The entire natural cycle is in turmoil today, earthquakes and floods are becoming too common, water reserves are falling and the animals are becoming homeless due to an unshakable population. Nature’s balance changes due to disturbances such as cloud formation, etc. Life is uncertain and there is a need to take out insurance to recover from premature death, loss, destruction, damage, etc. So what is insurance?
Insurance is nothing more than protection that protects against all risks and uncertainties. The main component is to share the risk. It can be referred to as a contract, in which a fixed amount is paid so that the insurer can help the insured to recover from the damage and the consequences of the damage or danger in the event of damage or danger.
The institution that contributes to this understanding is called the insurance company. Anyone wishing to take out insurance is referred to as insured. The written contract between the two parties is called the policy.
After a brief look at insurance, let’s take a look at the different types that exist.
Life insurance – The amount is paid under this cover only after the insured’s death or after the policy has expired, whichever comes first. However, this is not a compensation guarantee because the loss of life cannot be compensated and a certain amount of money can still be paid.
Fire insurance – This type of protection protects against all types of damage caused by a fire. It is an exemption contract in which the insurance companies pay the damage incurred. As a rule, this insurance cover is only valid for one year, after which it must be renewed. There are only two things to keep in mind to claim this and they are:
• There should be a real loss
• The fire should be caused accidentally and not intentionally.
Transport Insurance – This type is one of the oldest and covers all losses related to ocean exploration. In this case, the insurer pays the owner of a ship or a cargo a partial or total loss. This, in turn, is an indemnity contract in which the insured person can get back the actual amount insured, subject to the maximum limit for which he is insured.
After studying the different types, let us recognize their importance, which leads to a secure future.
• Due to insurance, international trade has started to peak as marine insurance covers all kinds of risks associated with the sea.
• Today, life insurance policies are available in many forms and can be used to meet your own social obligations, for educational loans or for marriage loans, etc.
• Large amounts of money are accumulated through the premiums paid by the “insured”, which is important for both the capital base and the economic development of a country.
• The insurance not only offers protection, but is also a good investment, as the premium is paid from time to time and the lump sum is paid to the insured after the term has expired.
Therefore, getting insurance and protecting yourself from the horror of any loss or damage that can be emotional or financial is always a wise move. Let’s save today for a blooming tomorrow.
Source by Aman Tumukur Khanna