We can constantly observe numerous situations that randomly end up negatively harming people or companies, both in economic aspects and in healthy aspects. Apart from being exposed to accidentally suffering any damage, we must take into account the economic impact that can have repair or solve the damage suffered. Therefore, one of the best ways to cover all eventualities and their cost is through the purchase of insurance.
What is an insurance?
An insurance is an agreement that a person makes with an insurance company so that in case the private person or company suffers some damage that has covered in the insurance contract, it can be compensated totally or partially. The insured , in exchange for the coverages offered by the insurance company, pays a periodic premium to the insurer.
Due to the great importance of being insured, there are several insurances such as car insurance, liability insurance, dangerous dog insurance and home insurance of a mortgaged home, which are compulsory insurance to hire them by law.
What is an insurance policy?
An insurance policy is a document that details the Insurance Contract in which all the coverages agreed between the insured person or company and the insurance company are found. The insurance policy is characterized by having all the rights and obligations between the parties. Below we can see the basic information provided by the insurance policy :
- Personal information of the insured and the insurance company
- Detailed description of the insurance contracted, as well as possible details to take into account
- Amount of the premium to pay and the periodicity of your payment
- Validity of the insurance: duration and date from which it is effective
- Sum assured
- Benefits and endorsements, that is, the additional coverages contracted or modifications made
- Beneficiaries of the insurance in the case that they have them, which will be the ones that will receive the compensation
Who is involved in an insurance contract?
- Insurance company : company that provides insurance services and is obliged to indemnify the insured in the event of the event insured in the contract.
- Insured: person who holds the insurance contract and who is also exposed to the risk.
- Contractor: person who signs the insurance policy and is responsible for paying the premium (compensation for the insurance policy, is calculated based on the eventuality calculations of the loss and the insurance history of the client).
- Beneficiary: person who is indemnified according to the conditions established in the insurance contract in the event that the event occurs.
Deadlines to be taken into account in the insurance contract
- Acceptance period : this is the time between when the insurance company proposes an offer of insurance and the person who wishes to take out the insurance accepts the offer. Normally the acceptance period is fifteen days.
- Lack of coverage: this is the period between the formalization of the policy and the date on which the insurance coverage begins. During this period, the insured does not have coverages.
- Grace period : it is about 30 days after the payment of the premium or the periodic policy, in case the insured has not made the payment. During this time, the insured will be covered.
What types of insurance are there?
When hiring insurance, we must take into account what type of insurance we want to hire based on our personal or professional needs. Insurance are classified among the personal insurance , the insurance or property damage and insurance service delivery.
- Life insurances
- Personal accident insurance
- Health insurance or illness
- Dependence insurance
Property or damage insurance
- Car insurance
- Engineering insurance
- Multi-risk insurance
- Credit and surety insurance
- Insurance of various pecuniary losses
- Theft insurance
- Transportation insurance
- Fire insurance
- Liability insurance
Insurance for the provision of services
- Travel assistance insurance
- Death insurance
- Legal defense insurance
In spite of all the insurances mentioned above, there is a great variety of insurances within each type to which we can access depending on our needs. It is important to know above all what risks we are exposed to and compare what it would cost us to face the cost of one of those risks and on the other hand, what we would save if we took out insurance.
Finally, highlight the fact that more and more insurances are adjusted to our needs, we can hire a personalized system in which only the coverages that suit you are found.