Wise choice about infurance

We hear about insurance everyday in our life and it is related to our life closely. There are different types of insurances: Auto insurance, Home insurance, health insurance, Accident,Sickness and unemployment insurance, Casualty insurance, Life, property, liability and credit insurances, and etc.

1. What is insurance?
  Insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss in Law and Economics.
Not everyone will meet these accident and evergyone has the probility to get involved. That is where insurance comes. It gathers groups of people with a small amount of money and will spend it on those who meet the accident. So when people meet the difficulty,they could have elimination of the loss.

2. Who will need insurance?
    Good question. As everyone could have the probility to meed those unexpected difficulty or incident, everyone will need certain types of insurance to ensure that when something happens, they could reduce their loss.

3. What type of insurances do I need?
  As mentioned above, there are different kinds of insurances, and there are for different groups of peoples.

Auto insurance is for Vehicles and it provides property, liability and medical coverage:

1).Property coverage pays for damage to or theft of the car.
2).Liability coverage pays for the legal responsibility to others for bodily injury or property damage.
3).Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.

Home insurance provides compensation for damage or destruction of a home from disasters. In some geographical areas, the standard insurances exclude certain types of disasters, such as flood and earthquakes, that require additional coverage.

Health insurance, like other forms of insurance, is a form of collectivism by means of which people collectively pool their risk, in this case the risk of incurring medical expenses.

Accident, Sickness and Unemployment Insurance
Disability insurance policies provide financial support in the event the policyholder is unable to work because of disabling illness or injury.
Workers' compensation insurance replaces all or part of a worker's wages lost and accompanying medical expenses incurred because of a job-related injury.

Casualty insurance insures against accidents, not necessarily tied to any specific property.

Life insurance provides a monetary benefit to a decedent's family or other designated beneficiary, and may specifically provide for income to an insured person's family, burial, funeral and other final expenses. Life insurance policies often allow the option of having the proceeds paid to the beneficiary either in a lump sum cash payment or an annuity.

Property insurance provides protection against risks to property, such as fire, theft or weather damage. This includes specialized forms of insurance such as fire insurance, flood insurance, earthquake insurance, home insurance, inland marine insurance or boiler insurance.

Liability insurance is a very broad superset that covers legal claims against the insured. Many types of insurance include an aspect of liability coverage.

Credit insurance repays some or all of a loan when certain things happen to the borrower such as unemployment, disability, or death.


4. How to get insurance?
 Different insurance companies offer different insurances and they will have a detailed procedure about how to sign an insurance. The important things in to identify your risks in your life and choose the best insurance that suitable for you!