March 29, 2024

Insurance

People can select an appropriate insurance plan according to their own and their family’s needs. However, a proper analysis is a must before making the final decision.

Insurance can either be a Personal or Business one, but the main goal of insurance is to insure you or your business against a possible loss. Term insurance can be described as: A small loss that prevents a large, possibly devastating loss.

Insurance protects you against financial loss in a future if you have an accident. Insurance is a contract between you – a policyholder (person or entity buying the insurance), and the insurance company. Policyholder’s payments are called premium.

There are a lot of types of insurance, but the main ones are as follows:

Auto Insurance

Auto insurance also known as

– vehicle insurance
– car insurance
– motor insurance

An auto insurance policy is purchased for cars, trucks, motorcycles and other vehicles. The primary use of auto insurance is to provide protection against losses incurred as a result traffic accidents. Those who have previously been charged with dui may need sr22 insurance to continue driving.

An auto insurance policy provides:

a) Property coverage – it pays for thieving or damage of your car
b) Medical coverage – it pays for your responsibility to others for bodily injury or property damage
c) Liability coverage – it pays for the cost of treating injuries, lost wages or even funeral costs.

You can learn more about general liability insurance here.

Home Insurance

As auto insurance, home insurance provides compensation or insure you against damage of a home from disasters. Sometimes it’s called hazard insurance or homeowner insurance as well. For instance, if you need roofing repairs or replacing it with timber roof trusses by a professional commercial roofing or residential roofing contractor like Knox Roofing and Construction, then depending on your insurance terms, this will be covered.

This is the type of insurance that covers private homes. It can include:

• losses occurred to one’s home
• loss of home
• home repairs
• loss of other personal possessions

Health Insurance

Health insurance is the type of insurance that pays for medical expenses. It also known as:

• health coverage
• health care coverage
• health benefits

This policy can be purchased by individual or company on group basis to cover its employees. Health insurance policy is a lengthy contract. Policyholders should pay premiums to help protect themselves from unexpected healthcare expenses. The insurance contract can be renewable annually or monthly.

Life Insurance

The insurer (or Life Insurance Company) agrees to pay sum of money upon the occurrence of the policyholder’s death, illness, critical illness, terminal illness or other event. The policyholder pays a fee at regular intervals or in lump sums. As with most insurance policies, life insurance is a contract between the insurer and the policyholder whereby a benefit is paid to the designated beneficiaries if an insured event occurs, which is covered by the policy.

Insured events that may be covered include:

• Protection policies
• Investment policies
• Illness

Each contract may include limitations of the insured events. Usually, there is a limit the liability of the policyholder: for example, claims relating to war, suicide or fraud. Any misrepresentations by the insured on the application will cause the nullification of the contract.

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