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Insurance
Insurance
is the way you can transfer any loss you might suffer to another
person, called the insurer, who charges a monthly sum called
premium.
Insurance is today available for all manner of things. You have
insurance cover for health, car insurance, life insurance, home
insurance, travel insurance, disability insurance.
Health cover helps reduce your costs on medical care. If you or
your family members were to suffer from any disease, not
preexisting, and require hospitalization or care at home, health
insurance would cover you for all the costs, depending on the
kind of policy you have taken. In many countries, health
insurance cover is a mandatory requirement. Some policies
require to cover the first 10 or 5 per cent of the total costs,
and the balance is taken care by the insurance company.
Life insurance is a policy taken on the life of a person. If the
person dies during the pendency of the policy, then the
survivor, who generally is named in the policy, get the sum of
money for which the deceased was insured for. Life insurance is
generally available if the person insured commits suicide. It is
necessary that while taking life insurance, all documentation is
complete and premium is paid on time. There are various types of
life insurance as well. You can take it for 15 years, 10 years,
at the end of which, the survivor, that is the insured himself,
will receive a certain sum of money, that is the premium paid
for the period, as well as a bonus as well.
To avoid litigation or having to pay costs for repairs or for
accidents to vehicles, car insurance is generally mandatory in
all countries. Here too, there are a few types, one which is
comprehensive, which means if anything happens, including theft,
or an accident, then all costs of the repairs are paid. Another
is called third - party liability. Here the insurer generally
pays for the accident repairs of the person against whom you
crashed your car, but not for the repairs to your own car.
Just as these insurance policies afford protection against
accidents, health problems and life, you can also insure your
home against theft, fire or vagrancy. Based on the assets,
including the building itself, that you have, say, a TV, a
refrigerator, an expensive kitchen or entertainment appliance,
all can be insured against any loss.
While traveling too, there can be accidents such as a car crash,
a vehicle failure, other forms of accidents. You can protect
yourself against these hazards by taking out travel insurance.
Another form of insurance which protects you is called
disability insurance. In other words, you are covered for any
disability that may arise, either due to an accident, or other
circumstances that may create a disability disease, and that
prevents you from having full use of your limbs or partial use
only. Generally, this form of insurance is taken by an employer
to cover his liability for any accident takes place in the work
place.
One point to remember in taking out any form of insurance is to
read the fine print critically. When signing up, do not hide
anything from the insurer. A contract of insurance is a contract
of utmost good faith. If it was found that some material fact
was hidden, the insurance company is NOT responsible, and the
contract of insurance becomes void.
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