An Introduction to Insurance & how it works

Insurance

An Introduction to Insurance 

With the insurance sector in full bloom, today, it would not be wrong to say that in the present market scenario, there is an insurance available for just about anything and everything. With even a bourgeois family man opting for various insurance schemes, the question today is not whether you have insurance or not. Instead it is, whether you need a particular insurance or not? 

Insurance is no doubt an area of immense importance in regards to the financial and monetary sectors of every individual. The whole idea behind Insurance as a financial security tool was to design something which could secure the financial well-being of an individual as well as his/her dependents, in case he/she undergoes an unforeseen loss. These losses could be related to health, property, assets or life in general. 

Insurance helps people manage monetary risks and losses related to investments, liabilities for wrong financial actions, and risks for inability to earn income at any stage of life. Insurance generally covers all these risks. 

How it works

While applying for insurance, you need to fulfil a lot of paperwork formalities. A handful of forms need to be filled in by you while applying for insurance with a particular insurance company, some of which are compulsory by law, while the others are optional, depending from one company to another. 

By filling up all the necessary formalities and agreeing to the terms and conditions of an insurance policy of a particular company, a contract is developed between the both of you. 

An insurance policy encloses in it a copy of all the terms and conditions of the insurance company as well as providing you with the detailed information about the monthly premium you will be paying, also specifying the life or the term of the insurance. 

The policy will also enclose in it, all the accidents or mishaps which will be covered by the insurance company in case they occur to you or any of your dependant or property or assets, depending upon the type of insurance you have opted for. 

The insurance company agrees to pay you a sum of money to recover the losses you underwent in the occurrence of a specific mishap, in exchange for the monthly payments made by you to the company, also known as the premium. The severity of that event or mishap may be varying from a car breakdown to a medical emergency, depending on the type of insurance you have opted for. 

If you underwent an incident which you know has been insured by your insurance company, you can make a claim for all the damage done in the incident and can receive a payment for d same from them. On every claim that you make, be it a huge one or a nominal one, you will receive an amount you are insured for, excluding a fraction of the total amount which you must pay for, in each claim. The higher is the fraction of amount which you agree to pay for every insured incident, the lower are the premiums which you will have to pay to the insurance company and vice versa. 

Hence, it is always advisable to pay a higher premium in exchange for a lower deductible amount you pay, especially for the claims that are likely to be made by you sooner or later. 

TheLoanBazaar.com provides its clients with the most suitable insurance schemes and policies to suit their needs and requirements. We provide Insurance to cover various events and incidents and our Insurance services can be broadly classified into 5 types, which are:

Home Insurance 

Real estate assets or property are always at risk for theft or destruction by various causes such as accidents, natural calamities, or any other mishap. Home insurance with TheLoanBazaar.com helps you manage all these risks. 

Health Insurance 

Medical care these days costs much higher than what it was ten years back. Health care insurance is necessary for every individual to assure a passable level of medical care required to lead a healthy life. With the old aged people, a health insurance can get them reassured about paying their medical bills in case of emergencies. 

Life Insurance 

A life insurance is beneficiary especially for the people who are the sole bread earners of their house or the ones with many dependants on them. In case of any mishap, if their family were to lose them due to a death, their family would be forced to suffer financial sufferings. 

In case an accident leaves them disabled for their present job, although the insurance company would not be able to payback the loss of the disability, but would at least be able to cover your losses and keep you from going into a financial loss. 

Travel Insurance

This is intended to cover any of the financial or any other losses which were incurred by the insured while traveling, be it nationally or internationally, such as mountain trekkers, cruise travelers etc. 

Auto Insurance

Damage of such assets like cars, trucks or any other vehicle can be unpredictable during traveling. Any mishap or accident can take place any time. Auto insurance protects certain assets from many forms of loss by insuring it for the damages consequential to the asset's use. 

TheLoanBazaar.com provides its customers with all these insurances to help them build and live a safer life.