Insurance is a way that a person can protect themselves for a financial loss. There are several types of insurance including home, car, life, and others that will protect a person in case of an unforeseen event.
The insurance coverage is provided by an insurance company and they are often called an underwriter. The person that purchases the insurance is known as the insured person or the policyholder. The policyholder will pay the insurance company for coverage. In case of an unforeseen event, the insurance company will pay out a specific amount. The amount is agreed upon in the terms and the conditions of the policy. As long as a person continues to pay for their coverage the policy is valid. It may need to be renewed annually. Some insurance types are required. Everyone that drives a car is required to have car insurance. If they are found driving without insurance they can get into a lot of trouble. While life insurance is a good thing to have there are people that do not get this coverage.
If something does happen and a person needs to get money from the insurance company they need to make a claim. A person will need to contact their insurance company and give details information about the event. They may need to fill out specific forms. The insurance company will then look at the claim to determine if they are valid. Each claim will be carefully examined. If there is a valid claim payment will be authorized.
Insurance can offer protection in case of an unknown event. There are many different types of insurance out there. A person should look at their specific situation and determine if they need insurance to protect themselves or their families in case of a tragic or unknown event.