What is 'Insurance' ?
Insurance helps you protect yourself against risks like a house fire, car accident or any demages. You can also get insurance that pays you money if you get too ill or injured to work or to provide for your members of the family if you die.How insurance works
With insurance, you select what you want to be protected or saved against.
Then your insurer calculates or check the risk that the events to be insured will happen and the insurance provider or insurer will determine the amount you will need to pay .
These are the three main steps:
- Choose a policy. An insurance policy is a document that lists exactly what you are or are not protected against. For example, a travel insurance policy might say that it’ll cover your medical bills if you injure yourself abroad – but not if you were doing something dangerous, like skiing.
- Give you the premium. The premium is the amount of money you pay each month or year (or sometimes just once) to have the insurance. The amount you pay depends on the risk and on the value of the events you’re insuring. For example, if you’re an inexperienced driver or any other profession like this. it’s more likely that you’ll have an accident, so your car insurance will cost more – and it’ll be even more if you drive an expensive car, because repairs will probably cost more.
- Make a claim. If something happens that’s covered by the policy and insurance rules , you can claim on your insurance. You tell the insurance company what happened, they estimate and check that it’s covered under your policy, and if the claim meets with the requirements what you’re protected against then they pay you as agreed.
