Insurance is a contract (policy) in which an insurer indemnifies another against losses from specific contingencies or perils. Here are the main points about insurance:
- Types of Insurance Policies:
- Life Insurance: Provides financial protection for your survivors. It ensures that your loved ones receive a payout upon your passing.
- Health Insurance: Protects you from catastrophic medical bills resulting from serious accidents or illnesses.
- Long-Term Disability Insurance: Safeguards against unexpected loss of income due to disability.
- Auto Insurance: Prevents you from bearing the financial burden of expensive accidents on the road
- How Insurance Works:
- Personal Insurance Policies:
- Auto Insurance: Required by state law. Covers accidents and property damage.
- Health Insurance: Covers medical expenses and preventive care.
- Homeowners Insurance: Protects your home and belongings.
- Life Insurance: Ensures financial support for your beneficiaries.
- Business Insurance Policies:
- Tailored to specific risks faced by businesses.
- Examples include medical malpractice insurance, kidnap and ransom insurance, and identity theft insurance.
- Components of Insurance Policies:
- Premium: The monthly cost of the policy.
- Policy Limit: The maximum amount the insurer will pay.
- Deductible: The amount you pay out of pocket before insurance kicks in
- Personal Insurance Policies:
