What is Insurance?
Definition – Insurance is a bond, described by a policy or plan, in which insured person or entity get financial safety or remuneration against damage from an insurance provider or company. The Insurance Company try to reduce clients risk to make payments more economical for insured person.
Insurance policy or plan used to fence against damage of financial loss, both small and big, which may result from loss to the insured or their wealth or from injury lead to third party.
Let’s Know More about in Details
There are many types of insurance policies available in the market some of the main insurance product category are health insurance, life insurance, motor insurance, personal accident insurance, home insurance, term insurance etc.
There is specific insurance plans to suit the individual’s and business need correctly. Businesses need certain types of insurance plans which give protection from specific kind of risk faced by particular business. For example electronics shopkeeper needs insurance policy which cover them against any kind of loss due to short-circuit or fire.
An auto dealer does not require this type of coverage but need insurance coverage for personal accident cover. There is some more specific type of insurance plans like professional liability insurance and medical malpractice etc.
Factors of an Insurance Policy
Whenever you choose an insurance policy it is important for you to understand or check out how insurance policy works. There three important factors of insurance plans are premium, policy limit and deductible. Insurance firm who understand these all the concept can help you to choose a better insurance policy which best suits your requirements over different types of insurance policy.
Premium of insurance policy is something called cost of policy, generally represent as monthly cost. Insurance policy premium is being calculated based on the risk factors of your business profile or individual’s needs. For example you own some expensive home appliance then it may cost more insurance premium to secure your house with insurance.
It is a limit which says that the maximum amount an insurance company will give you under insurance covered loss or damage. Maximum amount that insurance company will pay may set per period (for example annual or policy term) per injury or loss, or some policy cover lifetime known as lifetime maximum.
It is a certain amount that insured must pay from his pocket before insurance company pays a claim. Deductible can be applicable per policy or per claim depends on the insurance company and the policy nature.
Insurance plans which are very high deductible in nature are generally less expensive due to the more amount paid from insured pocket.
Popular Kinds of Insurance Products
1. Health Insurance
It is a kind of insurance cover which give you protection against any type of loos done due to hospitalisation or medical reasons.
2. Life Insurance
It is cover for life events like if any happened with you accidentally in future than the amount of insurance cover given to your family members.
3. Car Insurance
These type of insurance cover your car from damage done to your car due to an accident or it also cover loss/damage done form third party.
4. Home Insurance
This type of insurance coverage help you to keep you expensive home appliance safe and secure from fire or any unaccepted loss.
5. Critical Illness Insurance
It give you protection from critical illness which all are not covered under normal health insurance policy.
6. Corporate Insurance
7. Specific kind of Insurance
This kind of protection needed when there no specific insurance available in the market like cancer coverage.
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