Insurance: What it is and understanding the results

Insurance: Overview

Insurance is a social and economic system aimed at countering damage that can be caused to an individual or his property, or that can harm a group of persons or commercial or non-commercial institutions.

Why insurance is important

Getting insurance is very important because most risks once they occur, they cause a significant loss and leave you affected and suffering or in case of need.

Insurance: What it is and understanding the results

Insurance has become inherent to all economic activities and has developed in a way that meets all needs, and from here we found it necessary to present the basic concepts that you should know about insurance in general

What is insurance?

Insurance is a way to protect against future risks that you may be exposed to, whether you, your loved ones or your property.

Insurance is a way to protect you from the possibility of some unforeseen situation that will negatively affect your financial interest.

How does insurance protect you?

The insurance company bears the risks that you may be exposed to. This is done by having the company pay your expenses for the event almost immediately. In exchange for this service you must

Pay a monthly amount to the insurance company, this amount is called the insurance premium.

There are different types of hazards such as diseases, fires, theft, floods, accidents in cars, etc.

Thus, there are also several types of insurance that can protect you and your loved ones in any of these situations and throughout this document we will explain the main types of insurance and their benefits so that you can make a wise decision on

It's time to get insurance.

Who participates in insurance?

The insurance contract includes three important parties:

  • Insurance company: It is usually an insurance company that assumes the risk and agrees to pay compensation in the event of a particular event.
  • Policyholder: The person who signs the insurance policy and pays the insurance premium to the insurance company. It is also responsible for determining who will be the beneficiaries.
  • Beneficiary: A person who receives compensation or service from the insurance company. The beneficiary can be the same person as the policyholder, or it can be a third party, an immediate family member or a friend, for example.

What are the most common types of insurance?

Insurance is divided into two large groups, personal insurance and general insurance.

Personal insurance, as its name indicates that the insured is a natural person, can

Be a family member, a friend or yourself. This personal insurance protects you and your loved ones

Against the different situations that we are going to present below.

Life insurance: This type of insurance is contracted to reduce the economic impact

After an accident that can affect your life or the life of anyone.

The insurance company must compensate your family financially in the event of death so that you have no problems with the money in case you are missing

Accident insurance: In this type of insurance, an accident prevention is contracted

that you may be exposed to. The insurance company agrees to pay you compensation at

If you have an accident that causes you permanent or temporary disability

It allows you to generate income. These conditions are specified in the policy, in most

Of the cases, hospitalization, ambulance, transportation, etc. expenses are covered by

Insurance Company

Health insurance or sickness insurance: This type of insurance is contracted to reduce

Medical expenses, payment to specialist doctors, purchase of medicines, etc. at the time

that you need. The insurance company must pay you or sometimes compensate you for

The percentage of expenses you have to cover in case you are injured.

General Insurance is that which protects your assets (movable and immovable) against

accidents, thefts, damages, fires, floods, even natural disasters.

Property Insurance: This insurance is contracted to cover future property damage

Property, i.e. your home or apartment in the event of fire, flooding or damage to your property

Insurance company after conducting inspection

You determine how much they should pay you so that you can repair any damages your home suffers.

Motor Insurance: Motor insurance is contracted to protect your car and motorcycle

etc. against bumps, thefts, scratches and missing parts.

In the same way as the insurance company

Perform the inspection to analyze the damage and determine to pay the appropriate insurance amount

Machinery insurance: This type of insurance is normally contracted by companies

Construction companies, factories or people working in this field with heavy machinery, hire

This insurance is mainly for replacement of damaged parts, theft, and even breakdown in

The status of being transport vehicles.

How does insurance work?

Insurance is the main way for businesses and individuals to reduce the financial impact of a risk occurring

When things go wrong it can be expensive and so, for many of these eventualities, insurance is there to take the financial risk on our behalf.

A business that provides insurance agrees to take on risks on behalf of a company or individual, in exchange for a fee. It does this by providing the business or individual concerned with an insurance contract, sometimes called a ‘policy’.

This policy will cover a person or business for many of the costs they have to meet as a result of a risk occurring and provides the policyholder with some security should the worst happen.


Sources of material we relied on

insurance- Wikipedia

From the author, he used primary sources to support his work.

Allianz | Number 1 Insurance Brand in the world.

Allianz: is one of the world's leading insurance companies and asset managers. You can get to know her

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You should make your financial decision after serious studies and legal advice with your financial advisors.

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