What Is Insurance and How Beneficial It Is?


Insurance is a process where money in pooled from insured people and then it is paid to the insured person if he incurs any loss. This is a form of protection from all risk that a man faces in his life. They just need to keep paying a fee for the amount they need as insurance when they face any risk. There are great rules and regulations that one needs to understand before applying for insurance. But this is a wise method to be followed by people to live a life of less stress and fears.

Various forms of insurance

Various companies are in the market both public and private companies. You just need to give a call to the company of your choice, they will send their agents to your place to give you the details of the policy you need. You will just need to fill in the forms and give your photographs to them, all the other process will be done by the agents for your sake. Later they will inform you the duration time period and amount that you have to keep paying for the insurance to continue every year. Basic insurance that almost every person would prefer to take is the

  • Vehicle Insurance,
  • Home Insurance,
  • Health Insurance,
  • Business Insurance,
  • Life Insurance,
  • Travel Insurance,
  • and Property Insurance.

There are even some other types of insurance like auto insurance, gap insurance, income protections insurance, casualty insurance, burial insurance, property insurance, liability insurance and credit insurance. Every country has its own types of insurance coverage. There are many more types of insurance that cover some minor risks and perils.

Types of insurance companies

In general there are two types of insurance company’s life insurance and non life insurance companies. Life insurance companies provide coverage that will last for long period for many decades. Non life insurance coverage if for short period and can also last for 1 year. It depends on the person’s choice who would like to take up the insurance.

In general most of the working people have their insurance coverage done by the company they work for. They pay the fee from their salary to the company they work. Coverage of some form is made compulsory by the employee itself. Even then few take up private policies which will help them in major risks.

Vehicle insurance is a must for all the people who own a vehicle; it is a rule that you drive your vehicle only after insuring the vehicle. All types of insurance is just like a safe cover which will guard when are in to risks. The insurance companies will not just give you the money in case of any loss. They have great rules to be followed, they inquire in all the routs about the loss and only if all the rules and regulations are complete they will provide the insurance money. Every company and every country vary in the methodology they use to cover the risks. But Insurance has helped many lives and business when some calamities take place.

Source: ADOJ