Modern life is full of dangers: illness, accident, job loss, disasters and much more. No one is protected, and if serious problems arise, not everyone will be helped, so it is better to play it safe yourself. A huge number of companies operate in the insurance market ; all of them offer a wide range of services, various insurance premiums and conditions - it is sometimes difficult to determine. Before choosing an insurance company, it is necessary to understand what this process is as a whole. If you do not know, we will help you.
Insurance originated a long time ago and at the initial stage, insurance premiums were of a commodity rather than monetary nature. People have always understood that losing is easy, and it’s better to pay than to be left with nothing. Nowadays, insurance has become an independent economic institution, where companies themselves determine the size of insurance premiums, types of insurance and contract terms. To put it in a simple and understandable language, the insurance indemnifies the losses incurred by the client based on the type of contract and the amount under it.
Insurance premiums are payments paid according to the insurance contract by the insured. Subsequently, the client’s insurance fund is formed from these amounts. Each insurance company establishes its insurance premiums, the rates of which are calculated by analysis. This takes into account: the possibility of an insured event, the insurance period, the total amount of insurance, age and position of the client. All this is a very complex process, so each insurance company is trying to make the most favorable conditions for themselves.
Insurance performs key functions in the modern economy. The savings function, like bank deposits, contributes to the accumulation of funds to customers. This means that upon the expiration of the insurance contract, all accumulated insurance premiums may be returned to the owner if an insured event does not occur. The preventive function helps prevent insurance claims, for example, companies can conduct medical examinations among their clients to prevent serious illness. The control function guarantees the safety of the funds making up the insurance premiums and their use only upon the occurrence of the insured event prescribed in the contract.
The main types of insurance: property insurance (home, apartment, cargo, business), personal insurance (against illnesses, pension insurance, life insurance, persons traveling abroad), liability insurance and specific risk insurance.
Consider the persons involved in the insurance process:
- Insurers. These are companies and organizations licensed to carry out insurance activities and work with clients on a commercial basis.
- Policyholders. It is, first of all, we, clients of insurance companies. Insurers conclude an agreement with insurers, pay the agreed insurance premiums and receive compensation in the event of an insured event.
The following persons can act as clients - payers of insurance premiums: organizations and enterprises, individual entrepreneurs, individuals. If one person acts as a payer of several categories, then payment is made separately. The size of insurance premiums is regulated by the state and may vary throughout the year.
Insurance is the key to a successful future for every person. Having insured your home, car, health or something else, a person can be sure - in case of problems he will have someone to contact. The whole civilized world pays insurance premiums, insures its property and other expensive things to always have confidence in the future. Everyone can determine the conditions that are convenient for themselves, the type of insurance and the amount. The variety of companies and firms provides an opportunity to choose. Do not rush, it is better to think and calculate several times, and only after that conclude an agreement. Give yourself peace of mind and enjoy life, rest assured that you can always recover your loss.