Insurance – Facts, Importance and Needs
It is for sure that any man would face unexpected events, actions, crisis and some of the life storms that usually appear to be out of control. These events often affects man’s life physically or financially. The clear fact here, is that no one can put himself out of such problems, if they are about to occur or even protect himself against their severe impacts. Hence, this fact shows us the great importance of insurance and its vital role in facing the ups and downs of man’s life.
Insurance can simply be defined as a kind of a deal between the insured ( who has to pay some sums of money periodically ) to the insurer ( who would have to compensate the insured with a sum of money upon the occurrence of a specific circumstance or condition such as potential future losses. In fact, insurance has passed a lot of stages where it has developed to serve the rights in most, if not all, situations that can be encountered man along his life.
As we know that insurance covers many sides of man’s life which may include examples like car insurance, health insurance, disability insurance, life insurance, and business insurance. With the huge numbers of the insurance policies and companies, we may find that many of us aren’t aware of better policies and better companies and better prices in the area of insurance that covers their needs without costing them more than their capacity or to pay the money without giving them any benefit.
That is why, we promise to provide you with a series of articles ( through our website ) that would give you the whole idea of comprehensive, complete and detailed information on most aspects and cases of insurance and how to get the best return and the agreements that benefit the largest. Now, we are going to answer some general questions about some of the basic sides of insurance, as an introduction to the following articles, in which we will discuss each side separately.
Why should you insure your life?
When you plan for your life you must take in mind your family’s needs such as medical expenses, house rent, the expenses of marriage and education. Throughout our lives we are exposed to different risks such as poor health status, exposure to financial distress, accidents, and therefore. Insurance will help protect you from damage or loss that could result from it, converting the impact of those hazards.
Your purchase of an insurance policy on the ownership of your life means coupled with a guarantee of your eligibility to the amount of insurance in case of death, “God forbid” or at the end of the period of insurance (depending on the type of your insurance policy. In case of death, the insured person, his heirs and deserves compensation equal to the full amount of insurance the insured. In the case of an accident to the insured person or injury to any of the diseases, which could lead to his inability to restore normal life again (no ability to exercise its work), the insured would have to pay him the insurance money.
How do you determine the value of life insurance you need?
The first step: consider your expenses. Try to estimate your family’s annual budget. It should include your expenses in the basic living expenses, child care, and premium real estate finance, and the expenses of education (private schools), and so on. The second step: try to consider the amount of assets that you own, try to estimate the value of assets invested or saved by, or any other sources of income, such as (annual confused). Step Three: define what you can save. From the previous steps, select a certain amount you can save to buy an insurance policy. Here you should be sure about your ability to pay this amount monthly or quarterly or annually. Step Four: Select your insurance.
Consider what type of insurance you need, do you need only to cover the risk of death? Or do you want to include a savings element of insurance policy to cover the side of death? and also what is the period of insurance do you want? Step five: compare your needs with the insurance that you will get. Select the document to suit your potential financial.
Why should you insure your business against threats?
Can have some kind of material losses on your business and your projects as a result of fire, theft, destruction, disable the machines, any sudden shocks, natural disasters. This may result in loss of life of those risks people, the collapse of the buildings. And, as a successful businessman, aware of each risk can have on the business or its projects, you must insure your business and your projects against the dangers past and manner sufficient to reduce the impact of those risks. Any project or work takes years and years to build and set up and spend a lot of money, and achieve those losses overnight may refer you to a poor person “does not have anything.