Insurance - All The Basics


What is insurance?
Insurance is a means of providing protection against financial loss in a great variety of situations. It is a contract in which one party agrees to pay for another party's financial loss resulting from a specified event.
Insurance works on the principal of sharing losses. If you wish to be insured, against any type of loss, agree to make regular payments, called premiums, to an insurance company. In return, the company gives you a contract, the insurance policy. The company promises to pay a certain sum of money for the type of loss stated in the policy.

History
Insurance is thousands of years old. The Code of Hammurabi, a collection of Babylonian laws of 1700BC, is believed to be the first form of credit insurance. A borrower did not have to repay a loan if personal misfortune made it impossible to do so. Insurance as we know it today can be traced to the Great Fire of London in 1666, which devoured 13,200 houses. In the aftermath of this disaster, Nicholas Barbon opened an office to insure buildings.

Types of Insurance:
Insurance generally covers situations involving pure risk - that is, situations in which only losses can occur. Such situations include fire, floods and accidents. People also buy insurance to cover unusual types of financial losses like, a dancer might insure her legs against injury. There are mainly three types of insurance policies sold:
1. Life Insurance
A life insurance policy provides that the insurance company will pay a certain amount when the person dies. This may be paid in a lump sum or in installments to the beneficiary [people named by the policyholder to receive the death benefit]. Some types of life insurance policies also enable policyholders to save money. Such policies have a cash value. A policyholder may borrow money against the cash value or surrender the policy for its cash value.
Annuities
These are savings plans sold by insurance companies to provide a fixed and regular retirement income. If the annuitant [owner of the annuity] dies before receiving the guaranteed number of payments, the insurance company must continue the payments to the beneficiary.
Dividends
Some insurance policies refund part of the premiums in the form of dividends. Such policies are called participating policies. An insurance company pays dividends if the money it collected in premiums exceeds the amount needed to pay benefits and administrative costs. Dividends may also include a share of the profits the company earned on investments made with premium funds. Dividends are most commonly paid on life insurance.
2. Private Health Insurance
Health insurance pays all or part of the cost of hospitalization, surgery, laboratory tests, medicines, and other medical care. The rising cost of medical care has increased the need for adequate health insurance. You could suffer a major financial hardship without such coverage, especially in case of a serious illness or accident.
Dental insurance is one of the fastest-growing types of health insurance. It helps pay for a wide variety of dental services.
3. Property & Liability Insurance
Individuals and businesses buy property and liability insurance to protect their assets against financial loss. Property insurance provides direct compensation if a policyholder's possessions are damaged, destroyed, or lost as a result of perils. Liability insurance protects individuals and businesses against possible financial losses if their actions result in bodily injury to others or in harm to property owned by others.

The main types of individual coverage are:
o Homeowners Insurance
This provides protection against losses from damages to an owner's home and its contents.
o Automobile Insurance
This is the most widely purchased and most important kinds of insurance. Drivers are legally responsible for any costs arising from accidents they cause. This insurance protects a policyholder against financial losses from accidents.

Financial viability of Insurance Companies
Financial stability and strength of the insurance company should be a major consideration when purchasing an insurance contract. An insurance premium paid currently provides coverage for losses that might arise many years in the future. For that reason, the viability of the insurance carrier is very important. In recent years, a number of insurance companies have become insolvent, leaving their policyholders with no coverage (or coverage only from a government-backed insurance pool with less attractive payouts for losses).

How Insurance Is Sold?
Most insurance companies sell policies through agents. Exclusive agents are employees of an insurance company who sell only that company's policies. Independent agents sell policies for several companies.

Tag : Insurance
1 Komentar untuk "Insurance - All The Basics"

شركة تنظيف فلل بالرياض Perfect cleaning and cleaning of the villa's rooms and the use of a vacuum cleaner to remove dust and soil. The beauty and cleanliness of the place gives the use of steam cleaning machines that remove stains accurately and quickly and are used to clean canes and boards. Carpets, carpets and ceramics. If you are unable to execute these tips from شركة تنظيف بالرياض
شركة مكافحة الحمام بالرياض We provide you with a range of tips that prevent the nesting of the bathroom on the surface of your home you clean the surface and balconies from the remnants of the grain and clean it from waste and used furniture
شركة تنظيف منازل بالمدينة المنورة We have the ability to make your home an oasis of cleanliness and beauty. We have a dedicated team to clean every part of your home, but we are keen to provide important tips to keep your house clean for as long as possible: - After cleaning the cupboards and boards, Far from the kitchen and balconies so that no dust accumulates on them. Use fine-smelling detergents with a proportion of sterilized and disinfectant materials for the home. شركة تنظيف بالمدينة المنورة Use a vacuum cleaner to get rid of accumulated dust on a daily basis. Cleaning the glass home facades provides a perfect look for the home Provide you with a great service in cleaning your house if you can not do this hard work and effort شركة نقل عفش بالمدينة المنورة .
شركة تنظيف بينبع Provide you with a distinctive service in all types of private cleaning Carpet carpet cleaning using the steam cleaning machine makes it clean and fully sterile. You should clean the cupboards and boards twice a year to be clean and convenient to receive your guests. When you are unable to do this, you should contact us .
شركة نقل اثاث بينبع It is an ideal choice to carry out your home furniture without any effort or hardship. But if you want to do it yourself, arrange the clothing bags for your family so that you can remove the tires and wooden rooms easily. Transportation. Many things you can do .
شركة تنظيف منازل بمكة It is the best choice for you to clean the perfect parts of your home - Carpet cleaning and carpeting the best types of steam cleaning machines or sent to Cleaning and cleaning of beds and boards and putting mattresses on them to prevent the accumulation of dust and stains on them You must use high quality detergents to ensure high quality cleaning of all the items and parts of your home You need a daily cleaning of the kitchen and bathrooms to give a recovery and confidence in the cleanliness of the whole house شركة تنظيف خزانات بمكة Able to clean your home without bothering you or get tired at great cheap prices.
Visit our website
https://www.allsaad.com/

Back To Top