Life is full of surprises, some of which are pleasant and some of which bring us what we do not desire, and we are all exposed to the same risks or difficult circumstances. There is no doubt that humans are vulnerable to accidents, and every accident has its own financial losses, whether treatment expenses, car repairs, or the costs of purchasing replacements for lost or damaged items. resulting from the accident, but we want to avoid it happening even if it costs us money to do so. Since an accident is possible, you can compensate for the damages resulting from it, and from here the idea of insurance appeared.
What is the concept of insurance?
The principle underlying insurance activity is very simple, as it involves a group of individuals paying money on a monthly or annual basis to insurance companies to compensate for the damages resulting in the event of an accident or other risks to one or more of these individuals. This company is called the “insurance company,” and the customer is called the “insured” or “insurance policyholder,” while the contract is called the “insurance policy,” and the fees paid by the policyholder are called the “insurance premium.”
Insurance is nothing but an agreement with specific results, as people participating in insurance solutions are completely certain that the amounts they pay in the form of installments will compensate them for unexpected accident damages, which provides them with peace of mind and confidence to continue with their investment projects, and enjoy travel and trips, in addition to To implement long-term plans such as buying a new home, etc.
For an insurance company, the incidence and cost of accidents can be accurately calculated due to the large size of the customer base. The method of calculating these costs is called actuarial science (or insurance calculations), which ensures that the insurance company agrees that the fees charged to the client are consistent with the size of losses and the rate of their occurrence.
Types of insurance
The idea of preparing for unexpected expenses is natural and dates back to ancient Babylon. Types of insurance coverage have diversified to include countless types of risks, including property insurance against fires, theft, weather disturbances, or earthquakes. Types of insurance also include business interruption insurance that protects businesses against all risks that may lead to temporary closure and thus business interruption. In addition, there are life insurance plans where the policyholder’s family receives the insurance value upon his death, and there is also health insurance to cover medical expenses.
Another form of insurance that represents a large segment is liability insurance, which are insurance programs against damages caused by the insured to another party. For example, car insurance is not limited to repair expenses only, but includes damages and losses caused by the car during the accident. The purpose of liability insurance is to protect companies of all types and individuals from financial or legal costs as a result of their mistakes.
There are also different types of insurance for specific fields, including marine, financial, construction, sports and entertainment, etc., which have led to the establishment of insurance companies for the insurance sector, which are called reinsurance companies.
What is the way to obtain insurance service?
There is one way to obtain any insurance service, despite its different types. Any person or company seeking insurance fills out an application for the service, which allows the insurance company to evaluate the risks associated with the applicant. For example, smokers pay higher health insurance premiums than non-smokers, and skydivers pay more than normal people when applying for life insurance. The insured will obtain a contract, an insurance policy, that includes the conditions under which he will receive compensation, and in the event that he is exposed to any accident or loss, he will submit a claim to the insurance company, so that the compensation officer will evaluate the value of the losses and ensure that they are included in the insurance policy, and after verifying the The insurance company pays the value of the claim.
Do you need insurance?
Of course, few of us have enough money to cover the risks and accidents that may occur in our lives, and even if you are able to do so, the best way to rationalize costs is to pay in monthly installments. Below are the most important reasons why you should obtain insurance services.
1- Maintain your health and the health of your family
It is known that obtaining good health care is very expensive and may sometimes cause you to spend your entire savings, so obtaining a health insurance service will organize your family’s health care expenses in the form of regular payments. In addition, it will allow you to have annual medical check-ups and contribute to the prices of your daily medications. If you contract with one of the reliable insurance companies, you will obtain high-quality health care services from a wide network that includes the best doctors and hospitals throughout the Republic.
2- Maintain your family’s lifestyle
We always focus on meeting the daily financial needs of our families, but it is also necessary to secure their financial future, and therefore you must obtain an insurance service because it preserves for you and your family the lifestyle you desire, in addition to providing the necessary protection against any financial deficiency as a result of emergency events such as stopping… Work, or provide alternative income in the event of physical disability, injury or death.
3- Protect your property
It is necessary to provide the necessary protection for your most valuable and important possessions, such as your car, your home, or your company’s buildings, so property insurance will cover the costs of repairing or renovating these and other properties in the event of theft, fire, or any other accident. Insurance can also pay for repairs and maintenance.
4- Investing in the future
If you love planning, you are thinking about securing your future needs, such as obtaining an income that you can rely on after the end of your successful career, and if you are a head of family, you will definitely want to secure the needs of your children.