What is An Insurance Premium ?:

Insurance Premium:

credit: insurenters.com

When you take an insurance plan from any insurance company, then according to the agreement you have to pay a certain amount to the insurance company, and in return insurance company will give you a written guaranty for covering certain risk factors. That certain amount, which is paid by you to the insurance company is called insurance premium.

Insurance Companies offer different premium paying options to the insured person. In maximum insurance plans, there is always a option of paying the premium in installments.

So whenever you take an insurance plan, make sure you have read the conditions of plan carefully. You should also pay your premium on time, so that you could get best benefits from your insurance plan.

Importance of Insurance & Major Insurance Plans

Insurance:

It is a legal contract between an insurance company and a person, where the person agree to pay a specified premium to the company and in return company provides a guarantee of compensation on specified casualty, loss, disease and on accidental death.

Why insurance is important?:

Every person in this world faces positives & negatives in his/her life. There is always a risk factor in everyone's life. To reduce such risk factors one can insure the things. There are many insurance companies, which provide the guarantee of compensation. Although it is not possible to insure everything but insuring major things & assets is beneficial.

Here are some major & important insurance plans one can take:

• Life insurance
• Auto insurance
• Home insurance
• Health insurance   

Life insurance: When a person takes a life insurance plan then the insurance company provides a life cover to that person. Suppose there is a person who have taken a life insurance plan and timely pay premium to the insurance company. If the insured person dies accidentally then the insurance company will provide the specified compensation to the nominee of that insured person. So whenever you take a life insurance plan you should also declare a nominee of yours. Nominee can be any person in your relation.

Insurance companies also provide many insurance plans with life cover & good returns.

Auto Insurance: When you take an auto insurance plan for your vehicle then the specified accidental damage of vehicle will be covered by the insurance company. You will have to pay the premium on time and the insurance company will cover the risk factor for you.

Home Insurance: In case of a home insurance, if some damage happen to your house accidentally then the insurance company will pay you the compensation.

Health insurance: You have to pay certain premium to the insurance company and in return company will compensate your medical expenses.

Note: Please read the "term and conditions" of particular insurance plan carefully, whenever you take any insurance plan.