Protecting what matters, securing your future – Insurance
Insurance is a contract in which an insurer indemnifies another against losses from specific contingencies or perils. A contract in which an individual or entity pays an insurance company in exchange for financial protection or reimbursement of losses resulting from a covered event. In simple words, Insurance is a type of contract that transfers the risk of something bad happening to an insurance company. In exchange for paying a fee or premium, the insurance company promise to help cover the costs of the unexpected event. Insurance’s main goal is to reduce the financial impact of an unexpected event. When people have insurance, they are less worried about the costs associated with a bad situation because they know they will have help praying for it.
Parties involved in an insurance transaction: The parties involved in an insurance contract are the insurer, the insured, and sometimes a third party:
Insurer: The insurance company that accepts the risk of the insured in exchange for a premium.
Insured: The person or entity being insured, who receives compensation from the insurer if a specified event occurs.
The agent: The person who helps you buy the insurance policy. Agent represents either the insurance company or works independently to find the best policy for the insured.
The underwriter: The person at the insurance company who decides how much risk they are willing to accept and how much to charge for the premium.
Premium is the amount the insured pays to the insurance company to have coverage. Insurance the financial support, decreases. Risk, Stability of living standard, motivation and many more benefits. There are different types of insurance.
Life insurance: A life insurance policy or cover enables the financial stability of their dependents after passing away.
Motor insurance: To prevent suffering any financial losses that can result from theft or damage of their car, or bicycle.
Health insurance: When a policyholder is admitted to a hospital for treatment, health insurance helps to pay for their care.
Travel insurance: These policies ensure the financial security of a traveller while they are away.
Property insurance: We can insure any structure or immovable object using property insurance products.
We will probably invest a significant amount of money in insurance throughout our lifetime and buy several policies. We must be aware of what each form of insurance covers and how it functions to make the best purchasing decision.
~ Neha Singh, IMS Ghaziabad