Life has always been a risk. Humans are bound to take risks every day and live by the consequences- whether good or bad. Frankly, there’s nothing anybody can change about that. However, what people have the power to change is how prepared they are when they come to face with unexpected occurrences with dire consequences.
Over the years, insurance has been the way out for many. With insurance, you can enter a contract (mostly called insurance policy) with an insurance firm whereby the firm reimburses you or you get other financial support for every loss that you go through.
The arrangement is quite beneficial for all kinds of people and businesses. All a person must be concerned about are the insurance deductible, policy limit and premium.
This is the amount you must pay from your pocket before the insurance firm kicks in to compensate you for your loss. Precisely, it is a system that allows you to share risk with an insurance company. When you suffer a loss, the amount of your deductible gets subtracted from the amount you are eligible to claim.
This is the maximum amount the insurance firm will pay you for any loss you suffer. The limit gets determined by what you insure and the kind of insurance policy you hold.
This is the amount you pay for a contract of insurance. The premium is the income of the insurance firm.
Types of Insurance
Different kinds of insurance cover various aspects of life. Some of them are:
This kind of insurance covers private properties. It’s a kind of insurance scheme that protects against the loss of one’s home, things in the home or even the value of the home.
This is the insurance scheme that covers the risk of a person incurring medical expenses. It is a coverage that provides a person with benefits as a result of sickness illness that such individual has suffered.
This is a kind of insurance that covers your car or vehicle. You enter this insurance scheme to protect yourself from the damage that comes from vehicular collisions on the highway by setting aside some financial backup with the insurance firm to settle the loss or damage caused.
This insurance scheme offers protection from any events that could cause loss during the business. It covers a lot of business-related events such as employees-related risk, legal liability, property damage, etc.
Based on potential risks, businesses evaluate their insurance needs and enter such.
This kind of insurance scheme covers the risk that comes with travelling. In most case, it provides indemnity against loss of luggage while travelling, delayed flight, cancelled trips or even medical emergencies while travelling.
This insurance scheme typically is like the equivalent of health insurance for humans; it helps to lessen the veterinary cost of keeping the pet healthy.
This insurance always comes to play after a person’s death. With this, the insurance firm pays out some amount after the insurer’s death or after some stimulate time.