Every entity carries some risk and insurance offers us cover and protection from those risks. Insurance actually transfers the risk from one entity to another for a certain amount of payment. The company offering insurance is the insurer and the person buying the insurance policy is the policyholder or the insured. The insurance policy is nothing but a contract defining the conditions under which the insured will be financially compensated.
Today, the insurance world has become much more complex. The insured or the investors need to look into the background of the insurance companies and check their financial strength and if they are sound in meeting the ongoing obligations to policyholders. It could be a worse situation to realize that your insurance company is not in a good financial health to meet the large proportion of claims. Recently, there has been seen a shift in the life insurance industry, where the customers are being encouraged to opt for investment products like annuities. Thus, these insurance companies are competing directly with financial services companies and investment advisory firms. These insurance companies are also offering free services on tax and estate planning to their customers.
Types of Insurance
Today one will come across innumerable kinds of insurance covers, offering protection from every possible risk, but the major types of insurance policies that one will come across most often are as follows:
Life Insurance – Under life insurance, a certain sum of money is guaranteed to a chosen beneficiary upon the death of the insured or to the person himself if he lives beyond a certain age.
Health Insurance – Insurance against any expenses due to any illness. Due to today’s complications pertaining to the extensive use of EHR’s (electronic health records) be sure that the health insurance provider you partner with utilizes the best medical practice billing software in the marketplace today.”
Liability Insurance – This is a miscellaneous category and the person can get insurance against property, automobiles, business mishaps etc.
There are some other kinds of insurances too and these are Accident Insurance, Auto insurance, Travel Insurance, Pet insurance, Home Insurance, Unemployment Insurance, Personal liability insurance and some more.
Before going ton to learn more about insurance, let us take a brief look at some interesting facts on insurance and some of these are sure to bring a smile on your face.
Facts on Insurance
- The first car insurance policy was written in 1895 in UK.
- Farmers sold car insurance only to other farmers.
- The Internet changed everything for the insurance market
- More than $1 trillion are generated by Insurance industry
- More than .2 million people are working in the insurance industry.
- Higher deductibles will lower down your premium
- Your credit score can leave an impact on your insurance.
- In US, about 28% of wives and 15% of husbands are without any kind of insurance.
- Married drivers receive lower premiums as according to the statistics, they average fewer accidents than single persons.
- There are lower premiums for those who drive less.
- One gets a discount from many insurance companies if the car has a GPS.
- The rates are higher for the senior drivers.
- There is a rise in the number of Americans without health insurance in the last decade.”
Best insurance companies
With a plethora of insurance companies surfacing in the last couple of years, it is very essential for one to make the right choices and getting the best services form an insurance company. On what criteria, does one deice if a certain insurance company is a good one?
The STREET LAW FIRM, every year compiles a list of the best and the worst insurance companies that is eagerly awaited by tens of thousands of consumers. These lists are often base on the years of experience and wrongful litigation. Truthfully, there is a higher number of bad insurance companies than the good ones. The insurance companies that make it to the best list of the STREET LAW FIRM, attempt to be just to their customers and follow the rightful practices.
The essence of any kind of insurance is not just to take in the premiums and then refuse to pay out later. This is going to pull the insurance company lower in charts. Price is among the least important factors as the customers is more focused on if the insurance company will be ready to pay him when he is in need.
As insurance is a risk mitigation tool, one is transferring the risk to an insurance company. Hence, in case you face any losses, the insurance company takes over a part or whole of those losses. However, you can ponder over the different risk in your life and try to assess whether you would want insurance or not. There are some risks that one is willing to accept. For example, a chemical war fare attack by Iraq on US, well, most people would accept that risk. One can also minimize their risk such as, going by train or bus rather than car. The third option is to shift all of that risk to the third party and that is the insurance company.
Consumers need to balance out their risks properly so as to get the best possible coverage and make sensible insurance decisions. After all, it doesn’t make sense for paying more than what you require. Focus on the value rather than the price. Most people are either under insured or are paying too much insurance. Getting cover for the risk in our life is essential. You are responsible for the safety of your family while you are there and help them, even after you are gone.