Insurance

• Life insurance provides financial protection to beneficiaries in the event of the insured person's death.
• Health insurance covers medical expenses, including hospitalization costs, doctor visits, prescription drugs, and preventive care.
• Insurers are regulated by state insurance departments and must meet certain financial requirements.
• The insurer assumes the risk by paying premiums, while the policyholder receives protection against loss or damage.
• Insurance is the transfer of risk from one party to another.
• Insurance policies can be purchased through agents or directly from an insurance company.
• Insurance premiums are based on factors such as age, health status, occupation, lifestyle habits, and family history.
• An agent is licensed to sell products on behalf of one company, while a broker represents multiple companies and helps clients find the best coverage at the lowest cost.
• Premiums are paid regularly (usually monthly) and may increase over time due to inflation, age, health status, or other factors.
• Risk is the possibility that something bad will happen.
• An insurance agent represents multiple companies and helps clients choose the best coverage based on their needs.
• A broker acts as an intermediary between the client and several insurance companies to find the most suitable policy at the lowest price.
• Whole life insurance provides lifelong coverage with fixed premiums and guaranteed payouts.
• A risk manager identifies potential risks and develops strategies to mitigate them.
• Insurance is financial protection against possible loss
• Insurance policy sets out details of the types of losses covered and the amount of compensation to be paid
• Compensation is a financial payment made to an insured person if they suffer an insured loss
• Principles of insurance: insurable interest , utmost good faith , indemnity, subrogation and contribution
• insurable interest is to insure something that you will benefit from its existence and suffer financially from its loss
• Utmost good faith is to be truthful and honest when completing a form
• Indemnity is when the insured person shouldn’t profit from insurance
• Subrogation is when an insurance company pays compensation for an insured item the ownership of the item is passed on to the company
• Contribution is where the same risk is insured with more than 1 insurer they must divide the cost of the claim between them
• Third party: the minimum legal requirement for driving any vehicle on a public road
• No claims bonus: a discount on an insurance premium for a driver who hasn't made a claim in the previous 3 year that will make the next claim less expensive
• Loading : an extra amount added to the basic premium to cover increased risk
• Life assurance is the protection against a GUARANTEED future loss and pays out WHEN they die not IF