FAQ

Insurance is a financial arrangement where individuals or businesses pay a premium to an insurance company in exchange for coverage against specific risks. If the insured event occurs, the insurance company provides compensation or financial support.

There are various types of insurance, including:
Life Insurance: Provides a payout to beneficiaries upon the insured person’s death.
Health Insurance: Covers medical expenses and healthcare costs.
Auto Insurance: Provides coverage in case of vehicle accidents or damage.
Home Insurance: Protects against property damage and liability related to the home.
Property Insurance: Covers damage or loss of property other than homes.
Travel Insurance: Offers coverage for travel-related issues such as trip cancellations and medical emergencies.
Business Insurance: Provides coverage for businesses against various risks.

A premium is the amount of money an individual or business pays to the insurance company in exchange for insurance coverage. It is usually paid on a regular basis, such as monthly or annually.

A deductible is the amount of money the insured person or business must pay out of pocket before the insurance coverage kicks in. Higher deductibles often result in lower premium costs.

A claim is a formal request made by the policyholder to the insurance company for compensation or coverage when an insured event occurs. The insurance company assesses the claim and provides reimbursement if approved.

An insurance policy is a legal contract between the insured and the insurance company that outlines the terms and conditions of the coverage, including the extent of coverage, premium amounts, and any exclusions.

Exclusions are specific situations or circumstances that are not covered by the insurance policy. It’s important to understand what is not covered before purchasing a policy.

When an insured event occurs, the policyholder contacts the insurance company to initiate the claim process. This involves providing details about the incident, submitting required documentation, and working with the insurance company to assess the claim.

Term life insurance provides coverage for a specific period (term) and pays out a death benefit if the insured person passes away during that term. Whole life insurance, on the other hand, provides coverage for the entire life of the insured person and often includes a savings or investment component.

Insurance provides financial protection and peace of mind by helping individuals and businesses manage the risks associated with unexpected events. It can provide financial support during times of crisis and help cover medical expenses, property damage, legal liabilities, and more.