TYPE OF INSURANCE CONTRACTS

Insurance is a contract by which,  a person, the insurer, covers the risks that another person, the insured, may encounter in exchange of an amount of money, the premium.

In other words, Insurance is a sort of risk management used to lower to the maximum the losses that could happen in case of an event.

there are many types of insurances, but we will talk only about the more important: car insurance, life insurance and health insurance.

Car Insurance: This is the most used insurance in the world. Anyone owning a car should subscribe a car insurance to cover the risks of driving a vehicle. This insurance covers medical expenses for the drivers and passengers in case of an accident, and also for victims of these accidents. This contract could cover too expenses in case of a law suit or if the car is stolen. the premium in this type of insurances is based on the driver condition (age, health condition, prior accidents) and the car condition.

Life insurance: Life insurance is contracted to make relatives of a person make some revenue when that person is dead. This revenue could be served to the family of a dead man either as a whole one time amount, or in a monthly basis. This type of coverage is contracted by persons who have little children with no one to work for them in case of a death. The premium in this case is based mainly on the person’s health condition and age.

Health insurance: It is mainly subscribed to cover health expenses in case of a disease. It covers the hospital costs, medicines and sometimes, it could even cover the salary for the period spent in the hospital. About the premium, it depends on what type of expenses that are covered and how many persons are protected by the contract.

Other types of insurance are used like home insurance, credit insurance, casualty insurance…

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