History of Insurance, Insurance, Insurance FAQ, life insurance, Types of Insurance

The History of Insurance

History of InsuranceThe roots of insurance go way back to Babylonia, where traders were encouraged to assume the risks of the caravan trade with funds to be paid only after the goods had arrived safely.  The Phoenicians and the Greeks soon hopped onto that bandwagon and utilized a similar system for their seaborne commerce.  The Romans were innovative as well and used “burial clubs” as a form of life insurance, by providing funeral expenses for members and later making payments to their survivors.

As towns grew and trade spurted up around Europe, many medieval guilds undertook measures to protect their members from loss by fire and shipwreck, or provide ransom from captivity by pirates, and to provide decent burial and support in times of sickness and poverty.  The earliest known insurance contract was in Genoa, Italy in 1347 and soon marine insurance became practically universal among the maritime nations of Europe.
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Insurance, Insurance Deductible, Insurance FAQ, Types of Insurance

How Does an Insurance Deductible Work?

Insurance DeductibleThe beginning of the New Year is not just a time to state your New Year’s resolutions (most of which will probably be broken with a few weeks), but, it is a time to begin your new yearly healthcare insurance deductible.  Your healthcare deductible, as you know, is the amount you owe for covered healthcare services before your health insurance plan kicks in and begins to pay. As an example, if your healthcare insurance deductible is $1,000.00, your plan won’t pay for anything until you’ve paid $1,000.00 out of your own pocket for covered services.  There are exceptions to the rule in that some plans pay for certain health care services before you have met your yearly deductible.  For those blessed with good health, they may never reach their yearly deductible, especially if the deductible is high, where others may have racked up doctor visits, laboratory or prescription charges and will have met their deductible early on in the calendar year.

Deductibles for health insurance are much different than that for car insurance and home insurance… sure, you must inevitably pay out of your own pocket until your deductible is met, but, the biggest difference is that the deductible does not begin anew each calendar year.  Deductibles for property damage works differently than a typical health insurance policy with its single annual deductible for the policy.  With an auto or homeowners insurance policy, the deductible applies each time you file a claim. The one major exception to this is in Florida, where hurricane deductibles specifically are applied per season rather than for each storm.

Since, most people have a basic understanding how health insurance deductibles work, let’s look at this topic as it applies specifically to car and home insurance.
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