Generally speaking an Insurance (any type) is something where many people financially share the burden of loss or damages of a person effected by accidents or other catastrophic events. Insurance policies are usually bought to cover the damages incurred on virtually any type of property and personal belongings. Individual persons, families, organizations including non-profit entities can buy Insurance policies to cover properties and assets. Personal Insurance is a policy bought by an Individual person and families.
A Personal Insurance usually provides coverage for :
In the United States and many other countries, some types of Personal Insurances are mandatory while others are strongly recommended. For example Auto Insurance is mandatory to cover drivers when on the roads. An Auto Insurance also provides coverage to other people from any damages you might cause while driving your vehicle.
One of the most important and highly recommended insurance for an individual and families is Health Insurance. Due to high costs of medicines and medical care, a Health Insurance is necessary to cover the payments of medical expenses.
Another common example of Personal Insurance is Life Insurance or Life Assurance. Life Insurance provides coverage for the risks associated with the untimely death of a person in most cases the bread earner of the family. For example if a man, a wage earner, dies his wife and dependent children would probably be in a critical financial crises. In this situation, Life Insurance covers and protects the family against possible poverty hit and help them survive. The Insurance company usually pays a large sum of money to the effected family. There are two types of Life Insurance policies: Whole Life Insurance or Term Life Insurance. Whole Life Insurance provides coverage to the wife for the rest of her life whereas Term Life Insurance provides coverage for a pre-defined and set period of time.
Insurance Premium is a payment that you pay to the Insurance Company against the Insurance Policy you bought. The required amount of Insurance Premium depends on many factors such as, but not limited to, the behavior of person or business, policy holder’s location and the level of competition the Insurance company may face. To calculate the size of policy and amount of premium, the Insurance company examines the types of coverage and associated risks. Generally the greater the risk associated the more expensive the insurance policy will be.
In most cases Insurance Premium is paid on a monthly basis but some Insurance companies require quarterly, half-yearly or even full advanced payments before coverage starts.
Don’t be lured by low premium offers and other high claims for timely payments. Before any signup, do your own research, google on the company and read customer’s reviews. Websites like Insureye may help you explore customer reviews and their experiences with many Insurance Companies. Despite all high claims, some Insurance companies disappoint customers greatly when it comes to make the payment of claims.