Free Online Tutorial: Insurance-Guidline

Explanation

Explanation of insurance? Insurance can be define as:

A contract between a person and an insurance company.

Explantion of Insurance

This contract include an agreement that the insurance company will cover some portion of an individual loss as long as the person meets certain conditions mention in the insurance contract. The individual or policyholder pays a premium to obtain insurance coverage. If the person experiences a loss covered by insurance, such as an accident to the car or a house damage, the individual files a claim for reimbursement with the insurance company. The individual will pay a deductible to cover part of the loss, and the insurance company will pay the rest.

Example

Let’s take an example, consider you have a homeowners insurance policy. You pay 1,500 Dollar per year in premiums for a policy with a face value of 300,000 Dollar, this value is what the insurance company take an estimates it would cost to completely to rebuild your home or house in the event of a total loss.

Unfortunately 1 day as has happened to too many people in recent years, a huge wildfire surround your neighborhood including your house burns to the ground. After the event you file a claim for 300,000 Dollar with your insurance company. The company approves the claim. You pay your 1,500 Dollar deductible, and the insurance company covers the remaining 298,500 Dollar of your loss. You then take that money from insurance company and use it to hire contractors to rebuild your own house.

When you buy an insurance policy, you are common your loss risk with the loss risk of everyone else who has purchased insurance from the same insurance company. If you for some reasong buy homeowners insurance from the State Farm, which sells too many more homeowners insurance policies than any of its competitors, then you are actually joining forces with millions of other homeowners to collectively protect each other against any kind of loss. Each homeowner pays annual premiums.

List of things you should Insure

This is the list of things you need to Insure. Insurance give an opportunity for financial protection against a wide variety of losses:

apartment burglaries
medical payments to occupants injured in a car accident
help with basic activities of daily living
long-term disability
house fires
death of someone (caretaking support)
emergency room visits
surgery
a lawsuit brought by a visitor who slips and falls on your icy front porch
auto body damage from a car accident
and many more.

When you insure the right thing in the right amounts, you will be protected from potentially devastating losses that could send your life veering off course and devastate your finances.

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Imran Khan

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Introduction to Insurance

1- Introduction to Insurance ▐ 2- What is Insurance ▐ 3- Basics of Insurance ▐ 4- Casualty and Property Insurance ▐ 5- Disability Insurance

Introduction

If you wanna drive any kind of vehicle or you are going to take out a mortgage to buy a property, you will be required to buy insurance. Insurance is like a mother who protects both you and others from calamity and makes it possible to take risks that would otherwise be good. Lenders could not afford thousands of dollars to buy a home if they knew that if the home burned down, we would simply run away and stop paying our mortgage because only few of us would have the savings to rebuild our homes. For example car accident without insurance would potentially leave the drivers of all the involved vehicles without a way to get back to work and with no balance to pay for treatment as well.

Insurance also give us a ray of hope as it keeps us alive and healthy by making health care more affordable, it gives us a means to provide for our loved ones after our death, and lets us keep drawing an income even if we cannot work for weeks, months or years due to illness or injuries.

While most of the people buy the insurance they are required to, but they don’t always buy the optional insurance that could make them financially more secure and alleviate some of our anxiety about the bad luck that might befall us. What’s more, very few of us have a good understanding of how our insurance policies actually work. And we should, because we pay a lot for them

We pay around $1,000 per year for homeowners insurance and round about $900 a year for vehicle insurance

Instead of this, we cannot take full advantage of our policies’ benefits or make the best choices about how much coverage to purchase because of no or less knowledge of insurance.

To get full advantage of Insurance this short tutorial will get you up to speed on the basics of insurance that how all insurance works, and the most common types of insurance that an individuals can buy: homeowners and health insurance, renters insurance, disability insurance, long-term care insurance, life insurance and a few other types of insurance. So stay tune.

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The Author

Imran Khan

If you've found this article helpful or interesting and think others would benefit from reading it, please share! Thanks alot for reading it!

Explanation of insurance?

Introduction to Insurance

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