How To Pick The Best Insurance Policy
Insurance is one of the most important parts of risk management
. As Insurance is one thing we all need at some point in our life, it is good to understand the concept before buying it. Here are some of the types of Insurance:1. Life Insurance
2. Health Insurance
3. Keyman Insurance
4. Home Insurance
5. Travel Insurance
6. Automobile Insurance - For boats, cars, motorbikes, and other vehicles.
If we had the ability to predict the future and make plans accordingly, insurance would be a simple business. But as that is not possible, you will find that insurance is a tricky business, and a crucial part of risk management. Insurance is nothing but a legal contract with the insurer which provides you monetary relief for specific damages suffered, in return for a sum of money. Here are the types explained in detail:
Life Insurance:
Everyone wants to protect their family and provide security for the future; a life insurance policy is the best way to ensure this. In this insurance you will find a contract for the financial stability of one's family, after the death of a certain member. This policy helps the family financially after the owner of the policy passes away. When it comes to whole life insurance, the company will collect a premium from the policy holder for her/his whole life, or until the time of retirement. The claim will be paid to the insurer's family only after her/his death. Life insurance policies fall into two types:
1. Investment policies
2. Protection policies
This kind of an insurance plan is suited best for all those employed and who will retire after a specific time. Taking a good life insurance plan will help you save extra after your retirement. The terms "insurance" and "assurance" are often confused. The word "insurance" provides relief for an event that may happen in the future, such as - fire, theft, etc, and "assurance" is used for an event that will happen certainly, such as - death. "Insurance" is the generally accepted term, however, people using this description are liable to be corrected.
Health Insurance
This kind of insurance is where the insurance company provides or pays for health care services in exchange for monthly payment of premiums. Health insurance includes dental, accident and medical insurance. Most of the developed nations have government-funded health care; this means that most of the citizens have access to medical facilities and treatment, as well as health insurance. This is one of the most important types of insurance, as anyone can fall sick at any given point of time or get into an accident. Before health insurance existed, all patients were expected to pay health care costs by themselves. Can you imagine the bill, if we had to pay for the health expenses today? It is very important to understand and purchase a plan as per your medical needs. You need to analyze if you are someone who makes regular visits to the hospital, or you can handle the minor medical expenses such as cold and flu. These will help you determine which kind of policy will benefit you the most.
Key man Insurance
This is also known as key person insurance, and is one of the most important forms of business insurance. This insurance is designed to financially protect the prosperity of the business. A key man insurance is complicated compared to other policies, so it needs to be given a lot of thought. This plan provides resources that will help the company to cope with unanticipated or sudden loss of an individual who is considered essential for the successful operation of the business. The premium rates, contract terms, tax rates and amount of coverage differ, as with all types of insurance policies. This policy basically revolves around a key person who is vital for the company's future. This person could be anyone directly associated with the company, for example - director, partner, manager, representative, etc.
Home Insurance
This is a kind of property plan that includes private houses policies. While some may think this is an expensive payment, remember it is valuable and a worthy investment on your property. The premium is low if there are lesser chances that the house will be destroyed or damaged, the rates vary from place to place. Depending on your place of residence you may need additional coverage for earthquakes, flooding or windstorms. Every homeowner's insurance policy provides a combination of property and risk coverage, you need to do a little research and find out the one that is best suited for you. Here are some of the factors that are part of analyzing you home, and deciding your premium rate:
1. How old your house is
2. How it has been maintained
3. Its location
4. The size of your house
Travel Insurance
For all those high risk travelers, travel insurance is a must. This type of plan helps to protect you against various risks, such as cancellation, delay, loss or theft of baggage, medical emergencies, personal liability, unforeseen interruptions etc. If you are unfortunate enough to have some medical emergencies while traveling, they can be extremely expensive to treat in foreign countries, therefore it is wise to have a travel policy. You may not need this type of policy if you do not travel frequently or if you travel locally. But if traveling is part of your job description, a good travel plan may become essential. Travel insurance plans are great even if you are into some high risk activities on your trip, such as climbing mountains, parasailing etc. Many travel companies offer a reasonable plan for all travelers depending upon the individual's requirements.
by: SherlockSmeath BAR / PUB INSURANCE: Without It, You Could Be Calling Time Early Why Sr22 Insurance Is A Good Option Mold Damage And Insurance How to Find the Best Insurance Agent in Orange County Emergency Repairs And Your Insurance Company For Those Who Have Mis Sold Insurance Honda Motorbike Insurances Causes Migraines Harley Motorbike Insurance: Better Than A Gremlin Bell Yamaha Motorbike Insurance: Unexpected Ways To Find The Best Cover Suzuki Motorbike Insurance: Price Determining Bullet List Honda Motorbike Insurance: Top 3 Tips To Cut The Costs Harley Motorbike Insurance: Weird Ways To Cut Costs Classic Harley Motorbike Insurance: Learn How To Keep Your Money