Classifications of Insurances
As regards to the law and to economic, an insurance is defined as a form of risk management that is exercised to prevent potential loss. Companies that sell the insurance is referred to as an Insurer. This has been a very profitable business worldwide. With different companies come with different insurance rates or premiums. A life insurance; off the top of the head would be a good example. A certain amount of premiums is paid by an individual to an ensurer. When the person pass away, the predefined amount will then be given to his family.
Types of Insurance
Not one thing can be foreseen on our hostile planet. Any form of accidents or diseases can happen at a moment’s notice. So, we must stay vigilant.
Health insurances are offered by many insurers Medical expenses encountered by the insured person on the event of sickness or injury will then be compensated by the insurance company. A pact between the insurance company and the individual insured is then held by law.
This is a protection formulated to adjust for the costs of dental care is alluded to as dental insurance. Dental insurance provide aid for people to bare with the economical strife brought by abrupt dental expenses.
The insurance acquired for auto mobiles or vehicles such as cars and trucks is called an automobile insurance or simple auto insurance.
The main advantage of an auto insurance obviously is the added protection against losses due to road accidents. If an abrupt accident happens to an insured vehicle and is damaged, the expenses for the repair are then paid by the insurance company. Auto insurance companies offer replacements as well in the event of the vehicle being destroyed completely. In a lot of countries it is mandatory to secure an auto insurance. Different companies provide different quotes, one can choose the one that think secures them the most by comparing these.
If your pet is covered by insurance the veterinary expenses will be paid by the company if ever the pet is suffers injuries or is struck by illness. Some companies have policies that pay you if your insured pet gets stolen or lost and if your pet dies. Pet insurance companies are mostly present in developed countries.
Life insurance have the law bind the contract between the insurance company and the insurer. The contract states that if the insured individual dies the insurance company will then pay a sum of money to the family of the deceased. The insured individual will then pay premium to the insurance company in exchange. There are two variations of life insurance, the protection and the investment policies. There is also another form of life based insurance and is called the term life insurance.