FAQ

Life insurance is a contract between you and an insurance company. You pay regular fees (called premiums), and in return, the company promises to pay a set amount of money (a death benefit) to your family or chosen beneficiaries when you die. 

It gives financial protection to your loved ones. If you die unexpectedly, life insurance can help cover funeral costs, debts, children’s education, daily living expenses, or any other needs your family may have. 

Anyone who has people depending on them financially. Parents, breadwinners, homeowners with a mortgage, or even business owners may need life insurance to protect their family or partners. 

Term Life Insurance: covers you for a specific period (e.g., 10, 20, or 30 years).

Whole Life Insurance: covers you for your entire life and builds cash value over time.

Universal Life Insurance: flexible coverage with investment or savings features. 

Term Life: cheaper, only provides protection for a set time. If you live past the term, coverage ends.

Whole Life: more expensive but lasts your entire life and can also serve as an investment because it builds cash value. 

It depends on your family’s needs, debts, income, and future plans. A common rule is to buy coverage worth 10–15 times your annual income, but it’s best to calculate based on your personal situation. 

If you stop paying, your policy may lapse (end), and your family will not receive any benefit if you die. Some whole life or universal life policies may use the built-up cash value to cover unpaid premiums for a while. 

The cost (premium) depends on age, health, lifestyle, coverage amount, and type of policy. Younger and healthier people usually pay much less than older people or those with health risks.  

Yes, but the cost may be higher. Some companies may ask for a medical exam. Others offer “no exam” or “guaranteed issue” policies, but those usually come with higher premiums and lower coverage. 

Yes. Many people combine policies, such as having one term policy for large debts (like a mortgage) and another whole life policy for lifelong coverage. 

Mostly yes, but some policies have living benefits. For example, some plans pay out if you are diagnosed with a terminal illness, or allow you to borrow against the policy’s cash value while you’re alive. 

Life insurance is a contract between you and an insurance company. You pay regular fees (called premiums), and in return, the company promises to pay a set amount of money (a death benefit) to your family or chosen beneficiaries when you die. 

Yes. Many people combine policies, such as having one term policy for large debts (like a mortgage) and another whole life policy for lifelong coverage. 

In most countries, life insurance payouts to beneficiaries are tax-free. But if the policy has an investment component (like whole or universal life), any earnings may be taxed depending on local laws. 

The earlier, the better. Premiums are lowest when you are young and healthy. Waiting until you are older or sick usually means paying much higher costs or being denied coverage. 

Health insurance is an agreement between you and an insurance company. You pay a regular fee (called a premium), and in return, the company helps cover your medical costs such as doctor visits, hospital stays, medicines, or surgeries. 

It depends on the plan, but most policies cover doctor visits, hospital care, emergency services, prescribed medicines, surgeries, and sometimes preventive care like vaccines or health checkups 

Premium: the regular amount you pay (monthly or yearly) to keep your insurance active.

Deductible: the amount you must pay yourself before the insurance starts covering costs.

Copayment (copay): a small fixed fee you pay when you visit a doctor or buy medicine. 

Think about your health needs: how often you see doctors, if you take regular medicines, or if you have ongoing conditions. Also consider your budget. The right plan balances coverage (what it includes) and affordability (what you pay). 

• HMO (Health Maintenance Organization): you must choose a primary doctor and usually stay within a specific network of providers.
• PPO (Preferred Provider Organization): more flexibility, you can see any doctor, but it’s cheaper if you use doctors in the plan’s network.

(Note: these terms are common in some countries; other places may use different plan types.) 

Yes. You may:

• buy an individual plan directly from an insurance company,
• join a family plan (through a spouse or parent),
• or in some countries, qualify for government-supported programs for unemployed or low-income people. 

Public insurance is provided or supported by the government (sometimes free or low-cost).

Private insurance is bought from a private company and usually gives more choices but costs more. 

They may consider your age, location, medical history, family size, and lifestyle habits (like smoking). Each company and country can have different rules. 

In many countries, yes — insurers cannot refuse you because of a past illness. But in some places, there may be waiting periods before coverage starts for those conditions. Always check the policy details.  

If you don’t pay your premium on time, your coverage may stop after a short grace period. That means you would have to pay all medical costs yourself until your insurance is restarted. 

It depends on the plan. Some allow you to choose any doctor, while others require you to use doctors in their network. Using doctors outside the network may cost more. 

Many plans cover preventive care like vaccinations, screenings for diseases, and regular checkups, often at no extra cost. This helps catch health problems early. 

In many modern plans, yes. Coverage may include therapy sessions, psychiatric consultations, and medicines for mental health. But the level of coverage depends on your country and insurance provider. 

You should ask for a written explanation. If you believe it’s a mistake, you can file an appeal or complaint. In some countries, there are independent organizations or regulators that can review your case. 

Because medical care can be very expensive. Even a simple emergency can cost more than most people can pay at once. Insurance protects you financially and ensures you can access treatment when you need it. 

Car insurance is a contract between you and an insurance company. You pay regular fees (premiums), and in return, the company helps pay for costs if your car is damaged, stolen, or if you cause an accident that injures others or damages property. 

Because accidents can be very expensive. Insurance protects you from paying all costs yourself, such as repairs, medical bills, or damage to other people’s property. In many countries, it’s also required by law. 

Common types include:

• Liability insurance: pays for damage or injury you cause to others.
• Collision insurance: pays for repairs to your own car after an accident.
• Comprehensive insurance: covers theft, fire, natural disasters, or damage not caused by a crash.
• Personal injury protection / Medical cover: helps pay medical costs for you and passengers. 

Car insurance is a contract between you and an insurance company. You pay regular fees (premiums), and in return, the company helps pay for costs if your car is damaged, stolen, or if you cause an accident that injures others or damages property. 

Insurance companies look at factors like your age, driving history, type of car, where you live, how often you drive, and coverage amount. Safe drivers usually pay less, while frequent accidents or traffic violations raise the cost. 

A deductible is the amount of money you pay yourself before the insurance company pays the rest. For example, if your deductible is $500 and repair costs $2,000, you pay $500 and the insurer pays $1,500. 

In many countries, driving without insurance is illegal. You may face fines, lose your license, or even jail time. And if you cause an accident, you must pay all costs yourself. 

It depends on your policy. Some policies cover anyone you allow to drive your car; others only cover named drivers. Always check your plan to be sure. 

Some policies include coverage for rental cars, but not all. If not, you may need to buy temporary coverage from the rental company. 

Drive safely and avoid accidents.

Choose a higher deductible (if you can afford it).

Compare quotes from different companies(you can compare easely reading our blogs ).

Install safety devices (alarms, anti-theft).

Bundle insurance (car + home) with the same company. 

Car insurance is a contract between you and an insurance company. You pay regular fees (premiums), and in return, the company helps pay for costs if your car is damaged, stolen, or if you cause an accident that injures others or damages property. 

Yes, but only if you have comprehensive coverage. Basic liability insurance does not cover theft. 

Collision: covers your car when it’s damaged in an accident with another vehicle or object.

Comprehensive: covers non-accident events like theft, fire, floods, storms, or vandalism. 

In most cases, car insurance follows the car, not the driver. That means your insurance may cover the damage even if someone else was driving. But this can raise your rates later. 

Because insurance companies see you as a higher risk once you’ve been in an accident. Even if it wasn’t your fault in some cases, your premium may go up at renewal. 

Home insurance is a contract with an insurance company that protects both your house and the things inside it. If something unexpected happens — like fire, storm damage, burglary, or even someone getting injured on your property — the insurance company helps pay the costs. Without it, you would pay everything yourself. It’s not just about the building but also about protecting your family’s financial stability. 

For most people, their home is their largest investment. Imagine your house catching fire or being hit by a severe storm — rebuilding costs could be hundreds of thousands of dollars. Very few people can afford that out of pocket. Home insurance ensures you don’t lose everything after one disaster. It also protects against lawsuits if someone is hurt at your home. 

Most standard policies cover four main areas:

1. Dwelling coverage – the actual structure of your house.
2. Personal property – furniture, clothes, appliances, and electronics.
3. Liability protection – if a visitor slips, falls, and sues you.
4. Additional living expenses – hotel or rental costs if your house becomes unlivable. 

In most countries, no government law forces you to buy home insurance. But if you have a mortgage, your bank or lender will almost always require it — because they want to protect the property they financed. Even if it’s not required, going without insurance is a huge risk. 

You need enough to completely rebuild your home if it is destroyed — not just its market value. For example, if your home could sell for $200,000 but rebuilding it after a fire would cost $250,000, you need at least $250,000 in dwelling coverage. Also, estimate the value of your belongings and add coverage for them. 

It depends on many factors:

• The value and size of your home.
• Location (flood zones, crime rates, earthquake areas).
• The materials your house is built with.
• Your claims history and credit record.

  Globally, it can range from a few hundred dollars per year for small homes to thousands for high-value properties. 

Most standard policies exclude:

• Floods and earthquakes (you need separate coverage).
• Normal wear and tear (a leaking roof due to old age won’t be covered).
• Infestations like termites or rodents.
• Intentional damage caused by the homeowner. 

It depends. Fires, windstorms, hail, and lightning are usually included. But earthquakes, floods, and hurricanes in some regions often require separate policies. This is one of the biggest surprises for homeowners — many think all natural disasters are covered, but they’re not. 

Yes. If burglars break in and steal valuables, your insurance will pay you the value of what was lost (up to certain limits). Some policies even cover items stolen outside the home — like if your laptop is stolen from your car. However, very expensive items (jewelry, art, collectibles) often need extra coverage.  

Report the incident to your insurer immediately.

Take photos and videos of the damage or stolen items.

Provide receipts, police reports (if theft), and any proof of ownership.

Fill out a claim form from your insurance company.

An adjuster may visit your home to inspect. 

Yes — it’s called renters insurance. It doesn’t cover the building (that’s your landlord’s responsibility) but it protects your belongings and gives liability protection. For example, if your neighbor’s apartment is damaged because of your actions, renters insurance can cover it. 

Yes. Common ways include:

• Installing alarms, smoke detectors, and cameras.
• Bundling your home and car insurance with the same company.
• Raising your deductible (but be sure you can afford it if something happens).
• Shopping around and comparing multiple insurers. 

It protects you against lawsuits. For example: a guest trips over a loose tile in your kitchen, breaks their arm, and sues you for medical costs. Liability insurance will pay for their treatment and cover legal expenses. Without it, you would pay thousands from your pocket. 

Yes. If your home is damaged and unsafe to live in, insurance often pays for hotel stays, rental apartments, or meals until repairs are finished. This is called additional living expenses coverage. 

You can:

• Go directly to an insurance company,
• Use a broker who compares multiple insurers,
• Or buy online from comparison platforms. 

Yes and no. Sudden accidents like a burst pipe or leaking washing machine are usually covered. But slow leaks, poor maintenance, or flooding from heavy rain are often excluded. For flood coverage, you need a separate policy. 

Replacement Cost: pays for brand-new items, regardless of age.

Actual Cash Value: pays only what the item is worth today after depreciation.

Example: A 5-year-old TV that cost $1,000 might only be worth $200 in cash value, but replacement cost would pay for a brand-new $1,000 TV. 

Standard policies don’t cover business equipment or client liability. If you run a business from home, you need extra business insurance or a rider added to your home policy. 

Yes, usually. Insurers see you as higher risk once you file a claim. Sometimes the increase is small, sometimes significant, depending on the type of claim and your history.  

Generally, it doesn’t cover your pet damaging your own property. But it can cover liability if your pet bites someone or causes injury to a visitor. 

No. Policies are tied to the homeowner. When you sell, the new owner must buy their own policy. 

At least once a year. Also review it after major life changes: renovations, buying expensive electronics, or adding valuable jewelry. If your home’s value increases, update your coverage. 

Yes, but only up to a certain limit. Expensive electronics (like high-end computers or home theater systems) may require scheduled coverage for full protection. 

Only if they are listed in your policy. Otherwise, they need their own renters insurance. Many people make this mistake and assume coverage extends automatically — it does not. 

Some modern policies include it, but many don’t. Identity theft protection can pay for legal fees, lost income, and recovery costs if your identity is stolen. It’s usually added as an optional rider. 

Business insurance is a financial safety net for companies. It protects against unexpected events such as accidents, lawsuits, property damage, theft, cyberattacks, or employee injuries.

When something goes wrong, the insurer pays part or all of the costs — so the business doesn’t collapse financially. For example, if a fire destroys your store, business insurance can pay for rebuilding and replacing inventory. Without it, you’d pay everything out of pocket. 

Running a business always carries risks. Even small incidents — like a customer slipping on a wet floor — can result in expensive lawsuits. One accident, fire, or theft could close your business permanently if you don’t have insurance.

Insurance allows you to continue operating even after a loss. It protects your income, assets, and reputation. That’s why investors, landlords, and even clients often require proof of insurance before working with you. 

There are many types, but the most common include:

• General Liability Insurance – protects against accidents, injuries, or property damage caused by your business.
• Property Insurance – covers your office, warehouse, equipment, and stock.
• Business Interruption Insurance – replaces lost income if you are forced to close temporarily after a fire, flood, or disaster.
• Workers’ Compensation – pays for medical care and lost wages if employees are injured at work. 

It depends on your country and industry. In many places:

Workers’ compensation is mandatory if you employ staff.

Some professional industries (law, healthcare, engineering) require liability coverage by regulation.

Even if it’s not legally required, having insurance is strongly recommended because most landlords, partners, and banks demand it. 

There’s no single answer because cost depends on:

• The size of your business.
• Industry risk (construction vs. consulting).
• Location (city center vs. rural).
• Number of employees.
• Coverage amount.

  For example, a small online consultancy may pay only a few hundred dollars per year, while a construction company with 20 employees might pay thousands. 

It depends on your risks.

• A retail store needs property, theft, and liability insurance.
• A consultant or lawyer needs professional liability.
• A manufacturer needs product liability and workers’ comp. 

Liability insurance protects your business if someone sues you. For example:

• A customer slips on your floor and breaks a leg.
• You damage a client’s property while providing services.
• Someone claims your business was negligent.

  The insurer pays legal costs, settlements, and judgments, which can otherwise bankrupt a small business. 

Yes — if you have Workers’ Compensation Insurance. This coverage pays for hospital care, rehabilitation, and lost wages if an employee gets hurt at work. In many countries, it’s mandatory. Without it, the employer must pay directly, which can be very expensive. 

If a fire, flood, or disaster forces you to close temporarily, this coverage replaces lost income and helps pay ongoing expenses (rent, salaries, utilities). For example, if a restaurant burns down, business interruption insurance pays the income the restaurant would have earned while being rebuilt. 

It depends on the policy. Standard property insurance covers fire and storms. However, earthquakes, floods, and hurricanes often require extra coverage. Many business owners mistakenly think they are automatically included, but they are not. Always read your policy carefully. 

Yes. If you work from home, your regular home insurance often does not cover business equipment or client liability. For example, if a client visits and is injured, your home policy may not protect you. You need special home business insurance or a business policy. 

You carry all the risk yourself. If your shop burns down, you must pay to rebuild. If a customer sues you, you pay all legal costs. One major incident can wipe out years of hard work and force you to close permanently. 

Yes. Most insurers offer flexible packages. For example, you can combine property, liability, cyber, and workers’ compensation into one policy. This way, you pay only for the protection you need. 

Contact insurers directly.

Use a broker who compares multiple options.

Buy online through comparison platforms. 

No. Small businesses, freelancers, and even one-person startups need protection. A single lawsuit can bankrupt a small company. Even if you’re a freelancer working from home, liability insurance protects you if a client sues over mistakes. 

Not always. Standard policies usually exclude cyber risks. To be protected against hacking, stolen data, ransomware, or system shutdowns, you need Cyber Liability Insurance. With global cybercrime increasing, this is now one of the fastest-growing insurance needs. 

It protects service providers like lawyers, consultants, engineers, and designers if a client claims you made a mistake or gave bad advice. For example, if an engineer miscalculates and a project fails, this insurance covers legal costs and damages. 

Yes, if you have General Liability Insurance. It covers legal defense, settlements, and judgments if customers sue for injury, damage, or negligence. Without it, legal fees alone could bankrupt a business. 

In many countries, yes. Insurance premiums are considered business expenses and can reduce your taxable income. Always check with a local tax advisor because rules vary. 

Standard insurance usually doesn’t. To cover recalls, you need Product Liability Insurance. This protects you if a product you sell or manufacture harms a customer, causes illness, or needs to be pulled from the market. 

Normally, workers’ compensation only covers employees, not contractors. Freelancers usually need their own insurance. However, some policies let you extend coverage to contractors if you negotiate it with the insurer. 

General liability: covers accidents and physical injuries at your workplace (like a customer slipping).

Professional liability: covers mistakes or negligence in your services or advice.

Many businesses need both. 

Most policies exclude pandemics. COVID-19 showed this gap clearly, with many businesses unable to claim for closures. Some insurers now offer special pandemic coverage, but it costs extra.  

At least once a year, and every time your business changes. If you hire more staff, expand locations, or add new services, your risk changes — and your coverage must change too. 

No. Business insurance is tied to the current owner. When you sell, the policy ends. The new owner must set up their own coverage. 

Travel insurance is a financial protection plan for travelers. It covers unexpected problems that may occur before or during a trip. These can include medical emergencies, trip cancellations, lost baggage, flight delays, or emergency evacuation.

For example: if you break a leg abroad, your insurer can cover hospital bills that could cost thousands of dollars. Or, if your trip is canceled due to illness, you can recover non-refundable expenses. 

Because traveling always carries uncertainty. Flights get delayed, bags get lost, and people get sick. Without insurance, you could lose large amounts of money or face huge medical bills in a foreign country.

One real-life example: a traveler in Thailand without insurance needed emergency surgery and faced a $20,000 bill. With insurance, most of this would have been covered. 

Most standard policies cover:

• Medical emergencies and hospital stays abroad.
• Trip cancellation or interruption (if you can’t travel or must return early).
• Lost, stolen, or delayed baggage.
• Flight delays or missed connections.
• Emergency evacuation (medical transport to the nearest hospital or back home). 

In some countries, yes. For example, Schengen visas require proof of insurance with at least €30,000 medical coverage. Other countries, like Cuba or Turkey, also require it for entry.

Even when not mandatory, it’s highly recommended because accidents abroad can cost much more than at home. 

Usually between 4–10% of your total trip cost. Factors include:

• Age (older travelers pay more).
• Destination (some regions are riskier).
• Duration of trip.
• Coverage level.

  Example: a $2,000 trip might require $80–$200 in insurance — a small cost compared to losing the whole trip. 

The best time is immediately after booking your trip. This way, you’re protected if something happens before departure (like illness or job loss). Buying late can limit your coverage — some benefits (like trip cancellation) only apply if purchased early. 

Some policies do, but most require:

• You declare the condition when buying.
• You may pay more or need a special add-on.
• Some may have a waiting period before coverage begins. 

Usually no — most companies require purchase before departure. Some insurers allow “late purchase” but only cover future events, not anything that already happened. 

Many modern policies now include COVID-19 coverage: hospital treatment abroad, quarantine expenses, or cancellation due to illness. However, not all policies do — always read carefully, because pandemics were often excluded in older contracts. 

If you have trip cancellation coverage, you can claim for non-refundable expenses like flights, tours, or hotel bookings. Airlines may also owe compensation depending on the reason. Insurance provides extra protection when airlines refuse responsibility. 

Single-trip insurance: covers one journey from start to finish. Good for occasional travelers.

Annual (multi-trip) insurance: covers unlimited trips for 12 months. Better for frequent travelers because it’s cheaper and more convenient 

Contact your insurer immediately.

Collect evidence (receipts, medical reports, police reports if theft).

Fill out the claim form (online/email).

Wait for review and payment. 

Yes. Insurers help with emergency replacement costs (like embassy fees) and sometimes pay for extra travel to replace documents. However, they don’t cover fines if you were careless with your passport. 

Many insurers give a “free look period” (around 14 days) where you can cancel for a full refund, as long as the trip hasn’t started. After that, refunds may only be given if no coverage has started. 

Yes. Even on a 2-day trip, baggage can get lost, or you may fall sick. Hospital bills abroad can cost thousands even for small issues. The cost of insurance is very small compared to the risks. 

Basic policies usually exclude “risky activities” like skiing, scuba diving, or bungee jumping. If you plan these, you must add adventure sports coverage. Otherwise, injuries from these activities won’t be covered. 

Trip cancellation: If you can’t start your trip (illness, family emergency, visa denial).

Trip interruption: If you must end your trip early (death in family, sudden illness).

Both protect your prepaid costs, but at different stages of travel. 

Yes, many companies let you extend online before your policy ends. If you wait until after it expires, you may need to buy a new policy, and coverage gaps could appear. 

Most policies exclude normal pregnancy and routine check-ups. But complications or emergencies (like early labor) may be covered if unexpected. Always check limits and time restrictions (e.g., many won’t cover travel beyond 26–28 weeks). 

This pays for transport to the nearest qualified hospital or back home if you are seriously ill or injured. Without insurance, this can cost $20,000–$100,000 or more, depending on distance and transport (ambulance, airlift). 

Both:

• Delay: If your bag is missing for 6–24 hours, you can buy essentials and get reimbursed.
• Loss: If your bag never returns, you’re reimbursed up to policy limits. 

It depends on the insurer:

• Some cover up to 30 days, others 90 days, and some up to 12 months.
• Annual policies reset each trip. 

Some policies exclude it. Others provide coverage if your government issues an official “Do Not Travel” advisory. Coverage may include trip cancellation or emergency evacuation. 

Yes, but you may need a business travel policy. It can cover lost work equipment (laptops), canceled meetings, and emergency replacements. Standard leisure policies may not cover business equipment. 

Yes, if they are listed on the policy. Family or group plans are often cheaper than buying separately. Children are usually covered at reduced rates or sometimes free under family plans .