The journey through life is unpredictable and almost anything can happen to you. Unfortunately, you can’t avoid an accident or illness, but you can prepare for them. One way to do this is through various types of insurance. These won’t help you recover, but they will take some of the pressure off your shoulders with financial security. Read more about the different types of insurance in this article.
Insurance is a service that serves to protect against various risks and negative situations. The basic principle of insurance is that you regularly pay a certain amount of money (the premium) to an insurance company, which in return undertakes to compensate you financially if an adverse event (an insured event) occurs. A key element of this system is the sharing of risk among a large number of insured persons, which allows the insurer to spread the cost of claims while making a profit.
Insurance most often covers people or property. For both, in general, higher coverage means higher premiums because the insurer must cover larger potential liabilities. For personal insurance, factors such as age, gender, health, occupation and lifestyle play a major role.
In the case of property (most commonly real estate), the condition of the property plays a major role, with newer and more expensive property requiring higher premiums. The geographical location where the insured property is located also plays a role. For example, you will pay more for property insurance in flood-prone areas than in areas where flooding problems are not prevalent.
Tip: There are different types of property insurance to suit specific needs and property types. Which policy to choose and how does the insurance process work? Read our article to find out.
The price is also greatly influenced by the level of your deductible, which is the amount of money you have to pay out of your own pocket before the insurance company starts paying claims. Naturally, higher deductibles mean lower premiums because you bear more of the risk.
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Nowadays you can insure almost everything. But in this article we will focus on personal insurance. The most common voluntary types of personal insurance are: life insurance, accident insurance, credit insurance, liability insurance and travel insurance. Let’s take a closer look at these types:
Life insurance provides financial protection in the event of the death of the insured. The main purpose of life insurance is therefore to provide financial security for the survivors (e.g. family) after the death of the insured. Life insurance is regulated by the Civil Code. If you are deciding whether this insurance is worthwhile, then this information may help you – you can write off the amount you pay for life insurance against your taxes up to CZK 24 000 and save up to CZK 3 600 per year.
Accident insurance provides financial protection if you suffer an accident. Accident insurance is designed to cover the costs associated with the treatment of injuries, loss of income due to incapacity for work, expenses and losses associated with hospitalisation, permanent disability or death due to an accident. The aim of accident insurance is therefore to mitigate the financial impact that can arise from an unexpected accident.
An important piece of information is that the insurance company has the right to reduce your benefit by up to half if the injury was caused by the consumption of alcohol or another addictive substance.
If you want to terminate your contract, it is a good idea to use a pre-made accident insurance termination template to make the process easier. A properly completed accident insurance termination form should include your identifying information, contract number and reason for termination. Before submitting the document, we recommend that you check that the accident insurance termination notice complies with the terms of your specific contract.
Tip: What does an accident at work mean? What are you entitled to, what is pain and suffering and how is it determined? Is the procedure different if you caused the injury in part by your own breach of duty? And why is your employer allowed to give you notice in connection with a work-related injury? We answer all this in our article.
If you can’t work because of an accident or illness, incapacity insurance can help cover the loss of income. Repayment capacity insurance is insurance that protects you from being unable to pay your debts in the event of unexpected events such as job loss, long-term disability, accident or death. Incapacity insurance ensures financial stability in the event of long-term illness or injury.
Some insurers allow you to combine incapacity insurance with credit insurance, such as mortgages or consumer loans. Many people take out disability insurance to supplement their accident insurance. For all scenarios, there is usually a grace period. For example, in the case of long-term illness, it is usually 30 days. This means that for the first 30 days, the insurance company will not pay your instalments.
Your benefit may be reduced in certain cases. But here it depends on the specific conditions of the particular insurance company. However, you will most often see a reduction in premiums in the case of claims caused by substance abuse, your criminal activity, adrenaline sports, etc. Properly set up disability insurance will give you peace of mind even in unpredictable life situations.
Tip: Did your insurance company reduce your benefit unfairly? Don’t let it bother you! Contact us. We will carefully analyze the whole situation and will defend your rights.
Liability insurance covers damage you cause to third parties. This insurance is therefore designed to protect you against the financial costs associated with compensating you for damage you have caused to someone else, either to property or to your health. There are several types:
Business liability insurance protects a business from financial losses caused by damages to third parties. Some professions, such as doctors or lawyers, have business liability insurance that is legally required. Business liability insurance helps cover the cost of litigation or compensation for damages caused to clients. The amount of the premium for business liability insurance depends on the line of business and the level of risk.
Tip: Read about the principles of compensation. Find out what you are entitled to in such a situation and how to claim it.
Travel insurance provides financial protection and travel assistance in case of unexpected events such as health problems, accidents, loss of luggage, cancellation of flights or accommodation, etc. The total scope depends on the specific insurance policy.
Tip: Business travel usually requires special travel insurance. Your employer must arrange and pay for it for you, and it is legally obligatory. Otherwise, the employer is obliged to pay for any expenses incurred abroad as a result of illness or injury.
Canceling your life insurance is a crucial decision that you should always think carefully about. Before terminating your life insurance, it is advisable to consider whether you will lack financial protection in the event of unexpected events. If you decide to cancel your life insurance, you may lose some of the tax benefits you previously enjoyed. And if you have a life insurance savings component, terminating your life insurance may mean losing some of your savings.
You can terminate an insurance policy without giving any reason in writing. This notice must be sent upon certain events or within certain time limits, specifically:
Tip: Are you planning to cancel your disability, life, accident or liability insurance? Don’t rely on the templates available on the internet and contact us instead. We can handle everything quickly, efficiently and online.
There is also the option of cancelling the contract, but only if the insurer has given you incorrect or incomplete information about your insurance. Once you find this out, the two-month notice period will start. In some cases, you can also mutually agree with the insurer to terminate the policy, but this is entirely up to the goodwill of the insurer.
The last option, which we would definitely not recommend, is to stop paying your premiums. In this case, your insurance will lapse after a certain period of time, but you will also be liable to pay the missing amount and possibly a penalty. Doing so will worsen your reputation for future insurance, plus you can quickly run up debt and get into debt collection and foreclosure problems.
Do you want to change insurance companies because of unsatisfactory conditions? Or have you discovered an offer that is much better? Read on to find out when you can terminate your insurance policy.
Insurance is a key tool to protect against unforeseen risks. Different types of insurance offer specific services and coverages that can be tailored to your individual needs.When choosing insurance, it is important to consider the factors affecting the price and scope of the policy, including deductibles and personal or property parameters. In addition, it’s important to know your policy options and termination rules to avoid unwanted complications.
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Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 10 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.
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