Insurance can be described as any form of protection from financial losses. For insurance to work the insurer and insured must be present, the crucial work done by the insurer is to sell the insurance cover while the insured has to buy that insurance cover. The insurer and the insured must come to terms that the insurer will compensate the insured if he undergoes financial loss due to some unforeseen calamity if he, the insured agrees to pay some agreed amount of money for some agreed amount of time.
Commonly, car insurance, personal item insurance, landlord and renters insurance, boat insurance and home insurance are what we find offered. As times are hard due to the unpredictable change of the economy, insurance is a must do on the list of a lot of people.
An individual’s personal residence is covered by a type of insurance known as home insurance or more often referred to as homeowners insurance. Most importantly, the homeowners insurance policy covers the home itself, all its contents plus all losses that may result as a consequence of a disaster such as floods or earthquakes. 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.
On the other hand, life insurance refers to the contract taken between the assurer and the assured that the assurer will pay a selected beneficiary a sum of money if the assured keeps making regular payments to the assurer. In the situation that the beneficiaries are the children of the assured, then the assured will have a piece of mind as his children’s future is well secured. In addition, the policy may be used as collateral in acquiring huge loans for purposes that the assured deems important enough.
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. The basic use of this type of insurance is to provide protection in financial terms against any physical damage resulting from traffic collisions. 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. Insurance could also be used as a saving tool in the sense that the assured may agree with the assurer that he will receive cash after sometime after payment of premiums instead of the premiums being paid out after his death. Insuring your properties is the best way to protect them.