Insurance is a risk management which covers you & your family against potential risks or any financial losses. In other words Insurance is a form of protection net which helps you from travel accidents, property destruction & natural calamities like fire mishaps, flood, earthquake & etc.
Why do you need Insurance?
Everybody wants to stay healthy and live happy. Every individual on earth is not certain of their own lives. We cannot prevent accidents but we can minimize the chances of an accident or a medical emergency. If you have a family then it is your responsibility to protect them from possible emergencies & natural disasters. The best way is to insure your self and every thing that can not be replaced in your lifetime.
To take an Insurance policy you need to pay a fixed amount monthly or annually to the Insurance which is called as Premium. You become the policyholder and the insurance company becomes the payer or carrier. In other words insurance is a contract between you (insured) & the Insurance company (payer). You secure your future by paying regular premiums & the payer assures you and your family security. Your insurance plan expires once you stop paying premiums. Once you are enrolled in to an Insurance plan, you will be given with an identification card which contains the Policy ID#. Depending on you premium you will get Insurance coverage’s. Insurance are of many types they are:
- Health Insurance
- Life Insurance
- Auto Insurance
- Liability Insurance
- Property Insurance
Posted by
sushmita Date:
Thursday, September 10, 2009
Categories:
Insurance
Tags:
Insurance coverages, payer, Policy ID#, policyholder, Premium
The health care costs very high. Because of this most people cover their health care risk. Health Insurance is again of 2 types:
Medical Insurance: Medical insurance reduces the risk of being unable to pay future medical expenses. Health Insurance also covers your parents, wife & children as covered members. Many companies provide its employees & their family with Health coverage’s. Plan coverage’s are the services done in a hospital & which are planned per insured-payer contract. For example: If in a contract maternity services are not covered then Insurance would not pay for those expenses. There are many plans which only cover services in network hospitals. Services performed outside the network hospitals will be considered as non-covered. Less Premium amount will give you less coverage, while more premium amount will provide more coverage’s. All the insured’s will be provided with a benefits contract which provides information on covered services, non covered services & patient responsibility. For example: Covered services can be hospitalization, Non covered services can be out patient services or cosmetic surgery & patient responsibility will be 20% of the total bill. Medical Insurance also covers medical expenses while traveling.
Dental Insurance: Dental insurance covers all the dental expenses for which the insured has to pay a monthly or annual premium. Dental coverage may differ from one policy to another. Mainly dental Insurance is done by most of the employers for their employees. This is again called as group dental insurance. The insured employee submits the bill to his employer & the employer claims it to the payer.
Life Insurances Companies
Life insurance covers sudden death of Insured. It gives financial support to the family in financial crisis. It also provides the burial and other final expenses as well. For example: If a person who brings majority of the income, dies his/her beneficiary will get cash benefit from the payer free of income tax. These cash benefits contain college education for children & spouse’s retirement needs. Life insurance is again of 2 types.
Permanent Life insurance: It is also called as Whole Life Insurance. It covers the total life of the insured person. Mainly it protects your dependents, when you die. Generally in permanent insurance the premiums don’t change.
Termed Life Insurance: This provides coverage for a specified period. If the insured dies between the policies then his/her beneficiary will get the cash benefits. And if the insured ides after policy expiration. Then his/her beneficiary won’t get any cash benefits. The insured can renew his policy after a specified period. The premiums generally increases as you grow older.
Insurance Companies
: External Links
www.lifeinsuranceadvisor.com
www.nationalinsuranceindia.com
Auto insurance covers your car, truck, motorcycle & other vehicles from traffic accidents and other road mishaps. Again there are different types of auto policies. The more the premium, the more benefits you get. Few polices only covers you and your families bodily injury during an accident. Few also cover the other driver’s bodily injury & the damage to his car. There is a policy with property damage coverage, which covers the damage caused to the building, fences, gate, garages of the other person due to an accident.
Here the insurance company investigates the accident. If you are found fault then your insurance company pays you to repair your car. If the other person is found fault then your insurance company will try to recover the total amt from the other driver’s insurance company and pay back to you.
Posted by
sushmita Date:
Thursday, September 10, 2009
Categories:
Insurance
Tags:
accident, automobile, property damage coverage
Liability insurance protects you from uncertain accidents where the other party losses. Liability insurance won’t cover your medical expenses but the other person medical expenses for which he can sue you. For example: If you had a car accident, then your medical expenses will be covered by your medical insurance. Your damaged car will be covered by the Auto insurance & the other party’s medical expenses will be covered by Liability Insurance. Your liability insurance will also protect you from uncertain injuries of your friends or neighbors at your place. This also applies to shopkeepers, Hoteliers, employers & etc. Liability insurance is mainly of 3 types.
Workers compensation Insurance: It is an Insurance which every employer gets for his employees. Workers comp covers employees medical expenses, related to work related injuries. This protects the employer in case of any work related injury where the employee might sue the company. For example: If an employee has broken his leg while working, then his medical expenses will be taken care by the Workers comp insurance. The employee need not pay any thing because his employer already has a Workers comp policy. All the medical bills will be paid by the Workers comp payer.
Public liability Insurance: If the insured damages any public property, Public liability covers & pays the damage. For example: If a builder accidentally damages a part of a building. Than his public liability insurance covers such damages.
Product liability Insurance: It gives protection to the manufacturers. It covers the damage or injury, due to their product. For example” If a microwave or any other electronic good causes burn or results into a short circuit. In such case the third party (generally the customer) might sue the company. To escape such situation manufacturing companies purchase Product liability insurance & pays annual premiums. The manufacturing company claims to their Product liability insurance which pays the total bill.