Insurance

        


   Insurance is an agreement where the person or their unit get the support or coverage of the losses they bear from the company of the insurance.

It is the contract with policy holders to protect with interest against risks on payment of agreed premium.

Insurance exist to overcome the outcomes of disadvantageous and unexpected happening.

It is the cooperative and protective device to spread the loss caused by a particular risk over a number of people who are exposed to it and who agreed to insure them against that risk.

   History of insurance

- Insurance had been known in different from for many centuries and in the Greek and Roman civilizations a type of insurance prevailed whereby everyone was made to contribute according to his ability to pay.

-Insurance as we know today was developed into a business due to the rapid expansion of trade from Europe to all parts of the world and the serious loss being sustained by merchants to their ships.

-Later on, joint stock companies as underwriters at loyds were founded and it is still in business today although the insurance office was incorporated in 1710.

-There are thousands of insurance companies throughout the world that provide reinsurance to spread risk.

  Two types of insurance are:

1. Life insurance

2. Non life insurance

- Life insurance:

      Life insurance insures against death on payment life insured premium. It pays the beneficiary of the life insurance policy in the event of the death of the insurance .The life insurance will pay a fixed amount of life insurance premium as per agreement and the policy holder is paid at the time of death or at the expiry date.

 Types of life insurance are:

- Whole life insurance:

       It is also known as cash value or permanent policies and they combine an insurance features with a saving feature.If a person is unable to save without a 'forced' saving, plan, whole life insurance may be desirable.

- Term life insurance:

       It is also called temporary life insurance policy.A term life insurance policy is renewed annually at an increasing premium.

- Universal life insurance:

       It is also known as flexible premium life policy.The  key element of universal life key element of universal life insurance policy is the flexibility of the premium for the policy owner.

-Fixed period annuities:

     It is a fixed amount of cash to be received every year for a given period of time.Life insurance can offer different annuities policies.