What comes to your mind first when someone talks about insurance companies and their policies? Probably a fear, or being afraid of losing something thinking about the consequences. Maybe the insurance agents talk in a way that you get fear for your life and health. Death is inevitable, although it's a bit harsh but being human we don't even want to think about that. And life insurance companies and their policies make sure that your children are getting enough resources after your death so that they can take care of themselves.
But Insurance is not always about life, there are different types of insurance like Car Insurance, Travel Insurance, Home Insurance, and fire insurance. It's all about providing a person protection against a specified loss or eventuality. If you are keeping yourself away from Insurance Companies and Insurance Policies, then it's not about the complexity of it but the lack of awareness and information about it.
How Insurance Works?
Insurance is actually a way of transferring risk to insurance companies that are specialists in the field and they make sure to be responsible for your risk. These Companies will cover the cost of the loss of the car, home, or even your life. Although there's no substitute for life, they will aid your loved ones with financial payments after your death. So the primary purpose of any Insurance Company is to protect you from a financial loss.
Insurance Companies offer different policies over different types of insurance. If you are getting insurance for a specific event like fire, accident, car damage, health, or life, you'll need to pay a certain amount of money on a regular basis which is called "Premiums". The company pays you a certain amount of money when the incident happens you have insured against. Obviously, these incidents don't happen simultaneously to every person or member of the policy. The company is able to invest the collected premiums in their businesses to generate profits through it.
$200 Bonus for Opening an Account (Bank of America)
You can get a $200 Bonus for Opening your account in Bank of America according to a recent promotion reported by Forbes. The Bank of America is the second biggest and the most famous bank in the United States of America offering its banking services since 1998. This Famous bank has more than 40 million customers all over the country. Do you know what's the good news about it? Now It's offering $200 for it's every new account holder.
How you can avail of this offer?
- Open your Checking account in BofA using the promotion code.
- Meet the qualifying requirements of the bank.
- You'll receive your money within 60 days.
Types of Insurance Policies In the United States & Worldwide
As you know that insurance ensures that you will get help on the loss of something like property, car, house, health, or life with money if you buy a certain insurance policy. There are different types of insurance policies, a few are mentioned below.
- Home / Property Insurance
- Life Insurance
- Health Insurance
- Travel Insurance
- Auto / Car Insurance
1- Property Insurance
Property insurance policies provide protection against any natural or unnatural disaster happening to a person's building or land. It could be for both owners and renters depending on the nature of the policy. If a renter gets injured on the property, he'll get reimbursement. And there are 3 known types of property insurance, which are replacement cost, extended replacement cost, and actual cost.
2- Life Insurance
A life insurance policy is the most common type of insurance policy. And it's actually a contract between the insurer and the company providing insurance, that their named beneficiaries will be paid a sum of money on the death of the insurer. The policyholder is bound to provide the premium to the company for his lifetime. The insurance company requires you to provide the exact health history of the insured person.
3- Health Insurance
Health insurance is a type of insurance policy, in which the company ensures you that it will cover the cost of health care. The policyholder gives them premiums on a monthly basis. And there are different concepts in health insurance like copay, coinsurance, and deductible.
- 1- Deductible: The amount a customer pays before the insurer starts meeting the cost in a year.
- 2- Co-Pay: Even after the deductible is met, the subscriber pay fee for specific services like doctor visit or medicines.
- 3- Coinsurance: The percentage of Healthcare cost that a subscriber pays even after the deductibles are done.
4- Travel Insurance
In travel insurance policies, the subscriber will be getting the sum of money on any loss or damage that happens during traveling. Some tourists who are passionate to do world tours or visiting different countries around the globe buy an insurance policy for traveling. And most of the time it becomes a required thing for your visa issuance.
5- Auto / Car Insurance
Auto or car insurance policies provide you a loss coverage on accidents, theft, or any damage that happens to your vehicle. Auto insurance is required in some states but in some other states, it is not that mandatory. And in car insurance policies, the minimum liability insurance is considered the cheapest one. Just like all other insurance policies, the subscriber would be paying "premiums" on regular basis to the company.