Insurance
Insurance can be termed as a bond for compensation of the specific possibility of future losses in exchange for a periodic payment of premiums. Insurances are for the purpose of protecting the well being of an individual or the financial condition of a business, property, etc, at times of unexpected mishap and losses. Once when you avail insurance, it means you agree to a specific condition, wherein you are needed to pay a sum of money every month for your policy. This periodical payment of money is termed as “Premium”. Insurances is of many types. You may insure life, health, home, vehicle or liability options.
Why is it important to insure?
You can never predict any mishap that is going to occur in the near future. But when such traumatic moments occur insurance comes to your aid. In case of an accident, insurance plays a vital role in covering the expenses for the damage occurred to both your health and your vehicle. Insurance also acts as a factor for the economy to run. Through the premiums paid by us the banks generate enough moving cash for business and industries to operate smoothly.
How does it work?
Works on three main processes
- Choosing a policy - you must decide on which entity to be insured, then choose a policy accordingly.
- Paying the premiums - you must pay the premiums periodically in order to avoid cancellation of your policy.
- Making a claim - At the time of emergency, anything that comes under your policy coverage can be availed.
On a serious note, Life is unpredictable.As rightly said by the writer here, insurances are our key to ensure the well-being of our loved ones who are completely or may be partially dependent on us.With such easy to follow system, insurances are the one thing everyone should look forward to.