Protection and assurance are two of the things people want most in their lives. Well, they might not get that everywhere, but at least, insurance is there.
Insurance is a contract, represented by a policy which entitles an individual or entity to receive financial protection or reimbursement against losses. The insured needs to pay a certain amount to the insurer to avail the insurance. The insurance contract must be signed by both parties, the insurer and insured in an absolute trust, they should not hide anything from each other’s interest. The person getting insured must be insurable in the object of insurance that means you cannot get the insurance policy.
Three types of insurance are briefly discussed below.
Life insurance is a financial product that gives protection to you and your family with regards to unexpected things that happen in life whether it is death, accident or a critical illness that you developed. Does everybody need life insurance? Everyone is encouraged to get his/her own life insurance because in the near future, beneficiaries, families will benefit from the life insurance that he/she gets.
There are two types of life insurance: the term life insurance and the variable link insurance. For the term insurance, every year you pay is the only that year you are covered, while the variable unit link insurance is a life insurance with an investment component.
Having life insurance is a big investment. It is useful in times of emergency. Really, having life insurance is preparing for the future for your own good and for your loved ones too! It is a lifetime benefit which your children can inherit.
The second type of insurance is car insurance. It is a contract between you and the insurance company which protects you against the loss in the event of an accident or theft. Car Insurance provides coverage for property such as damage or theft of your car, liability guard, legal responsibility to others for injury or damage. It also covers medical matters such as the cost of treating injuries, rehabilitation and funeral expenses. Car insurance generally has a one year timeframe and is renewable. Your car insurance helps you in cases of accidents, in terms of repair and maintenance and if people are involved.
Business insurance is an insurance contract that basically would cover your business from all different types of risk that business faces. The primary risk that you should be looking at are loss of profits, loss of manpower, loss of assets and liability cancellation. There are different kinds of business insurance as well. Loss of profit insurance. When any business owner is conducting a business their biggest fear is loss of profit. There is also a loss of assets. Your building, facilities, equipment, furniture, appliances are part of your business assets too.
Insurance is indeed a security in many ways for an individual. It provides a guarantee of compensation for loss, damage and whatsoever condition it covers from unfortunate events.
Nicole Ann Pore is a writer, an events host and a voice over artist. Travel, health, shopping, lifestyle and business are among the many subjects she writes about. She also writes for Insurance Advisernet. She graduated Cum Laude from De La Salle University Manila, Philippines with a Bachelor’s Degree in Communication Arts.