Insurance is basically a way of protection against financial loss. It’s a form of asset management, mostly utilized to mitigate the risk of an uncertain or non-recovered future expense. It basically deals with insurance policies that are designed to reimburse you for expenses that happen as a result of acts of God, war, terrorism, flood, hurricane, and other similar events. As you can see, insurance can be very complex and confusing, so below are some basic pieces of information that will help you understand insurance more easily.
The first piece of information that you should have at your fingertips is the named insurer of the insured. This will usually be the same as the insured’s name in his/her birth certificate, driver’s license, or social security card. A business owner, for instance, can have several insurers, each of which may own a portion of the business or have different policies. This is important because different insurers have different policies on which the insured can choose to purchase a policy from.
Another piece of information that you should know at the outset is the insurance policy limit. This is the maximum amount of money that the insurer will pay for a given claim. Liability insurance is divided into two types: bodily injury and property damage. Bodily injury insurance protects the insured against personal injuries that may occur while on the premises of the insured. Property damage insurance protects the insured against damage due to natural disasters or vandalism. If one of these policies is violated, then the insured may be liable to the other party for all damages.
Then, there is the insurance coverage that the insured has chosen. It could be general insurance, which covers all types of risks, or marine perils, which has some specialized aspects such as cruise ship accidents. If the insured chooses to buy marine perils insurance, then he/she has to be aware of the particular aspects included in the policy like when it comes to travel aboard a cruise ship, what things are included in the coverage, and what are the limits of the policy.
The insured also needs to know how much he/she will be paying for insurances. Most general insurances are based on the average lifespan of an individual. Life insurance on the other hand is based on a number of factors including age, health, family background, gender, and health history. In life insurance, the insurer considers the probability of the insured dying during a certain time frame. These factors are also considered when computing for the premium amount of the policy.
Lastly, the insured needs to be able to find the right insurer for his/her marine perils and life insurance needs. The Internet can be a useful source in this regard. It provides information on various providers by making use of comparison tools. You can also read up user reviews and feedback about the companies from web sites dedicated to the matter. These independent reviews provide insights on both good and bad insurers.