by Cecile Cinco
If or when the dreadful happens, you or your beneficiary will be paid the promised sum. That’s the bottomline of insurance.
There are basically two types of insurance: life and non-life. Life answers to the WHEN dread while non-life to the IF dread. Both are dreaded.
Some years ago I provided life insurance, hence my ICQ handle, Life Provider. I took up the licensure exam and I passed. The problem is, I really was the introvert type so I didn’t sell well.
A few years later, I got involved with preneed plans. They are pension plans, educational plans, bonds, car and even fire insurance.
Basically you want to get something out of your own money plus more. It’s money paid for a loss of the insured, whether the insured is the life or the thing. If it’s your life that is insured and you die, your beneficiary gets the insurance money. If it’s your car or your house, you get the money.
Did you know that no insurance company will accept Jacky Chan?
When you buy any kind of insurance, age matters, whether for life or non-life.
If you get yourself insured, the younger you are gives you cheaper premium payment because you are less likely to die of old age. Of course no one wants to die young so the insurance company hooks you into buying now at a cheaper price because death is sure and can happen anytime, at least you’re protected against the loss of INCOME POTENTIAL, for your dependents/beneficiaries or even for yourself if you reach maturity and old age…at least you have your continuous income as retirement benefit.
If it’s a house, for example, that you insure, against fire, you are paying the insurance company certain amount so that IF the fire happens, you get something to start building a house again from. This is usually an annual renewal. If you don’t have a burned house for the duration of that year, you lost the premium paid. IF it happens, on the other hand, you get the promised lump sum.
Not everyone or everything is insurable. Insurable interest is very much considered. Know more about Commercial Insurance also.
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