Insurance for Young People

2007-03-08 10:33:40

( Insurance )



Insurance in General
Insurance allows people to receive compensation in the event that death, disability, or accident causes damage or loss to an individual.

Insurance Principles
The main principles of an insurance policy are risk distribution and resource pooling. When risk is spread out evenly across persons who are exposed to it, and resources are pooled properly, those who suffer loss can be compensated easily.

Insurance Premiums
Insurance is paid for in period payments called premiums. Premiums cover the cost of insuring a person or thing. The cost of a premium is based on factors that increase or decrease the exposure to risk. The factors that affect risk are age, family health history, and lifestyle. These are used to compute premiums for life insurance. Insurance that covers property considers the value of the property, and its exposure to risks of fire or calamity.

Insurance for Young People
Young people are at a lower risk of death, simply because diseases and death do not statistically occur in great numbers among the young. Insurance for young people is therefore cheaper, and beneficial to both the individual and the insurance company. Insurance for young people can provide excellent insurance at low premiums. It can also provide greater savings and dividends, if the policy is one that allows payment of dividends. Those kinds of policies are called participating policies.

Cheap Car Insurance for Young Drivers
Cheap car insurance for young drivers may not always be easy to find. A risk factor in car insurance is the years of driving experience of the driver. However, many insurance companies grant basic car insurance for low prices. It is when liability for damages to third party and property is covered by insurance that additional costs are added. Car insurance is excellent for young drivers, as their inexperience may increase the possibilities of accidents. All in all, insurance for young people is a good idea, whether it be for their vehicles or on their lives.


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