Monday, February 5, 2018

What is Insurance?

Insurance is a type of scheme which aims to protect individuals or property from financial losses. The most popular form of insurance is life insurance, which everyone is aware of. There are other types of insurance which protect properties, investments, and individuals when unexpected situations may occur.

A picture of insurance.
A picture of insurance.

Features of Insurance

Insurance pre-determines the amount one would lose in unexpected situations and prepares them for such situations. Some of the features of insurance are written in the below points:
  • Having insurance helps recover after an unexpected situation.
  • Insurance cannot help people during good times, within the insurance period.
  • Insurance requires a regular supply of money to be deposited with the insurance company.

Benefits of Insurance

Insurance helps people recover after experiencing from situations which they are insured against, using their insurance policy. Some of the benefits of insurance are written in the below points:
  • Insurance requires an appreciating premium of money.
  • Insurance provides a source of nearly limitless relief after a given situation.
  • Insurance is like investing in mutual funds, except it is without the risk, as you get it back when the policy ends.

Doubts of Insurance

Having insurance presents some doubts. Some of the doubts of insurance are written in the below points:
  • Insurance may only take care of some types of risks.
  • Life insurance only works after the death of an individual.
  • Insurance only helps after a situation has happened, while it doesn't help prevent it from happening.

Buying Insurance

Insurance can be purchased, subscribed, or financed from the nearest insurance company in your area. Be it cars, houses, people, or property, having insurance can provide you with money you need to recover after a natural calamity, accident or worse. There are different types of insurance available in the world today. Which types of insurance are you familiar with?

Related Links About Insurance

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