Thursday, 10 September 2015

What is Insurance? – All You Need to Know Before Buying Insurance

What is Insurance? 

Insurance is the key for businesses as well as individuals to make a proper financial planning. On the other hand, insurance will protects your money reducing the financial risks and ensures it to grow. Thus, overall we can say insurance as a financial well being of a business or an individual.

Insurance is known to be an agreement between the insurer and the owner of the policy. Here the insurer for a concern will agree for paying the amount of money up on death of the individual insured or other types of events and they include, severe illness, terminal illness or upon the maturity of the insurance policy, loss of income, damage to the individual’s property and many other events. Know that you came to know what is insurance, we will further move towards types of insurance and the way to apply for insurance.

Different Types of Insurance 

There are many types of insurance policies that an individual can take for different purposes. Here, we have listed out few such common types of insurance.
  1. Life Insurance
  2. Vehicle Insurance
  3. Personal Accident Insurance
  4. Home Insurance
  5. Medical and Health Insurance
  6. Crop Insurance
  7. Mortgage Insurance
  8. Workers Compensation
  9. Political Risk Insurance
  10. Travel Insurance
  11. Wedding Insurance
  12. Disability Overhead Insurance
  13. Aviation Insurance
  14. Earthquake Insurance
  15. Terrorism Insurance

These are the different types of common insurance policies that individuals or business people will take. Apart from these there are many other types which you can ask your insurance provider if needed.

How to Apply for Insurance Policy?

Are you ready to get insurance now? Then, it is necessary that you need to go through below steps before getting any type of insurance you want and these simple steps will help guide you and you a lot while getting insurance.

Step-1: At first you need to know the type of insurances available as stated above and determine which type of insurance you would like to get. You need to identify the insurance policy based on various factors such as income, age of the dependent, lifestyle needs and many other things. This may vary from one insurance policy to other. So, consider all the factors applicable for the insurance policy that you have chosen.

Step-2: The next step is to choose the insurance company. There are many insurance companies in the market today and the types of insurances as well as the rates of the insurance companies vary. So, consider some top rated and trusted insurance companies in the market which provide the insurance service you want. Compare them as per the rates they give the policy owner, calculate the premium that you need to pay on the basis of the insurance policy you have selected and many more.

Step-3: Once you have determined all the factors for the particular insurance policy you need, and selected the insurance company, apply for the insurance that reputed and professional insurance company and get the quote.

Step-4: Fill in all the details and submit the necessary documents. The information that you provide should be accurate and this determines the premium amount as well as cover level. So, fill the form and complete all the formalities properly with the agent that is provided by the insurance company to you. If you have any doubts you can talk to the agent and get them clear then and there itself as it is an insurance policy.

Step-5: Finally before signing up for the insurance, read all the terms and conditions clearly at the application give to you. Some insurance companies will not highlight the importance points. So, it is necessary that you need to read each and every part of the insurance terms and other details. Finally if you are agreed with all these, you can claim for the insurance and get it as soon as possible.

This is how you need to apply for the insurance policy. So, go through the steps thoroughly, apply for insurance, pay the premiums regularly as specified to you and avail all the benefits.