Insurance is a common word. It often used in a conversation and all most 80% people don’t know what is the proper meaning of insurance and how to get one.
So a insurance is an arrangement by which a company or the state undertakes to provide a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a specified premium.
In another sense Insurance is a contract, represented by a policy, in which an individual or entity receives financial
protection or reimbursement against losses from an insurance company.It is protection against something going wrong. When you pay premiums in exchange for a policy that pays out when you crash your car in a car accident, this is an example of an auto insurance policy.
Insurance policies are used to hedge against the risk of financial losses, both big and small, that may result from damage to the insured or her property, or from liability for damage or injury caused to a third party. Now we need to know about the different kind of insurance policy.
So there are 4 kind of insurance policy that everybody should have.
- Life Insurance
- health insurance
- Long-Term Disability Coverage
- Auto insurance
#Life insurance: Life insurance is a contract between an insurance policy holder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money upon the death of an insured person. Depending on the contract, other events such as terminal illness or critical illness can also trigger payment.
Life policies are legal contracts and the terms of each contract describe the limitations of the insured events. Often, specific exclusions written into the contract limit the liability of the insurer; common examples include claims relating to suicide, fraud, war, riot, and civil commotion.
Difficulties may arise where an event is not clearly defined, for example: the insured knowingly incurred a risk by consenting to an experimental medical procedure or by taking medication resulting in injury or death.
#health insurance: Health insurance is an agreement you make with an insurer to have them pay for some or all of your medical expenses in exchange for a premium. Having health insurance can keep you from incurring medical bills you can’t afford to pay out of pocket.
Health insurance can help to offset the costs of minor medical issues or major ones, including surgeries or treatment for life-threatening illnesses. But if you don’t have health insurance, you won’t be penalized for it under the terms of the Affordable Care Act.
#Long-term disability insurance: It is coverage intended to protect your income if you are unable to work due to illness or injury. While short-term disability insurance usually lasts a maximum of two years, long-term coverage can often last five or 10 years, if not all the way through to your retirement.
Long-term disability is a good investment for most people because it dramatically reduces the risk of financial setbacks if you become disabled. Without a policy, that period without income could make it hard to afford everyday necessities, support your family, or keep up with savings and retirement goals.
How Long is the Waiting Period? Although long-term disability typically starts when you meet the definition of disability, the insurance company does not immediately begin paying benefits once that definition is met. Usually, you must remain disabled for at least 90 to 180 days in order to start receiving benefits.
#Auto insurance: It is a insurance for vehicles. Auto insurance is a contract between you and the insurance company that protects you against financial loss in the event of an accident or theft. In exchange for your paying a premium, the insurance company agrees to pay your losses as outlined in your policy.
Vehicle insurance is insurance for cars, trucks, motorcycles, and other road vehicles. Its primary use is to provide financial protection against physical damage or bodily injury resulting from traffic collisions and against liability that could also arise from incidents in a vehicle.
Having car insurance is required by law in most states. If you are at fault in a car accident, the auto liability coverage required on your car insurance policy helps pay for covered losses, such as the other party’s medical bills and damage to their vehicle or other property that results from the accident.
Now you’re probably thinking why do we need a insurance? Insurance plans are beneficial to anyone looking to protect their family, assets/property and themselves from financial risk/losses: Insurance plans will help you pay for medical emergencies, hospitalization, contraction of any illnesses and treatment, and medical care required in the future.
Here are some benefits of having an insurance.
- Life Risk Cover.
- Death Benefits.
- Return on Investment.
- Tax Benefits.
- Loan Options.
- Life Stage Planning.
- Assured Income Benefits.
Now there is a question that we are all asking. Which company should we choose. There are meny insurance company in the world. Here are some of them.
- American International Group
- Prudential Financial inc
- Berkshire Hathaway Inc
- MetLife inc
- Zurich Insurance Group Ltd
And many more. So now it is your choice and duty to your loved ones to get a insurance.
People often make a mistake choosing the right insurance policy for them. So we need to be careful about it. Everyone should read the police and terms carefully while choosing a insurance. Or else you could get into a big trouble. We should consider a good consulted before taking a insurance.