Why you need insurance is for the evenhanded shift of the risk of a loss from one unit to another, in swap for a finest, in addition to being thought of as a guaranteed small loss to avoid a big and possibly overwhelming loss. Although the main objective of insurance is to get you or your business insured against possible loss, insurance can either be business or personal. If you have accident in future, insurance will protect you against any financial loss you suffer and it is a small loss that will put a stop to possibly overwhelming loss.
Insurance is a contract between the insured who is the policyholder or the person who is buying the insurance and the insurer or the insurance company.
There are auto insurance aka car insurance, vehicle insurance or motor insurance. This type of insurance is bought for trucks, cars, motorcycles and other types of vehicles. The provision of protection against losses incurred due to traffic accidents is the most important use of auto insurance upon the payment of premium by the insured.
Auto insurance will offer property coverage and it is suitable if your car is stolen or damaged, medical coverage that covers bodily injury or property damage done by you to other people as well as liability coverage that pays for the lost of wages, cost of treating injuries and funeral costs. Auto insurance is presumed to be the largest insurance market in the entire globe.
Another type of insurance is the home insurance that insures or offer compensation for damage of a home as a result of disasters. Home insurance covers losses happening to your home, loss of home use, loss of home contents and loss of other personal effects of the homeowner. However, you need to purchase earthquakes insurance, war insurance or flood insurance in addition to home insurance in some geographical areas.
Health insurance aka health care coverage, health coverage or health benefits is another kind of insurance and it pays for medical costs. Health insurance policy can be bought on group basis by companies to cover their employees or even by every individual.
Finally, life insurance or life assurance is also available. This is the type of insurance where the Life Assurance Company or the insurer offers to pay a lump sum of money on the happening of the insured illness, death, terminal illness, critical illness or any other event. Premium is paid by the insured on regular basis as agreed with the insurer.
The life insurance policy can be for a specified period of time for a precise premium (temporary life insurance) or the type of policy that will be in force until it matures or pays out (permanent), unless there is default of non payment of premium as when due by the policyholder.
Life insurance is a contract between the insurer and the insured whereby a benefit is paid to the designated beneficiaries in a situation where an insured event covered by the policy happens. Such events to be covered may include illness, investment as well as protection policies.
When the insured died or ill, acceptable proof like death certificate, completed, signed and notarized claim form are required by the insurance company, before any claim can be paid. However, such claim can be further investigated by the insurance company if the death of the insured looks suspicious. Nevertheless, proceeds from the policy may be paid as an annuity or as a lump sum.
