assurances and insurances

• Assurances


  Provision of cover for an event that will definitely happen
• Insurances


  Form of risk management where the insured pays a premium as protection for when things go wrong
• Insurance


  The insurance company guarantees to compensate (pay) you for a particular loss by fire, theft or accident
• Insurance policy

  The contract you sign
• Insurance

  Payment towards a form of indemnity (compensation) such as on a house and its contents damaged by fire or stolen property
• Types of Motor Insurance

  • Third party only
  • Third party fire & theft
  • Fully Comprehensive
• Types of Household Insurance

  • Buildings (covers damage to building only)
  • Contents (covers loss of/theft or damage to contents)
  • Liability (covers injury to people in and around the home)
• Household Insurance

  • Home owners and renters need protection against the possible loss of a home and its contents due to fire, vandalism, theft and natural disasters
  • Home insurance covers all possessions belonging to your house
  • A complete household inventory is extremely important. Every item should be listed when creating the policy. The list should include the original price and the current market value

  
• Types of Insurance

  • Motor Insurance
  • Household Insurance
  • Health Insurance
  • Travel Insurance
  • Business Insurance
  • Accident/Sickness Insurance
  • Life Insurance
  • Boat Insurance
• Life Insurance

  Upon death, the Insurance Company pays a sum of money to the policyholder's family. The younger and healthier, the cheaper the insurance
• Life Insurance

  • People purchase life insurance to limit the risk of financial loss if they should die
  • Life insurance is most important to people who are financially responsible for others
  • If the insured dies while the policy is in force, someone will receive a specified amount of money called the death benefit
  • The person receiving the money is called the beneficiary
  • The death benefit may be received in one lump sum or in monthly installments
• Life Insurance Policies

  • Term/Temporary – Insurance cover for a specific period of time (e.g. 5 years, 10 years). Benefits are only paid if the policyholder dies within the term. If s/he survives to the end of term, no money will be paid back
  • Permanent – Insurance cover throughout the policyholder's life. Premiums paid will remain at a fixed cost for the duration of the policy. This is also known as Life Assurance
• Life Insurance


  • Many people choose life insurance policies through an insurance agent who tailors the policy to meet their needs
  • Once the policy is written, the person is usually required to have a physical examination. The poorer the health of the insured person, the higher the insurance premiums and the greater the risk to the insurance company
• Assurance

  • Provision of cover for an event that will definitely happen
  • Assurance guarantees a cash sum if you die or are diagnosed as suffering from a terminal illness
  • Life assurance always results in a payment
  • If a person covered by life assurance were to die, then the insured sum would be paid out
  • Life assurance guarantees a sum of money to be paid on death
• Life Assurance


  • Can be considered a type of savings
  • Life assurance always results in a payment
  • When policy ends, the assured is given a sum of money
  • More expensive than life insurance
• Life Insurance

  • Suited to ensure that debts, such as a loans, are repaid in full in the event of the death
  • Benefits are only paid if the policyholder dies within the term
  • Payout amount is preset
  • Cheaper than life assurance