According to Wikipedia, insurance is:
"Insurance, in law and economics, is a form of risk management primarily used to hedge against the risk of a contingent loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium, and can be thought of as a guaranteed small loss to prevent a large, possibly devastating loss"
Insurance can be 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.
At Free Insurance Quotes Site we have some great offers that you don't want to miss! Feel free to fill out the form and do the insurance quote. Most important - it's free of charge and you can save up to $550 for year or more!
There are a lot of types of insurance, but let's stick with the main ones:
Auto Insurance
Auto insurance also known as
- vehicle insurance
- car insurance
- motor insurance
It 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.
There were more than 180 million automobiles in USA in 2006. About 175 million were covered by auto insurance companies. It's the largest auto insurance market in the world. There are more than 35 million automobiles in Russia. About 34 million are insured as well. China - 10 million insured automobiles.
Auto insurance provides:
a) Property coverage - it pays for thief 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.
Insurance premium varies for males and females, teenagers and adults. According to the statistics males drive more miles than females and consequently have a proportionally higher accident involvement at all ages. Teenagers who have no driving record will have higher car insurance premiums as well.
Owners of sport cars, motorcycles would have higher insurance premiums as opposed to compact cars, midsized cars and electric cars.
Your auto insurance policy is a contract, most polices are issued from six months to one year period. In USA, Russia, Brazil, Japan auto insurance company should notify you by mail, phone or any other method to renew your policy.
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 homeowners insurance as well. In the real estate industry it is abbreviated as HOI.
This is the type of insurance that covers private homes. It can include:
- losses occurring to one's home
- loss of home use
- home contents
- loss of other personal possessions of the homeowner
In some geographical areas, it is necessary to buy additional insurance plan for certain types of disasters, for example:
- flood insurance
- earthquakes
- war
They excluded from original policy plan and require additional coverage. Home insurance policy is a lengthy contract. It names what will and what will not be paid in the case of various events. It can be seasonal or long term.
Home insurance company should notify you by mail, phone or any other method to renew your policy.
Health Insurance
Health insurance is the type of insurance that pays for medical expenses. It also known as:
In 2008 approximately 84% of USA citizens have health insurance:
Health care system is mainly in private hands in USA. Hospitals and doctors generally funded by payments from patients and insurance.
Hospitals provide some outpatient care in their emergency rooms and specialty clinics, but primarily exist to provide inpatient care.
In 2008 a report by the Commonwealth Fund ranked the USA last in the quality of health care among the 19 compared countries. According to the Institute of Medicine of the National Academy of Sciences, the United States is the "only wealthy, industrialized nation that does not ensure that all citizens have coverage".
Life Insurance
Life insurance is also known as life assurance. 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. Policyholder pays a fee at regular intervals or in lump sums. This fee is called a premium.
Life insurance can be:
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:
Upon the insured's death or illness the insurance company requires acceptable proof before it pays the claim. For example list of necessary documents that required upon the policyholder's death:
At Free Insurance Quotes Site we have some great offers that you don't want to miss! Feel free to fill out the form and do the insurance quote. Most important - it's free of charge and you can save up to $550 for year or more!"Insurance, in law and economics, is a form of risk management primarily used to hedge against the risk of a contingent loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium, and can be thought of as a guaranteed small loss to prevent a large, possibly devastating loss"
Insurance can be 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.
At Free Insurance Quotes Site we have some great offers that you don't want to miss! Feel free to fill out the form and do the insurance quote. Most important - it's free of charge and you can save up to $550 for year or more!
There are a lot of types of insurance, but let's stick with the main ones:
Auto Insurance
Auto insurance also known as
- vehicle insurance
- car insurance
- motor insurance
It 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.
There were more than 180 million automobiles in USA in 2006. About 175 million were covered by auto insurance companies. It's the largest auto insurance market in the world. There are more than 35 million automobiles in Russia. About 34 million are insured as well. China - 10 million insured automobiles.
Auto insurance provides:
a) Property coverage - it pays for thief 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.
Insurance premium varies for males and females, teenagers and adults. According to the statistics males drive more miles than females and consequently have a proportionally higher accident involvement at all ages. Teenagers who have no driving record will have higher car insurance premiums as well.
Owners of sport cars, motorcycles would have higher insurance premiums as opposed to compact cars, midsized cars and electric cars.
Your auto insurance policy is a contract, most polices are issued from six months to one year period. In USA, Russia, Brazil, Japan auto insurance company should notify you by mail, phone or any other method to renew your policy.
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 homeowners insurance as well. In the real estate industry it is abbreviated as HOI.
This is the type of insurance that covers private homes. It can include:
- losses occurring to one's home
- loss of home use
- home contents
- loss of other personal possessions of the homeowner
In some geographical areas, it is necessary to buy additional insurance plan for certain types of disasters, for example:
- flood insurance
- earthquakes
- war
They excluded from original policy plan and require additional coverage. Home insurance policy is a lengthy contract. It names what will and what will not be paid in the case of various events. It can be seasonal or long term.
Home insurance company should notify you by mail, phone or any other method to renew your policy.
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
In 2008 approximately 84% of USA citizens have health insurance:
- About 9% purchase health insurance directly
- About 60% obtain it through an employer
- About 20% of Americans obtain health insurance from various government agencies.
Health care system is mainly in private hands in USA. Hospitals and doctors generally funded by payments from patients and insurance.
Hospitals provide some outpatient care in their emergency rooms and specialty clinics, but primarily exist to provide inpatient care.
In 2008 a report by the Commonwealth Fund ranked the USA last in the quality of health care among the 19 compared countries. According to the Institute of Medicine of the National Academy of Sciences, the United States is the "only wealthy, industrialized nation that does not ensure that all citizens have coverage".
Life Insurance
Life insurance is also known as life assurance. 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. Policyholder pays a fee at regular intervals or in lump sums. This fee is called a premium.
Life insurance can be:
- Temporary.
- Permanent
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
Upon the insured's death or illness the insurance company requires acceptable proof before it pays the claim. For example list of necessary documents that required upon the policyholder's death:
- Death certificate
- Completed, signed and notarized claim form
1 comments:
Awesome post. In this article you have clearly mentioned the need and importance of buying insurance. Insurance is the best way of managing risk which is recommended by most. Thanks for sharing the basics of insurance.
commercial insurance brokers
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