Everything you want to know about insurance in 2024

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Everything you want to know about insurance

Life carries with it many surprises, whether they are pleasant ones that make us happy or those that come without warning and bring with them what we do not expect. We are all exposed to risks and difficult circumstances in the stages of our lives, as humans are vulnerable to accidents and every accident carries with it financial costs, whether that is the cost of medical treatment or Repairs to the vehicle or the cost of replacing items that are damaged or lost.

In this context, it appears that it is necessary to be prepared to face these unexpected financial shocks, and despite our desire to avoid the occurrence of these accidents, they may occur at any time, and from here comes the role of insurance as a vital idea aimed at compensating the damages resulting from accidents. By bearing the associated financial costs.

What is the concept of insurance?

Insurance activity is based on a simple principle whereby a group of individuals pay regular amounts of money, whether monthly or annually, to insurance companies. This may be done with the aim of compensating for damages that may occur as a result of accidents or other risks facing one or more of these individuals, as these companies are called. “Insurance companies” and the insured person is referred to as the “policyholder”.

The policy that a person carries, which specifies the agreement between him and the insurance company, is considered an “insurance policy.” The fees paid by the policy holder are referred to as the “insurance premium.” Insurance is characterized by being an agreement that specifies the possible outcomes. Participants also agree that the amounts they pay will compensate them for damages resulting from Unexpected incidents. This gives them psychological comfort and confidence to pursue their investment activities and enjoy life, including travel, trips, and implementing long-term plans such as buying a new home, etc.

On the part of the insurance company, the rate of accidents and their costs can be calculated accurately due to the size of the large customer base. This method of calculating costs is called “statistical science” or “insurance calculations.” This approach ensures that the insurance fees imposed on customers are balanced with the expected size of losses and the rate Her accidents.

Types of insurance

The idea of insurance to prepare for unexpected expenses extends back to the times of ancient Babylon, where types of insurance coverage developed to include a wide range of risks. Property insurance can now be obtained against fires, theft, weather disturbances, and even earthquakes. In addition, business interruption insurance provides protection for companies from various risks. Risks that may lead to temporary suspension of activities and thus business interruption.

Types of insurance also include life insurance, where the family of the insured person receives the insurance value in the event of his death. There is also health insurance that covers medical costs. In addition, liability insurance is one of the most important forms of insurance, as insurance programs cover damages that the insured person may cause to parties. Others For example, car insurance includes not only repair costs but also damages and losses resulting from car accidents.

Liability insurance aims to protect companies and individuals from financial or legal costs resulting from their mistakes. There are other types of insurance that include the fields (marine, financial, construction, sports, and entertainment). This diversity led to the establishment of reinsurance companies that are concerned with insuring the insurance companies themselves.

What is the way to obtain insurance service?

There is one way to access any insurance service, regardless of its types, which is by submitting a request for the desired service, where the individual or company seeking insurance fills out a service request that the insurance company can use to evaluate the risks related to the person or entity submitting the request. For example, A smoker may be required to pay higher health insurance premiums compared to non-smokers, and skydiving enthusiasts pay larger amounts when requesting life insurance. According to this request, the insured obtains an insurance policy, so it is known as an insurance policy that contains the conditions by which his right to compensation is determined.

When the insured is exposed to an accident or loss, he submits a claim to the insurance company, where the compensation officer evaluates the value of the losses and ensures that they are consistent with the conditions stated in the insurance policy. After verifying this, the insurance company pays the value of the claim to the insured.

Do you need insurance?

Of course, few of us are able to save sufficient amounts to cover potential risks and accidents in our lives even if you are able to, so paying in monthly installments is a better option in terms of rationalizing costs.