by Stephen Bradley
Managing loss: The main function of insurance is to give you peace of mind by limiting your chances of loss. The burden is carried by the insurer instead of the insured. A monthly installment called a premium is paid by the insured to the insurance company. In return. you will get a guarantee that the small loss suffered due to certain event occurrences will be limited and not lead to greater loss. Any object or event with a price tag or value to it can be insured.
Car insurance: Car insurance covers cars, trucks, buses etc. The main purpose of the insurance is to guard against possible losses incurable as result of road accident as well as liability arising out of an accident. The insurance can include cover for insured party, insured vehicle or third parties. Examples are theft, fire or accident damage insurance. Premiums are based on gender, marital status, age, car type and miles traveled. In terms of leased vehicles, insurance is an obligated.
Excess: Excess is a very common term in the insurance industry. An excess payment refers to a fixed amount payable every time your insured vehicle is repaired in terms of the insurance policy. Compulsory excess refers to minimum payment insurer wants from insured in event of claim. Voluntary excess is an offer by the insured to pay higher amount of excess to reduce insurance premium. Compulsory excess is the basic excess. Voluntary excess is added on the basic compulsory amount.
Home Insurance: Home insurance covers private homes. The insurance is a combination of personal and liability insurance protections covering accidents as well as losses that may occur in and around your home. A single homeowners insurance premium is paid to cover all risks. Your premium will be dependant or calculated on replacement value of the home. Additional items in or around the home can also be insured and included in the policy.
Cover limited: Some natural occurrences or consequences resulting from Acts of God are not covered by the policy. Keep in mind that separate or totally different insurance coverage will be necessary in these instances.
Life Assurance: Life Insurance covers risk events related to a persons life as well as health. The value of the insurance derives from the financial chaos resulting from the health or mortality event and not from the event itself. Premiums are payable either monthly or once-off lump sum. Benefits will be paid-out upon policy specified event happening usually large, once-off amount. Burial costs as well as specified bills due at time of event may be covered by the policy, if specified. Note that specific events and circumstances can nullify the policy, for example suicide.
Fixed Annuity: Annuities are a subset of life insurance. They can take the form of a fixed annuity like an indexed annuity, immediate annuity, or the like. They all specialize in saving or paying out.
Health Insurance: Health insurance is taken-out for the purpose of covering medical expenses such as doctors, medication or clinics. The insurance can be State provided or by commercial companies. Both individual or group coverage is available. It is extremely popular for companies to invest in group health insurance as benefit for employees. The policy can include disability as well as nursing. Premiums or taxes are paid monthly by members to get the benefits in return.
Limitations: Exclusions and limitations on Health insurance may apply. In these instances partial or full costs will have to be carried by the insured.
About the Author:
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