Insurance

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An individual insurance contract is known as an insurance policy, policies have periodic payments, usually monthly, known as insurance premiums. Instead of periodic payments a lump sum insurance premium might be needed.
There are lots of different types of insurance policies, designed to cover a myriad of possibilities, such as,

Home Insurance - Buildings and Contents
Motor Insurance - iInsure everything from you car to a quad bike
Life Insurance - make sure a loved one is not left p[enniless if you die
Health Insurance - sometimes when you need more than the NHS can offer
Travel Insurance - useful if going on a holiday in case of the unexpected
Pet Insurance - your pet is as important to you than most things you insure
Private Medical Insurance - sometimes when you need more than the NHS can offer
Mortgage Payment Protection Insurance - cover your mortgage repayments
Critical Illness Insurance - receive a payment if you get a critical illness
Commercial Van Insurance - work vehicles need insuring

Before accepting any insurance ensure it does what you want and be aware of any exceptions, their terms and the claims procedure.

Insurance is protective "what if" cover, for our property, possessions, life, health, and pets against any harm, damage and theft. No one wants harm to come to themselves their family or possessions, but it can be a real possibility, so insurance policies are taken out to lessen the financial hardships that may arise.
By taking out insurance you are basically shifting a risk from a person, business, or organization to an insurance company. The insurance company is committed and responsible for covered losses as identified in the contract.

Points to be aware of when taking out any type of Insurance

Know exactly what risks and which items and events you are covered for.
Understand what is not included: for example if the right sort of security was not taken, possessions not kept under lock and key then your insurance company may not pay out.
Be aware of any excess you will have to pay. The excess is an amount of money that you will have to find yourself in the event of making a claim on your insurance. If you agree to pay a larger excess it usually follows that you will pay a lower premium.
Premiums can vary and such things as where you live, your job, the type of car you drive, the amount you wish to protect etc can all affect the premium you will pay for insurance.
Is there a saving to be made if you pay by direct debit, if you pay yearly instead of monthly could you save money?
Some premiums are reviewable, this means that your premiums could increase or decrease after each review. Make sure you know how regular your policy will be reviewed.
Know exactly how much you will be paying and whether you will be paying monthly or yearly. Is it cheaper to pay a lump sum yearly?
Understand how flexible your policy going to be, would existing health problems affect your policy adversely. Would you lose money if you decided to change to another insurer? What happens if you miss a payment? If you cancel your policy would you get any of your premiums back at all?
Always make sure that your policy is good value for you and that it meets your own needs. When your policy is due for renewal this is a good time to review your policy. If your needs have changed greatly then review your Insurance Policy to make sure you are covered.