Insurance For Everyone

2007-03-08 10:33:40

( Insurance )



Insurance in General
Insurance is a contract by which one party agrees to pay another all or part of loss suffered from death or accident. In exchange for the promise to pay for all of part of the loss, a fee is charged; this fee is called a premium.

Insurance For Practically Everything
Insurance is an excellent tool to guard against loss occasioned by misfortune, accident, death, and even negligence. For a small fee, you can receive a guarantee that you will be paid for loss, provided it is covered by your insurance. There is insurance for your life, your car, your properties, and even specific body parts.

How Insurance Works
Insurance uses the law of large numbers to predict the chances of certain events. The risk of certain events happening to everyone in a given demographic is very low. Hence, the cost to insure a single person among myriads is little. The small premiums collected from multitudes of people will be more than enough to compensate the few people who actually suffer loss. The specific cost of insurance per person is based on statistics and assumptions. These assumptions are arrived at through careful study and actuarial science, a complicated form of mathematics.

Insurance For Life
Life insurance makes use of the mortality table and an analysis of your medical history to compute a premium that will cover the cost of insuring your life. The younger you are, the lower your premiums, because there is less chance of death. Likewise, life insurance for seniors entails costly premiums, because statistically, an older person has a greater chance of dying.

Insurance For Cars
Insurance for automobiles covers negligence while driving, accidents, third-party injuries, and even total destruction of the vehicle. The coverage will vary based on the amount you are willing to pay. Auto insurance for teenagers who own cars is highly recommended, because it will even cover accidents due to lack of driving skill. The rule to remember, however, is that the greater the coverage of insurance, the higher the premium.

Insurance as Protection
If insurance in general seems like a waste of money, just consider how much it would affect your income if you suddenly became disabled. Insurance can function as compensation or even a replacement for lost income. In many cases, it has kept persons and families from financial disaster. The choice of who to turn to as an insurer will be up to you; just make sure that you pick a reputable company that does not offer too much or too little.


All rights Reserved © Tradenet Services srl
Do not duplicate or redistribute in any form.