Insurance is not the name of any financial benefit, but
it is the name of a kind of satisfaction you get in case of any loss. You
must keep some money every year in any institution or company that will
protect you from any loss. Many government and non-government organizations
offer these policies.
What is insurance?
The word insurance is derived from the word
insure which means satisfaction or comfort. And suppose you look at its meaning in detail. In that case, Insure means arranging for compensation in the event of
damage or loss of property or injury to or the death of somebody or securing or
protecting someone against a possible contingency.
In the same way, the word insurance means practice
or arrangement by which a company or government agency provides a guarantee of
compensation for specified loss, damage, illness, or death in return for
payment of a premium. We can also say that the word insurance is a thing
protecting against a possible eventuality.
Life Insurance |
Insurance is a kind of security and satisfaction of
having something to live a better life. , when you are worried about the future
of yourself or your loved ones and in that concern, you take some protective
measures to help you to some extent in any unpleasant situation, then
this is called insurance.
You can get
many types of Insurance like, vehicle, property, and life insurance. If you
have your property or your car insured, in case of any damage to them, the
government cooperates with you in covering that damage. In life insurance, in
case of the death of an applier, a handsome amount of money is given to the
nominee of the person.
The insurance companies provide enough money for the
insured's family to live comfortably for the next five to ten years. Government
and private organizations provide insurance policies so that their employees
can get some financial benefits.
General Insurance
This is the contract that offers and provides compensation to the insured people for the loss of anything like, loss of money, house, property, car, motorcycle, health, etc. becomes entitled to a premium.
General Insurance |
It is the amount that the person (insured) pays to the
company or the government who is taking the insurance offer and he pays this
amount every month or annuity. Insured one does this to get a kind of protection
coverage for his family in case of any risk. Risk of loss of life, money,
property, or vehicle.
Annuity
It is a fixed sum
of money paid to someone each year, typically for the rest of their life.
It is the amount that a company or government agency pays
to who is insured or to the person who has taken out the insurance. Agency or
company may give it monthly or yearly, it is depending on the policy of the
institution. In which application is made.
Declaration
Declaration |
A declaration in Insurance policies is a form or a paper
that contains all the information about the insurance policy and the
policyholder such as his name, full address, age, vehicle details, type of
coverage he is going to take, etc. Enrollment is mandatory in all Insurance
companies.
Insured and Insurer
An Insured is a person who insures himself, his property,
a vehicle, etc. in a company or agency. That means he who is taking insurance
benefits and who enrolls himself in an Insurance policy of any organization is
called an insured.
Insurer
A company, government agency, or private
organization that is offering the Insurance policy is called Insurer. In simple
words, the insurer is the organization that gives a specific amount of money to
the insured one.
Many organizations are providing insurance together.
When to get Vehicle insurance?
Car or any vehicle
insurance is taken only when you are the owner of any vehicle like a car,
motorcycle, etc. or when you have taken the car or any other vehicle and the
policy is applicable in case of theft or accident with the car. It also has its
specific application process, after which one is entitled to get insurance from
any agency.
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