You want to be safe ?
Would you like to go in a vacation , knowing that no matter how long you sit there , all your assets will be safe ? You worry about tomorrow ? About children and how much the college will cost ? There are many ways to be safe in life . This is just one of them
You want to be safe ?
There are many ways , we people protect ourselves against unfortunate events in our lives. Some of us surround their places with electrified fences . Others are surrounded by bodyguards . Some of us prefer to keep assets in vaults protected by sophisticated alarm systems . And a small group of us choose to go the easy way .
We take an insurance policy !
The definition of insurance sounds like this :
“ A contract whereby , for specified consideration , one party undertakes to compensate the other for a loss relating to a particular subject as a result of the occurrence of designated hazards “
On short , insurance means protection against any tragedy . The history of insurance is probably as old as the story of mankind . The same instinct that prompts modern businessmen today to secure themselves against loss and disaster existed in primitive men also . They too sought to avert the evil consequences of fire and flood and loss of life and were wiling to make some sacrifices in order to achieve security.
Though the concept of insurance is largely a development of the recent past , yet its beginnings date back almost 6000 years !
Most people do insurance to themselves and their families . Now let’s face it , insurance does not increase your financial status , however it is a service charge taken by insurance companies to give you protection against any kind of miss-happening.
Insurance policies can be short term or long term , in either case people have to pay some amount to the insurance companies for a limited time . This amount its called premium and its usually decided as per the scheme taken
Now let’s talk a bit about the types of insurance . They are broadly classified into two big parts , covering different types of risks:
- long term insurance ( life-insurance)
- general insurance ( non-life insurance)
Long term insurances is so called because it is meant for a long- term period which may stretch to several years or whole life-time of the insured. Long-term insurance covers all possible life insurance policies . Insurance against risk to one’s life is covered under ordinary life assurance and they are classified in following types : whole life assurance , endowment assurance , assurance for children . term assurance , annuities , money back policy .
General insurance also known as non-life insurance means for a short-term period of twelve months or less . General insurance can be classified as follows : marine insurance , car insurance , property insurance , fire insurance , pet insurance , agricultural insurance , etc. You can practically make an insurance policy for almost everything including parts of the body . I am convinced you heard of famous singers who have insured their voices for millions of dollars .
Now the problem is that how to decide that which policy is suitable for you . Its very simple , all you have to do is you can go to an insurance agent , discuss all your needs and budget and I can assure you , that person will suggest the best policy for your situation .
And if you still wonder , after reading my article , why you need an insurance policy , let me respond you this way !
Being caught without insurance can lead you to severe consequences . Most liability coverage protects the policy owner from paying court costs and huge amount from lawsuits . And lawsuits and lead you to an award of MILLIONS of dollars to an offended party .
Being insured means you don’t have to pay for all the damages yourself. It helps you to know that you are safe and protected if something happened to you or your property.
It helps you sleep peacefully at night knowing that someone helps you in case something bad happened .
In the end , this is the insurance all about , it gives you peace of mind !