Everyone needs insurance at some point in their life. Insurance is a contract between the policyholder and the insurer, where the insurer agrees to compensate the policyholder in case of any unexpected loss or damage. In return, the policyholder pays a premium.
There are various types of insurance policies available in the market. The most common ones include:
Insurance helps you prepare for unexpected events that can have an impact on your financial well-being. It provides a sense of security and peace of mind, knowing that you won't be left alone to deal with financial losses.
When you buy an insurance policy, you pay a premium to the insurer. In return, the insurer promises to compensate you if an insured event occurs. If an insured event happens, you file a claim with the insurer, who evaluates your claim and pays out if it's covered by your policy.
Insurance premiums are calculated based on several factors, including:
An excess is the amount of money you will contribute towards a claim before your insurer pays out. For example, if you have an excess of $500 on your car insurance and make a claim for $2,000, your insurer will pay out $1,500.
Choosing the right insurance policy depends on your specific needs and circumstances. It's important to research different policies and compare premiums and coverage levels before making a decision.
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