Insurance: Understanding basic details and coverage
Life is full of surprises, some of which are happy and some of which bring us no appetite, and we are all exposed to the same risks or difficult circumstances. Undoubtedly, human beings are prone to accidents, and each incident has material losses, whether the costs of treatment, repair of the car, or purchasing alternatives to lost or damaged objects. Resulting from the incident, but we want to avoid it even if it costs us to pay money for it. Since an accident is prevalent, you can compensate for the damages resulting from that place, hence the idea of insurance.
What is the concept of insurance?
The principle underlying the insurance activity is very simple, as it involves a group of individuals paying monthly or annually to insurers to compensate for damages caused in the event of an accident or other risk to one or more of these individuals. This company is called the "insurance company" and the customer is also called the "insured" or "policyholder", while the contract is called the "insurance policy" and the fees paid by the policyholder are called the "premium".
Insurance is only a result-specific agreement, as the people involved in the insurance solutions are fully confident that the amounts they pay in the form of premiums will compensate them for the damage of unexpected accidents, which provides them with peace of mind and confidence to continue their investment projects, enjoy travel and trips, as well as implement long-term plans such as buying a new home, etc.
For the insurance company, the accident rate and cost can be accurately calculated due to the large size of the customer base. The method of calculating these costs is called the actuarial flag (or insurance accounts), which ensures the insurance company that the fees charged to the client are consistent with the volume of the losses and the rate of their occurrence.
types of insurance
The idea of preparedness for unforeseen expenses is normal and has arisen since the old Babylon, and the types of insurance coverage have varied to include countless types of risks, including property insurance against fires, theft, weather disturbances, or earthquakes. Types of insurance also include business interruption insurance that protects businesses from all risks that may lead to temporary closure and thus business interruption. In addition, there are life insurance plans where the policyholder's family gets the insurance value upon his death, and there is also health insurance to cover medical expenses.
Another form of insurance that represents a large segment is liability insurance, which is an insurance program against damages caused by the insured to another party. For example, car insurance is not limited to repair expenses but includes damage and losses caused by the vehicle during the accident. The purpose of liability insurance is to protect companies of various kinds and individuals from material or legal costs as a result of their mistakes.
There are also different types of insurance in specific areas, including maritime, financial, construction, sports, entertainment, etc., which have reached the establishment of insurance sector insurers, which are called reinsurance companies.
How to get an insurance service?
There is one way to obtain any insurance service despite its varying types, whereby any person or company seeking insurance fills out the application for the service, which allows the insurer to assess the risks associated with the applicant. For example, a smoker repays health insurance premiums in higher proportions than a non-smoker, and free skydiving enthusiasts pay more than natural people in the event of a life insurance application.
The insured person will receive a contract, or insurance policy, which includes the conditions under which he/she will receive compensation. In the event of any accident or loss, he/she will submit a claim to the insurance company, for the compensation officer to assess the value of the losses and ensure that they are included in the insurance policy.
Do you need insurance?
Of course, few of us have enough money to cover potential risks and accidents in our lives, and even if we can, the best in terms to rationalize costs is to pay in monthly installments. Here are the main reasons why you get insurance services:
1 Keep you and your family healthy
Getting good health care is notoriously expensive and can sometimes cause you to spend your savings in full, so getting a health insurance service will regulate your family's health care expenses in regular payments.
In addition, it will allow you to perform annual medical examinations and contribute to the prices of your daily medications. If you contract with a trusted insurance company you will get superior quality healthcare services from an extensive network of the best doctors and hospitals across the country.
2 Maintain your family's lifestyle
We always focus on meeting our families' daily financial needs, but it is necessary to further shed their financial future, So you need to get an insurance service because it keeps you and your family the lifestyle you want as well as the necessary protection against any material disability as a result of emergency events such as stoppages or provide alternative income in case of physical disability, injury or death.
3 Protect your property
It is essential to provide the necessary protection for your most valuable and important property, such as your car, home, or premises of your company. Therefore, property insurance will cover the cost of repairing or renovating such property and others in the event of theft, fire, or any other accident. Insurance can also pay for repairs and maintenance.
4 Investment in the Future
If you love planning, you are considering securing your future needs, such as earning a dependable income after your successful career ends, and if you are a head of household, you will certainly want to secure your children's future needs such as university expenses or marriage.
You can secure the financial future for you or your family by investing in insurance companies. They are one of the world's largest and safest investment institutions, due to the huge amounts you invest for the benefit of customers. Insurance companies give you many safe ways to invest in the future through long-term programs such as life insurance or retirement savings, where subscribers receive an annual return from investing in the insurance premiums they pay.
When deciding to subscribe to an insurance plan, you must choose one of the trusted insurance companies with a wide network of branches to facilitate the fulfillment of your needs from anywhere in the Republic, whether when making a claim or making your payments.