Insurance is nothing but a way of spreading out the significant financial risk of a person, property, or business entity to a group of individuals or business that can help with financial help in the occurrence of an unfortunate event or calamity that is predefined. It is basically a cover that can help the insured to gain adequate compensation for the damages incurred due to an accident or any mishap the conditions of which is preset at the time of buying this cover. That said, the insured has to pay a certain cost, on a monthly or annual basis, to the insurance company. In the purest form of insurance, if the predefined event does not occur until the period specified for the cover comes to an end, the money paid as the premium is not retrieved. Insurance is effectively a means of spreading risk among a pool of people who are insured and lighten their financial burden in the event of a shock.
Having the right kind of insurance is vital for a sound financial planning. Some of us may have some form of insurance just for the sake of having an insurance, or to evade income tax, or for the sole purpose that you have been told that having an insurance is a good idea, but only a few of us really understand what it is or why one must have it. For most Americans, insurance is only a form of investment or just a good enough tax saving avenue. If you ask any person about his/her investments, they will proudly say that their insurance policy is a crucial part of their core investments. Of the approximately 30% of Americans that are insured, the proportion of those adequately insured is much lower. Very few of the insured view insurance as purely that. There is perhaps no other financial product that has been so rampantly mis-sold by the agents who are over enthusiastic in selling products linking insurance to investment earning them fat commissions.
Any potential risk that can be quantified in terms of money can be insured. One can have an insurance policy also to protect their loved ones from one’s loss of income due to immature death. This type of insurance is called life insurance policy. Also, there is this Medical insurance policy that protects yourself and your family against unforeseen medical expenses. To protect your vehicle against robbery or damage in accidents you can have a motor insurance policy. To protect your home against theft, damage due to fire, flood and other perils you can choose a home insurance.
That said, the most popular forms of insurance in the US are life insurance, health insurance and probably, motor insurance. Also there are other forms of insurance that people can opt for. But those policies are not as popular as these three types are.
As mentioned earlier, life insurance policies provide cover against financial risk in the event of premature death of the insured. There are umpteen life insurance companies playing in this arena, both in the public and private sectors in the US. There are several forms of life insurance policies the simplest form of which is term plan. The other complex policies are endowment plan, whole life plan, money back plan, ULIPs and annuities.
All other insurance policies other than the life insurance policy fall under general insurance. The most common type of non-life insurance in terms of premiums underwritten is by motor insurance, followed by engineering insurance and health insurance. Other forms of insurance covers offered by insurance companies in the US include but not limited to, home insurance, travel insurance, personal injury insurance, and business insurance.
Getting adequate insurance for yourself and your family is a must, and an easy one too. One can have the privilege of getting insurance policies both online and offline. If you are not quite familiar with the concept of insurance, we recommend that you try the offline way. Discussing your situation and your needs with an insurance broker or your insurance company will give you the upper-hand of having all your doubts and questions cleared and answered- you will be able to find the best type of insurance to suit your needs this ways. On this flip side, if the world of insurance is nothing new to you and you know a few things about insurance, the quickest and the cheapest way to get one is to apply it online. There are hundreds of insurance quotes that you will be able to find online. All you have to do is to make you selection as per your needs.
Define Insurance Premium is an interactive blog that answers all your questions about insurance. Whether you are a first time insurance buyer or looking to find a better insurance policy for your needs, this blog has all the information that you will require to go ahead with your insurance policy purchase. The website covers all sorts of articles on questions that you can have about insurance policies, both in general and in specific, and you can expect to find only educative and helpful information here. Define Insurance Premium is your best bet if you are trying to find insurance information online!
“As an athlete, I understood the value of my health insurance. I knew that in my profession, injuries were common and could happen at any time.”
– Magic Johnson, retired professional basketball player, who played for the L.A. Lakers.