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Why we need insurance? Beginner Introduction for claims and premium
Introduction - Why we need insurance?
Why do we need insurances?
Well it is a very important financial instrument, in simple words it is a kind of financial help that one can get when something wrong happens. In the event of something wrong the need of money is fulfilled by the insurance cover. This is the foremost reason that explains why we need insurance.
Lets for example you are paying premium of few dollars to get the cover of thousands of dollars. It means that by paying simple small payment you are securing yourself. If something wrong happens you can claim the thousands of dollars from the insurance company.
Now the wrong things may include accidents, thefts or even death. Based on the incidents there are different types of insurances that are available. Different types of insurances include health insurance, life insurance, auto insurance, travel insurance and many more.
The amount of cover depends on the premiums that you are paying for the cover. There is a direct relation between the premiums and the cover amount; if you are planning for higher amount of cover than you need to pay higher premiums. It depends on your requirement and that is why it is essential to calculate the correct amount of premiums that are needed to be paid in the form of premiums installments.
The insurance sector of business is evolving in almost every country and companies of private sector and public sector are working for the same. It is a great source of help for the people who need help under difficult conditions.
In the recent times people have seen that how much USA government done for the health issues. The health insurance is very important for the well being of people. Nowadays the employers need to pay for the health insurance of the employees. Under the salary package such perks are included. There are two types of facilities available cash less health treatment or pay for your bills in the hospital and later on claim the same from your insurance company.
You need to have proper valid proof with original bills to prove that the incident actually took place and you are not cheating with the insurance company. Sometimes there are some problems in the system and may take some time for the payment. But it happens rarely if the event is crystal clear true than there are very rare chances of delays in insurance claims.
I hope that the simple paragraphs above have given some introduction to the people who are unfamiliar with insurance. We need insurance to protect ourselves from the bad times.