are a lot of
insurance policies that are unnecessary for most people. Purchasing the wrong insurance—or
spending too much on insurance—can do more harm than good
 Knowing what to do if you’re denied coverage:

1.) Ask the insurer why you were denied

2.) Shop other companies
3.) Check for coverage availability before you buy.

Insurance is a large investment and you will most likely purchase multiple policies
throughout your lifetime. You do not want to waste your money on policies that do not meet
your needs, but the right insurance policy can protect you and your family from unforeseen
disasters.