If you are a person who always had a doubt about what is Insurance and you had many questions about this topic in your mind so don’t worry because today we are here to answer all the questions and we will try to cover all the doubt of this topic. Today in this article we are going to cover the topic What is Insurance and we will discuss this topic in detail. So without any further delay let’s get started.
Insurance is a type of agreement a legal agreement which is done between two parties, the first one is the Insurance company who does your Insurance they are also called insurer. The second one is the individual any anyone who takes the insurance from the company, they are also called insured. The basic work of the insurance company is that they ensure you if any disaster will happen to you in the future so they will take all the responsibilities of fulfilling the loss as they promised to you before. So this is the major and basic advantage of taking Insurance. There are some principles of taking the insurance which a insured must know first. Whenever you take the insurance from insurance company after that by insurer which is insurance company a legal contract is given to the insured which is you. This is called insurance policy.
In this insurance policy all types of details are written which you must read like the conditions and circumstances under the insurance company will pay you amount later, what type of loss is done or if you are not alive then it should be given to your selected nominee. Insurance is very option to save yourselves and your family from the financial loss. Anybody, any individual or company can apply for taking insurance. Before giving you the insurance the company must evaluate your application and if they found all things good then only they will give the final answer. It may possible where the applicant is of high risk then company might say no to them for giving the insurance. One thing you must be know before taking insurance is that first you must select for what you are going to take insurance so that the insurer (company) must calculate the risk and also does other calculation then they tell you about the premium how much you have to invest.
Must read the policy very carefully because all the details are written in it like for what things you are eligible for taking insurance and for what not.
The term premium is known as the amount which you have to pay to the company once in every month or may be once in a year. This amount depends on the things of insurance which is going to cover.
Now how to claim insurance, if any disaster happens during the insurance period then you or your nominee will be eligible for claiming the insurance. For this you will have to give all the details of the accident which cross checked by the insurance company and if your claim proves right to every aspect and you will get the insurance amount as it was promised before.
Types of Insurance-
The most important types of insurance are-
- Life Insurance
As the name indicates in life insurance your life’s insurance is done.
- Health Insurance
Health insurance covers the amount of medical treatment
- Car Insurance
Car insurance is done for your car, here you insured your car in case of any accident or disaster.
- Education Insurance
By taking Education Insurance you will save amount for your children’s education.
- Home Insurance
In Home Insurance you do insurance of your home which covers all type of damage like fire or natural disaster happen to your home. So for covering all this you do a Home Insurance.