In description, insurance can be said to be the means by which is shielded from loss in terms of finances. For insurance to work the insurer and insured must be present, the crucial work done by the insurer is to sell the insurance cover while the insured has to buy that insurance cover. The insurer and the insured must come to terms that the insurer will compensate the insured if he undergoes financial loss due to some unforeseen calamity if he, the insured agrees to pay some agreed amount of money for some agreed amount of time.
The type of insurance responsible for the personal residence of an individual is called home insurance or commonly as homeowner’s insurance cover. Most importantly, the homeowners insurance policy covers the home itself, all its contents plus all losses that may result as a consequence of a disaster such as floods or earthquakes. The feeling that your family is safe because you will always have a home for them thanks to the home insurance policy makes individuals feel at peace.
On the other hand, life insurance refers to the contract taken between the assurer and the assured that the assurer will pay a selected beneficiary a sum of money if the assured keeps making regular payments to the assurer. In the event that the assured actually passes on, then there will be no worries like burdening the assured relatives as the assurer will release the funds as agreed to take care of the children’s needs. In addition, the policy may be used as collateral in acquiring huge loans for purposes that the assured deems important enough.
Last but not least is auto insurance, also known as car, vehicle or motor insurance, it covers all road vehicles including trucks, buses and cars. Motor insurance covers physical damage that may be caused by traffic collisions to passengers or pedestrians or any harm caused after in terms of finances. After the accident, people masquerading as good Samaritans may steal and in the process cause more damage hence, vehicle insurance takes it upon itself to provide more financial protection against such.
More people should be encouraged to take up insurance because we see its pros beating its cons, if it has any, by a very large margin. For life insurance the assured may specify that he will withdraw all the premiums he has been paying after a stated period of time instead of them going to the beneficiaries after his death and hence we see that insurance could be also use be used as a saving tool. Insurance is the best option for those who want to keep their properties intact.