Insurance company

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.