The Charles Schwab Corp. is a financial services company founded in April 1971 that offers online brokerage, investing, and advisory and banking services. Some 10 million self-directed traders and investors use Schwab’s web-based, pro-level, and mobile trading platforms to research, buy, and sell stocks, ETFs, options, mutual funds, bonds, and other securities, making it one of the largest brokerage firms in the U.S. For those wanting a little help with their investment decisions, Schwab offers advisory services, including personal planning, automated investing, and portfolio management.
A policy’s premium is simply its price, typically expressed as a monthly cost. The premium is determined by the insurance company based on your, or your business’, risk profile. For example, if you own several expensive automobiles and have a history of reckless driving, you pay more for an auto policy than someone with a single mid-range sedan and a perfect record. However, different insurers may charge different premiums for similar policies, so finding the price that is right for you requires some legwork.
The second important policy component is the deductible. Whenever you make a claim, you are required to meet a minimum out-of-pocket expense, or deductible, before the insurance company pays for your losses. Deductibles can apply per-policy or per-claim depending on the insurer and the type of policy.
Policies with very high deductibles are typically cheaper because the high out-of-pocket cost means insureds are less likely to make small claims. When it comes to health insurance, for example, people who have chronic health issues or need regular medical attention should look for policies with lower deductibles. Though the annual premium is higher than a comparable policy with a higher deductible, cheaper access to medical care throughout the year may be worth the trade-off.
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