Insurance? and Types of insurance.
Insurance is a Legal deal between an Insurance Company and a Customer. In this Insurance Deal or Policy, the customer has to pay for a certain time period or pay a Premium, instead of which the insurance company Financially helps in case of any Unforeseen event.The insurance deal or policy is also different for different types of insurance. So, in this article we will know: - what is insurance and how does insurance work, what are the different types of insurance in market, Benefits of insurance and why do we have insurance?
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| Insurance? and Types of insurance. || theeco.info |
What is insurance / Introduction to insurance / Definition of insurance.
Insurance is a process that compensates for the risks of individuals in the group by using the funds contributed by group members to pay the losses.Insurance is a contract between the insurance company and an individual or the insured. The insurance company promises to pay a specified amount to the insured in return for a consideration or the premium on the happening of a certain event.
Although, Insurance cannot prevent unwanted events or cause of loss from happening but it protects the policy holder by compensating him the promised amount of loss.
Example- Your phone is the most prized possession suppose it was stolen or got damaged. Wouldn't it be difficult to ask your parents for another phone? Wouldn't it be nice if you could get compensated for the lost phone? this can happen through insurance.
If you had an insurance cover on the phone the risk of losing the phone and the monetary loss associated is being transferred to the insurance company, but for a price which is called premium and the insurance company would give you an amount to cover the value of the phone in case the phone gets lost.
Losing the phone is a type of risk. Risk means the chance of suffering loss due to the possibility of adverse events beyond the control of man. The events that give rise to such risks are called perils human lives, individual properties, industries, infrastructure and other assets may be destroyed lost are made non-functional due to an occurrence of floods, hurricanes, tornadoes, earthquake and other perils of nature. Some perils are also man-made like accidents, occurrences of fire, burglary etc.
The Different Types of Insurance.
Insurance is broadly classified into life insurance and general insurance. life is invaluable and the loss of life cannot be compensated by any amount of money.Hence life insurance policies are termed as benefit policies of protection and anomaly considered a means of protecting one's family against the unforeseen circumstances of death of the earning member.
General insurance provides many benefits to society by offering financial protection to individuals, families, businessmen and industries in the event of unforeseen catastrophe losses to their assets and property.
The types of insurance we're talking about in this article are the basic for insurance types.
- Health insurance.
- Disability insurance.
- Long-term care insurance.
- Life insurance.
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| The Different Types of Insurance. || theeco.info |
Health insurance.
This is insurance that provides money to pay for Health Care costs that are covered by Health insurance policy.Risks Covered (Health Insurance).
The types of risks it covers include doctor visits, Hospital bills, different medical procedures, mental health treatments, sometimes Vision Care, preventative care, dental care and prescription drugs. Those are just examples of some of the risk’s health insurance can cover.
Importance of Health insurance.
Health insurance is really important and ever since the affordable care Act. It's actually been required, even if you don't have a lot of money. Health insurance is still really important because you don't know when a medical expenditure might have to happen. You don't really control your health some time you can control like how well you eat or not being careful around dangerous situations but sometimes things are out of your control and medical bills are so expensive health insurance is a huge part of help for your financial.Disability insurance.
Disability insurance deals with if you're unable to work or live independently and that's called disability insurance. This is payment to replace earnings during times when workers cannot work due to illness or injury.Disability insurance comes types short term disability insurance and long-term disability insurance. For example, when a person is ill for some time, he is able to go on short term disability. So that person will have to pay a premium for a few months. He keeps taking his salary even in the event of not working. Long term disability is for a bigger event. If your leg breaks or you're in the hospital for months on end that would be covered by long-term disability.
Long term care insurance.
Long-term care insurance is payment for extended care months or years it's whenever a person can't live independently but doesn't need to be hospitalized.Typically, this comes with older people who want to live at home that might need like a nurse to come by daily to administer something or totally take care of themselves. But they don’t need to be in a hospital so that would be under long-term care insurance. And again, the difference there's a long-term disability insurance that just means you're out of work before a set amount of time that planned on returning to work. Whereas long-term care insurance is you need help kind of doing your day-to-day living existence.
Life insurance.
Life insurance is a payment to beneficiaries if an insured person dies. Beneficiary means that's someone who receives insurance money if the insured person dies. For example, your loved ones they mean everything to you. You provide for their everyday need sand their future dreams but what if something were to happen to you. No one wants to think about dying but have you ever wondered how your loved ones would manage financially. Wouldn't you like to know you can with life insurance? having life insurance means that if you were to die your loved ones would receive money that would allow them to pay funeral costs, monthly bill, sand living expenses, any outstanding debt, including medical bills, credit cards, and mortgage and allow them to finance future needs like your children's education or your spouse's retirement.Employee – Provided insurance benefits.
All the types of insurances that are frequently offered by your Employee and are taken out of your salary. Insurance company will never usually cover the entire costs of insurance. Typically, you have to pay a portion of your insurance costs but it's beneficial because it's typically cheaper than finding insurance on your own the policies can typically be expanded to include your family.Employee – Provided insurance is beneficial because…
- Usually cheaper than finding insurance on your own.
- Policies can usually be expanded to include your family.
- No income taxes are paid on the portion of income spent on insurance.
Benefits of insurance.
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| Benefits of insurance. |
The first reason is that usually the payment you get from insurance companies will be much higher than the amount of premium you paid, so it actually uses financial security support, so you can understand that You are not wasting money.
Second reason is that if something terrible happens to you and your family, the payment from the insurance companies can help your family even in your absence.
Third reason is that if you have insurance on your property (car, mobile, home) then you are ready for any kind of undesirable event and peace of mind that if something happens that money is available to cover the event.
The fourth reason is that if you have health insurance, in this situation, you are ready to spend your health-related disability, chronic illnesses, money flows like water in these diseases.
That is all we have on this topic if you have any question please do write in the comment section below and do not forget to subscribe to our newsletter for more such great post have a great time ahead.
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