Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium. An insurer is a company selling the insurance. The insurance rate is a factor used to determine the amount, called the premium, to be charged for a certain amount of insurance coverage. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice.
Some Insurance Types
Different types of Insurance plans are offered based on your needs. Some of them are
• Life Insurance
• Health Insurance
• Dental Insurance
• Automobile insurance
• Property insurance
Life insurance is a contract between an insured and the insurer, where the insurer agrees to pay a sum of money in case the insured individual dies or some other event, like terminal illness or critical illness. In return, the insurer consents to pay an agreed amount termed as a premium at regular intervals or in lump sum.
The term health insurance is generally used to describe a form of insurance that pays for medical expenses. Basically, the client pays a sum of money called the Premium and in turn the Insurance firm would commit to pay a predetermined sum of money to meet the customer’s claims. Health insurance plans are offered in two categories. They are individual and group insurance policy. The individual plans covers health costs for a single person whereas the group health insurance plan covers medical coverage for the entire family.
Dental insurance covers dental costs for an individual or group. The costs include normal dental care cost as well as damage to teeth in an accident. Dental insurance protects people from financial hardship caused by unexpected dental expenses.
Auto insurance protects the policy owner against financial loss if he has an accident. It is a contract between policy owner and the insurance company. The policy owner agrees to pay the premium and the insurance company agrees to pay the losses as defined in your policy.
Property insurance gives protection against your property. This includes specialized forms of insurance like fire insurance, flood insurance, earthquake insurance, home insurance etc.