It is obviously hard to prevent the unexpected from happening. This is because the Life and properties of each individual are at risk of death, destruction, or disability. But sometimes we can get some protection. Insurance, therefore, is the surest way to safeguard financially or otherwise should in case such unexpected occurrence happens. Insurance is a legal contract between two parties the Insurance company Cinsurer) and the Individual (insured). Whereby the individual/Insured receives financial protection or support against losses from the Insurance Company. However, the Individual must have signed up for an insurance policy and will have to pay a premium.
There is uncertainty about what might happen now or in the future and so insurance is very much important. Over the years many individuals, companies, and organizations are now making use of various insurance companies. This is because an insurance policy protects you from the risk of financial losses or liability for damage caused to a third party. Furthermore, Insurance policies help to cover and secure you from the face of any problem in life. Insurance is very essential/ important in part of financial planning for your business, organization, and yourself most importantly. Moreover, the premium for a big insurance cover is lesser in terms of the money paid by the insured. The insurance company provides a high cover for a small premium and so there is a need to have an insurance policy.
Do Insurance Companies Buy Insurance?
Meanwhile, it is important to know that similar to any other businesses or companies. insurance companies also require protection against risk and this refers to Reinsurance. Reinsurance is that insurance that an insurance company purchases from another insurance company to protect itself from the risk of loss. Just like individuals pay insurance companies’ premiums, insurance companies also pay reinsurers premiums. So, in simple terms, everyone needs insurance as it is essential.
Types of Insurance
There are numerous types of insurance which you can opt-in for. However, it is important to purchase the right insurance and this totally depends on you. This is because there are many factors you need to consider before running an insurance policy. Some of which include your age, family, Lifestyle, or employment benefits. Below are the various types of Insurance:
- Health Insurance
- Car Insurance
- Life Insurance
- Home insurance
- Education Insurance
- Renters insurance
- long-term disability insurance
- Travel insurance
- Dental insurance
- Auto insurance
- Gap insurance
- Medical insurance
- Term insurance
- Public liability insurance
- Business insurance
The above listed and many more are the types and forms of Insurance. Each insurance policy comes with its own premium plan and benefits. You can opt-in for any of the above insurance and start enjoying all its benefits. However, if you feel insurance is expensive not having it could be far more costly.
Benefits of Insurance
We all know the main goal or importance of purchasing an insurance policy is for protection and relief in times of difficulty or problems. However, there are other reasons why you need to purchase an insurance policy whether, Health, Life, Auto, or accident insurance. Below are some of the benefits of insurance:
- Insurance helps to secure your future
- It serves as a financial back up at the time of emergency or problems
- Having an insurance policy will make your retirement more secure
- Insurance gives you peace of mind
Also, insurance helps to relieve you and your family of stress during a time of crisis. You might have everything going on for you well right now, but like they say life is unpredictable. Some unexpected circumstances might happen. As so running an insurance policy is very much vital.
Best Insurance Companies
In this part of the article, we will be looking at some of the best insurance companies in the world. But it is worthy to note that these companies Specialize in different lines of insurance. That is, they are well known for the type of insurance they offer. Below are some of the best insurance companies in the world:
- Berkshire Hathaway
- Ping An Insurance
- China Life Insurance
- State Farm Group
- Progressive Insurance Group
- USAA Group etc.
Aside from the above listed there are other top and best insurance companies in the world. You can search online for other best insurance companies.