The entire cycle of nature today is being depleted with increasingly common earthquakes and floods, water supplies are dwindling, and animals are being made homeless due to a constant population. The balance of nature is being disturbed due to interferences such as cloud seeding, etc. Life is uncertain and insurance is necessary to recover from premature death, loss, destruction, damage, etc. So what is insurance?
Insurance is nothing more than coverage that protects one against all kinds of risks and insecurities. The main component of it is risk sharing. It can be called a contract where a stipulated amount is paid so that the insurer can help the insured to recover from the loss and consequences of damage or risk, in case of any eventuality.
The establishment that helps you gain this knowledge is called an insurance company. Any individual who wishes to obtain insurance is known as an insured / insured. The written contract between the two parties is known as the Policy.
After briefly learning about insurance, let’s take a look at the different types out there.
Types
Life insurance: the amount is paid under this coverage only after the death of the insured or when the policy expires, whichever occurs first. However, this is not an indemnity bond since the loss of life cannot be compensated, but a certain sum of money can be paid.
Fire Insurance: This type of coverage protects against all types of damages that result from a fire. It is considered an indemnity contract through which the insurance companies settle the loss that occurs. Generally, this coverage is only valid for one year, after which it must be renewed. One needs to take into account only two aspects to claim this and they are:
• There should be a genuine loss
• The fire must be by accident and not intentionally.
Marine insurance: this type is one of the oldest and covers all losses related to marine exploration. In this type, the insurer pays the partial or total loss to the owner of a ship or cargo. This again is an indemnity contract where the insured can recover the actual amount of coverage subject to the maximum limit for which they are insured.
After studying the various types, let’s see their importance leading to a safe tomorrow.
Importance
• Due to insurance, international trade has started to hit peaks as maritime insurance covers all kinds of risks related to the sea.
• Today, life insurance policies are available in many forms and can be used to meet social obligations, educational loans or marriage loans, and so on.
• Large funds are accumulated with the help of the premium paid by the “insured” and that helps as a significant factor for the founding of capital as well as for the economic development of a country.
• Insurance not only guarantees protection, but is also an excellent form of investment, as the premium is paid from time to time and after maturity the lump sum is given to the insured.
Therefore, it is always a smart step to make sure and avoid the horror of any loss or damage that may be emotional or financial. Let’s save today for a prosperous tomorrow.
