Insurance is a defensive measure used against future contingent losses to cover the possible risks of the future. It is a legal contract that protects a person against the potential risk of losses through financial resources and provides a means for individuals and societies to address some of the risks in daily life.
These insurance contracts are called policies and are provided by insurance companies. The insurance companies charge a regular amount of the customer, which is fully or partially refunded to the customers in the event of a permanent loss. This regular amount that is charged by customers is called Insurance Premium.
Decide on Your Insurance Needs
Before you can consider the different types of life insurance policies, you first need to determine what your insurance needs are. Think about what stage of life you are in, what your financial responsibilities are and what your dependents are. As a single young person, few will apply to you. However, if you are married and are planning to start a family, you should consider your insurance options. Even if your partner is at work, you can count on both of your earnings to meet your current lifestyle. If something happens to one of you, you need adequate life insurance so that you or your surviving spouse can be financially sound. Insurance is particularly important if you are the main breadwinner of the family. Although it is the more expensive option, it is sometimes worth looking at complete life insurance and term life insurance policies. Because nobody knows when their life will end, you have to look at all available alternatives. Later in life, your spouse may even be more financially dependent on you because they may stop working or become ill. In the case of your death this would mean that they would not be able to support themselves and the payment of an insurance policy can be very important.
Reasons of Insurance
Sometimes it is not possible in life to avoid the losses. For example, people can become ill. They can die from illness or accidents or their homes or other property can suffer damage or theft. So, in all these cases they have to face the loss of income or savings. Insurance is thus a way of ensuring financially that if such an incident occurs, the loss has no influence on the current welfare of the person.
It seems like there is insurance for just about everything. There is a car insurance policy to cover us in case we have car accidents, there is a health insurance policy to cover us in case we get sick or need a major operation. There is insurance from homeowners in case our house is burnt down or flooded (although you carefully check your policy, it probably does not contain flood insurance!). There is even a life insurance policy that pays large sums of money to your family in case you ever die, so that their quality of life does not diminish, simply because your salary has disappeared.
The problem with commercial car insurance is that it significantly increases the total cost of your business. On the other hand, it is an important part to protect your financial investment in daily activities. You must ensure that you purchase the insurance only from a reputable carrier in order to minimize the risk of financial loss, but without sacrificing the quality of the protection. Ocean Harbor Insurance has been active in this sector for more than a century and has one of the best financial institutions to protect your investment in your business. It is now the 8th largest commercial property and accident insurance in the United States. Ocean Harbor Auto Insurance is only part of the full service that Ocean Harbor offers.
Locations of Insurance
1. A certain definitive loss must occur at a known time, at a known location and from a known cause. Therefore, the time, place and cause of the loss must be clear enough.
2. The incident representing the cause of the claim must be accidental or outside the control of the beneficiary.
3. The extent of the loss must be significant from the insured’s perspective. Insurance premiums must cover both the estimated costs of losses, plus the costs of the policy, the regulation of the losses, and provide the client with a logical assurance that the insurer would be able to reimburse claims.
4. The premium amount must be payable.
5. The possibility of loss and the expense
A medical insurance is also called medclaim. According to this policy, the insurance pays the amount to the insured person for his health purposes. This amount covers the costs of medical treatment.
There are two types of disability insurance policies. One is simple occupational disability insurance and the other is total disability insurance. In the case of simple occupational disability insurance, the insurer provides financial support to the policyholder on a monthly basis if he is unable to work due to an injury or illness. But permanent disability insurance offers compensation if a person becomes permanently disabled.
It includes car insurance, business insurance, real estate insurance etc.
Car insurance: in the UK this insurance is called car insurance. It compensates for the loss or damage to the vehicle. But in the United States, car insurance is essential to allow a vehicle to work legally on public roads.
Business insurance: Business insurance protects companies from risks of loss and damage and compensates in case of loss
Property insurance: this type of insurance protects the property from the risks such as fire, theft, etc. This category also includes fire insurance, flood insurance, earthquake insurance, etc.
Fire insurance: it is an insurance policy that damages the property caused by fire.
Flood insurance: this type of insurance pays the policyholder in case of loss or damage to the property as a result of flooding. It protects the property against the floods.
Earthquake insurance: this insurance compensates for any damage to the property caused by an earthquake.
Insurance plays an important role in sharing the risks of people in an affordable form. It helps people to quickly recover from damage and losses.