First thing one need to understand is, what is insurance and how does it work. Insurance is a way of managing risks. It is an arrangement by which a company or an entity undertakes to provide a compensation for specified loss, damage, illness, or death in return for payment of a specified premium. In general terms, Insurance is a means of protection from financial loss. It is basically a contract in which an individual receives financial protection or reimbursement against losses suffered from an insurance company.
The entity which provides insurance is known as insurer, insurance company, insurance carrier or underwriter. And the person or entity who buys insurance is known as an insured or as a policyholder. The contract received by the insured is called insurance policy and it has all the details and terms & conditions. The amount of money charged by the insurer from the insured for the coverage set forth in the insurance policy is called the premium. If the insured suffers a loss which is covered by the insurance policy then after submitting a claim the insured gets proper compensation.
The agent of insurance companies provides you with full information about the insurance policy you are buying hence allowing you to choose the best one for you. There are online services also which lets you compare different policies provided by different insurance policies.
Here on www.generalinsurance.com different types of insurance are available for you to compare and choose the best fitting for you.
There are many types of insurance provided by different insurance companies:
- Vehicle or Auto insurance: Auto insurance protects the policyholder against financial loss in the event of an incident involving a vehicle they own, such as in a traffic collision. The coverage generally includes;
- Property coverage in the event of damage to or theft of the vehicle.
- Liability coverage, for the legal responsibility to the others in case of property damage and bodily injuries.
- Medical coverage, for the cost of treating injuries, rehabilitation, and lost wages & funeral expenses in some cases.
A number of insurance companies are there which provide the policyholder with best services in case of above mentioned incidents. Some companies also provide the policy holder with no down payment Auto insurance allowing you to just sign the agreement and start paying for the premium later.
- Health insurance: Health insurance covers the whole or a part of the risk of a person incurring medical expenses, spreading the risk over a large number of persons. It covers the cost of medical treatments.
- Life insurance: Life insurance provides a monetary benefit to a decedent’s family or other designated beneficiary, and may specifically provide for income to an insured person’s family, burial, funeral and other final expenses. Life insurance policies often allow the option of having the proceeds paid to the beneficiary either in a lump sum cash payment or an annuity.
- Property insurance: Property insurance provides protection against the risks to property such as fire, theft or weather damage. This may include specialized forms of insurance such as fire insurance, flood insurance, earthquake insurance, home insurance or boiler insurance, the term property insurance is used for a broad category of various subtypes of insurance. Some of them are:
- Aviation insurance
- Boiler insurance
- Earthquake insurance
- Crop insurance
- Flood insurance
- Home insurance
- Liability insurance: Liability insurance is a very broad term that covers legal claims against the insured. Many types of insurance include some aspects of liability coverage. The protection offered by a liability insurance policy is twofold: a legal defense in the event of a lawsuit commenced against the policyholder and payment on behalf of the insured with respect to a settlement or court verdict. Liability policies typically cover only the negligence of the insured, and will not apply to results of intentional acts by the insured.