What is Insurance Before we get started, we first need to know how it works and why people should know these things.
Insurance is a means of protecting people’s lives and property from various uncertain risks and accidents. Anyone can purchase risk management insurance to mitigate natural and man-made risks in their personal lives, businesses and the financial sector. In general, insurance varies by type of company and organization, but you can purchase insurance to reduce damage from accidents such as fire, marine, flood, and motorcycle accidents. You can also purchase insurance for personal and social security.
In an insurance or insurance contract, there are two parties, the insurer and her insurer. In this case, the parties agree that while the policyholder pays the specified premium, the loss will be covered by the insurance company for any of the reasons stated in the policy. You can choose between a lump sum payment and a fixed amount payment.
You can take out insurance to cover industry, machinery, furniture, raw materials, products, fire, flood, theft, etc. for industrial use. Marine insurance can also be purchased when importing and exporting raw materials and finished products. It is important to have property insurance in case the property is secured as an intermediary for bank loans. Therefore, having knowledge of business insurance is very important.
There are over 6,000 insurance companies registered in the United States. To manage the insurance policy, the entrepreneur or policyholder can contact any company with the desired options. In many cases, insurance company representatives will contact the insurance company on their own initiative.
The advantage is that the insurance company is obliged to compensate him in the event of an industrial or natural disaster. Once this damage is done, the entrepreneur can turn back. Get your business back on track with new initiatives. The company is unlikely to go bankrupt.
What is life insurance?
Life insurance is a contract in which a fixed premium is paid, and in exchange for the premium, the insured person pays compensation in the event that the other party saves or dies. It’s a payment system. Considering the needs of bidders, companies offer different types of services. The borrower reserves the right to deliver according to the contract. The insurer’s responsibility is to provide services to the beneficiary in accordance with the contract.
Life insurance is not a general product. There are many misconceptions about life insurance policies that are common among people.
1. You don’t need to buy life insurance. Statement is not true. The main truth of life is death. When a man who earns the income of his entire family finds his family in darkness when his husband dies prematurely, he wants to stop the cycle of life. In the long term, it makes it difficult for the children to live a normal life and causes problems in their upbringing, treatment and marriage. In life insurance, a single person hires one or more nominees to provide needed coverage after the nominee’s death. Therefore, purchasing a life insurance letter may not cover a person’s deficiencies, but it may be possible to overcome some financial problems.
2. Insurance companies are less profitable than banks:
If money is not deposited by the insurance policy, the money will be returned to the account holder or his agent by depositing a certain amount with the money deposited in the bank or another name. But life doesn’t take risks. Comparing life insurance and bank profits is not always accurate. Because they have different purposes. Banks only hold deposits and life insurance companies deal with issues related to financial risk.
3. Borrowing life insurance policies is subject to the following losses:
Investing in the purchase of life insurance. No Waste of Money Purchasing a policy will result in insurance claims from bribery companies. With this insurance, beneficiaries can deal with temporary financial problems, develop a job, and relieve themselves and their families of financial worries. 4. I have plenty of resources, so I don’t need an insurance policy.
A lot of wealth creates a lot of time. It should be noted that total liabilities (current and long-term liabilities) are less or less than total assets. If your total liability is higher, you can make up the shortfall by purchasing comparable insurance. Life insurance is a long-term investment. Some of the returns from this investment are measurable in monetary terms, while the rest are not.
5. You don’t need life insurance in your life:
Danger to life is just danger. Risks exist or may arise in the future. Because we don’t know the future. So even if you have a lonely life insurance, you should buy life.
Now i think you all understand about insurance policy . I think its now clear that What is insurance & what is the benefit ? Thank you !