Insurance as it is in the 21st century
- Author Armando Hernandez
- Published January 7, 2015
- Word count 477
When people are faced with the unexpected such as accidents and its like, the best security at hand to mitigate such situation is being insured.
Hence insurance can be defined as the simplest form of risk management in which the insured transfers the cost of unforeseen loss to another individual in exchange for monetary compensation known as the premium.
Insurance enables people, businesses and other bodies protect themselves against general forms of hardship associated with the likes of finances, health, life, etc. at a reasonably affordable price.
And such insurance coverage could be applied as below:
• Shielding family after one's death from loss of income
• Debt repayment after death
• Covering conditional liabilities
• Shielding against the death of a key employee or person in your company
• Shielding your business from loss of income
• Shielding yourself against unforeseeable health issues
• Shielding your home against theft, fire, flood and other hazards
• Shielding yourself against lawsuits
• Shielding yourself in the event of disability
• Shielding your car against theft or losses incurred because of accidents
• Etc.
The basic way Insurance works
It works by pooling various risk factors with people interested in insuring themselves paying premiums into the insurance bucket of a company, simply in their account held by the insurance firm.
Simple Understanding of Insurance Contract
The insurance bond is a legal document that spells out the coverage and limitations of the insurance rule. It is critical that you read the contract agreement properly and ask questions on areas not clear.
You don't want to pay for the insurance and then find out that what you thought was enclosed isn't incorporated.
Risks
Life is full of risks.
Some are preventable or can at least be reduced, and while some are avoidable and some are completely unforeseeable.
There are two main types of insurance, namely life insurance and general insurance which covers different aspects in your life and breaking them further we apply this in the following below.
o Motor insurance
o Fire insurance
o Householders insurance
o Personal accident insurance
o Medical and health insurance
Life insurance is an insurance coverage that pays out a certain amount of money to the insured or their specified beneficiaries upon a certain event such as death of the individual who is insured.
This form of premium payments is done either monthly, quarterly or annually.
Life insurance basically covers:
o Premature death
o Income during retirement
o Illness
And also is mainly attributed to:
o Whole life
o Endowment
o Investment-linked
o Life annuity plan
o Medical and health
General insurance is basically an insurance policy that protects you against losses and damages other than those covered by life insurance.
But how do you know whether your hard-earned money is going on the policies you require the most? The answer is simply to do your research and ask questions that relate to your insurance needs.
The risks that are covered by general insurance are for example property loss, liabilities from damage, accidental death or injury and its likes.
It’s doubtful that you’ll need every insurance policy on the market, even if you could pay for them all.
Article source: https://articlebiz.comRate article
Article comments
There are no posted comments.
Related articles
- Your Local Lighting Experts: Fehmi Lights Serving the Greater Toronto Area
- Moving Freely Again: Understanding and Managing Joint Pain Naturally.
- Bladder Health Made Simple: Natural Ways to Support Urinary Tract Function.
- Dealing with Metatarsalgia in the Foot
- Benefits of Purchasing a New Construction Home In Spring Hill or Columbia, Tennessee
- Creating a Calm Home Workspace with Minimal Decor
- Bladder Health and Urinary Tract Function: A Complete Guide to Care and Prevention.
- Smart Weight Management: Proven Strategies for Sustainable Health and Lasting Results.
- Creating a Calm Home Office: Your Guide to Peaceful Productivity
- Treating Sesamoiditis in the Foot
- African Mango: A Natural Weight Loss Solution You Can Trust.
- “The Man of Steel’s Tragic Fall: The Life and Times of George Reeves.”
- “The Quiet Comeback: Brendan Fraser’s Journey from Stardom to Shadows and Back Again.”
- Statement Wall Entryway with Carved Wall Panels: A Celebration of Old World Artistry
- Vintage Hand-Carved Floral Doors: The Soulful Charm of Old World Design
- Title: Why Dieting Alone Fails: The Missing Piece in Effective Weight Management
- The Revival of Patterned Carpet in Modern Interiors
- When Is the Right Time to Consider Getting a Stairlift?
- The "Too Many Toes" Sign in a Gait Analysis
- The Hidden Obstacles to Weight Loss—And How Nature Provides the Solution
- Title: Unlocking Natural Weight Loss: How African Mango Supports Metabolism and Fat Burning
- “Ashes of the Heart.”
- Complete Guide to Choosing the Perfect Exterior Paint
- Why Choose Automatic Driving Lessons in Glasgow with Autogear Driving School?
- The Use of Circulation Boosters
- Hair Loss Solutions in 2025: Why Provillus Is Leading the Pack
- Natural Ingredients, Real Results: Inside Provillus for Men Spray
- “Light, Time, and Suffering: The Cinematic Ordeal of The Revenant.”
- From Thinning to Thriving: A Man’s Guide to Beating Baldness with Provillus
- The Science of Hair Regrowth: Why Provillus Is a Breakthrough for Men