Today, in this article we are going to bring you close to the understanding of why you should make a decisive decision to get your life and (property) business indemnified/insured . But first, we shall have to consider what we mean by insurance coverage by simply asking these two related questions.
.What do we mean by insurance, or what defines insurance coverage/indemnity?
.What Do We Mean By Insurance Coverage?
Insurance coverage here by definition, may be simply seen as the liability or amount of risk covered for an individual or organization by means of insurance contracts. The two Major Insurance coverage such as life insurance and auto insurance
are issued by an insurer in the promise to compensate the insured in the event of accidental loss, death , illness or any other forms of
of unpredictable occurrences.
.Auto Insurance coverage:
Auto Insurance premium is determined by the insured person’s driving history or record. If his/her driving record has no accidents or serious traffic law violations, this will usually result in a lower premium. But drivers with many records of serious traffic law violations or accidents may be mandated to pay higher premiums. Moreover, because less-experienced drivers, especially those below the age of 25 tender to have more accident histories and traffic law violations, the insurers typically charge them more than
mature drivers who have fewer or no accident history .
The auto insured individual premium rate is also determined by his driving mileage. For example, if the insured drives his car for work or typically covers long distances driving, he will pay more for his/her auto insurance premiums, because his long distance driving in the same way increases his chances of getting accidents. Individuals pay lower premiums, who do not cover long distances driving to work as those specified herein.
Usually due to higher chances of accidents, theft and vandalism in the metropolis, drivers seem to pay higher insurance premiums than those in the rural areas. And, this conditions, however, also takes into consideration other factors varying among states, which include auto insurance fraud, medical care, cost and frequency of lawsuit, weather conditions and cost of repair
Insurance coverage,however, touches other various parts of human life and properties, as there could be many insurance contracts made available by the insurance companies other than these two major ones explained aboveall of which for want of time and space may not be listed here:
(¡) Good student Discount insurance:
This form of insurance coverage is an auto insurance policy discount made available to young drivers who earn good grades during their schooling period.
(¡¡)Medical Payments Coverage MedPay:
Medical payments insurance coverage is an additional insurance provision to an individual’s auto insurance contract and as an additional insurance policy it covers all medical expenses that has resulted from auto accident for every individual in his/her car.
(¡¡¡) Final expense insurance coverage:
This is a life time insurance policy that is easier to get approved for but has a small death benefit.
Life Insurance Coverage:
What Is The Importance Of Insurance
Coverage To the Person Insured?
Insurance coverage as a safeguard policy measure adopted to protect an individual against unpredictable loss of life and property, helps its consumers recover financially from unforeseen events, such as the loss of an income earner of the family, car accident and fire hazards over valuable properties
.What Factors Determine Your Insurance coverage Premium?
Usually, most insurers charge higher premium for young drivers, because they based this on the assumptions that the likelihood of young men to be involved in an accident is generally higher than that of the more experienced married men.
The determination of an individual’s life insurance premiums, however, will largely depend on his/her age by the insurer. Younger individuals are usually required to pay lower life insurance costs, because their remaining life span is longer than the older individuals.
The Role of Gender In The Determination of An Individual’s Life insurance Costs:
Men pay higher Premiums than the women, because women tend to live longer. Men on the other hand, tend to engage in more risky activities leading to death, which increases their insurance costs/Premium.
The Role Of The Medical History of An Individual:
The medical record of a chronic disease associated with the individual or family, such as cancer, diabetes and heart disease, often results in paying higher insurance costs, whereas individuals who are in good health pay lower life insurance premiums.
Individuals who are expected to have more longer days to live have a longer insurance policy term and a huge death benefits. A 40 year old individual with life insurance coverage expects lesser death benefit compared to a 20 year old individual who has more years to live with less risk of dying soon.
Insurance coverage enables its consumers recover quickly from financial losses and stay secured against unforeseen events, such as death of the income earner of the family, loss of insured valuable properties and car accidents.
Valuable properties are quickly recovered if placed under insurance Liability. This Insurance Coverage, however, enables the insured individual to be protected against loss of his/ her property, damage to the property or injuries done to people by the property.