Through the deadliness of omicron which is approaching several countries one by one. it is highly dangerous variant of novel corona virus. Amid this situation it has become more important to get yourself a life insurance.
what is insurance?
insurance is a means of protection from financial loss. It is a form of risk management measure that protects one's finance after an uncertain loss.
an entity that provides insurance is called insurer or insurance company.
A person who buys insurance is called a policy holder or the insured. The insured recieves an insurance contract called policy document which serve as his proof paper.
Principles of insurance
The insurance policies work on the following principles.
1. Insurability
Risks that are insured has following characteristics:
(a) Large number of exposure units.
(b) Definite losses
(c) Accidental loss
(d) Large loss
(e) Calculable loss
(f) Affordable premiums
2. Legal
In the insurance process there are various legalities that are need to be fulfilled. These legal regulations and requirements are mandatory for any insurance process.
3. Indemnification
To 'indemnify' means to make whole again.
4. Exclusion
Following two exclusions are typically included in policies:
- Nuclear exclusion
clause
- Wax exclusion clause
- Methods of insurance
There are various kinds of insurance:
1. Co-insurance: Here risk is shared between insurers.
2. Self-insurance: Risk is not transferred to insurance companies.
3. Dual-insurance: two or more policies overlapping coverage of risk.
Types of Insurance
several types of insurances includes the following:
1.Auto insurance:
Auto insurance protect against financial loss involving a vehicle they own. For instance in the case of traffic collision.
2. Gap insurance:
Gap insurance covers the excess amount on your auto loan in an instance where your insurance company does not cover the entire loan.
3. Health insurance:
Health insurance policies covers the cost of medical treatment.
4. Income protection insurance:
These policies provide financial support in the event of the policyholder becoming unable to work because of disabling illness or injury.
5. Casualty insurance:
Casualty insurance insures against accidents.
It has a broad scope.
6. Life insurance:
Life insurance provides a monetary benefit to a decedent's family or other designated beneficiary, and may specifically provide for income to an insured person's family, burial, funeral and other expenses.
Insurance before Omicron
As we are talking about the risk management measures, we must not ignore the greatest risk that is approaching our country after corona namely omicron.
we must get ourselves life insurance before facing this deadly virus reach us.
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