Insurance FAQs When should I buy insurance? The earlier you purchase life insurance, the better the timing will be. You will be eligible for lesser rates if you are younger. Additionally, as you become older, you can develop health problems that increase the cost of your insurance or prevent you from being eligible for coverage. Why do insurance policies have deductibles? Insurers use deductibles to ensure that policyholders are invested in the outcome and will pay their fair share of any claims. Deductibles lessen the financial burden a catastrophic loss or an unexpected buildup of smaller losses places on an insurer. What are the common types of insurance? There are many different types of insurance, but some of the most common include health, life, auto, homeowner's, and travel insurance. What is the insurance coverage? Insurance coverage refers to the amount of risk or liability covered by insurance services for an individual or organization. What is the main benefit of insurance? The most obvious and significant benefit of insurance is the payment of losses. A contract, known as an insurance policy, is used to compensate people and organizations for losses covered by the policy. About the Author True Tamplin, BSc, CEPF® Facebook Linkedin Instagram Twitter Youtube True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists. True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics. To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.