Hi, Guys! Hope you all are good and we are going to even make you feel better, today’s topic is not only eye catching and attractive but as well as supportive for financial dealings.I am sure that most of you have guessed that I am going to discuss about “INSURANCE”.So let’s start with the very basic question – ‘ What is insurance ?’.
What is insurance – a general intro
Insurance is a contract, represented by the policy, in which a person makes regular payments to insurance company and company promises to pay money in case of that the insured person gets injured or dies.Insurance is not limited to only human beings but it enclosed materialistic things as well such as house, car etc. Then, the company will be responsible for paying the amount that equals the loss that one has suffered.
We can insure health, life, business, property, auto, and if there is a loss in these things insurance company will provide payment that will satisfy the loss. Auto Insurance provides security to the policyholder loss in the event of an incident involving a vehicle that they own such as traffic collision, theft of vehicle etc.
Health Insurance policies are those that cover the cost of treatment such as medical treatment ie, dental treatment which protects policyholders from their dental mending costs.
Disability Insurance supports the policyholder in case of disability in which person can’t work due to his/her disability which may be due to accident or illness. In developed countries, the government provides the health insurance to their citizens.
Life insurance provides monetary benefits to the decedent’s family or other designated beneficiary for the policy. The company will pay for funeral and other final expenses of insured person.
Property insurance protects the property from risks such as theft, fire, weather damages. This can include various types of insurance such as flood insurance, fire insurance, home insurance etc.
Business insurance provides protection in business loss. This feature helps the businessmen to take a risk and work more confidently which can involve a social benefit.
More about insurance
Before choosing an insurance policy one should be familiar how the policy works and what are the components of the insurance. There are two most components of the insurance policies are premium and deductible. The firm familiar with these terms will help you to choose a policy which is best for you. The premium of the policy is simply its price and expressed as a monthly cost. The insurance company determines the premium on based of you and your business risk profile. Different policy insurer can charge different premiums for the same policies.
Another component is deductible. When the policyholder claims and he/she is required to meet minimum out of pocket expenses or deductible before the insurance company pays to him/her for losses.
For different countries, there are different rates of insurance you can get the best rate by discussing the two components of insurance policies ie one is premium and the other is deductible.