Insurance in short terms is a protection from loss financially. The basics of insurance include the insurer and the insured, the insurer sells the insurance cover while the insured buys the insurance cover. An agreement between these two parties that the insured will pay the insurer some agreed amount of money for a period of time and the insurer then will compensate him if any unexpected calamity occurs that leads to loss financially.
Sports insurance, car insurance, caravan insurance, boat insurance and travel insurance are some of the basic types of insurance that we have around. The rising cost of living has made it necessary for people to take up insurance for fear of loss of whatever they have built up.
An individual’s personal residence is covered by a type of insurance known as home insurance or more often referred to as homeowners insurance. Some of the things a home insurance covers include the house itself, the contents of the house and losses resulting from earthquakes, floods or any other known disaster. Many people work very hard to support their families and the knowledge that whatever calamity comes along, their family members will always have a home makes these individuals feel at peace.
Life insurance in short terms refers to the agreement that the assurer will give a chosen beneficiary a certain amount of money if the assured agrees to pay regular amounts of money to the assurer. Life insurances are very important as beneficiaries who maybe the children of the assured are positive that their future is well taken care of. The policy can be also used as a security hence enabling the assured to take loans to do other businesses that may profit him.
Last of all, auto insurance also called vehicle, car or motor insurance is the insurance cover for road vehicles like cars, buses, trucks and motorcycles. Motor insurance covers physical damage that may be caused by traffic collisions to passengers or pedestrians or any harm caused after in terms of finances. Car insurance may also offer more financial protection when physical damage occurs during theft after an accident.
To protect themselves against all kinds of disasters and calamities present, awareness should be created about the excellent services insurance provides to its users. There are some special cases whereby the assurance policy is altered in that instead of waiting till the assured dies, payment is made to him after some agreed time, this can be seen as a saving tool. Insuring your properties is the best way to protect them.