What is Insurance and how Does it work?

Insurance is a contract agreement that provides protection for individual or organization against unforeseen events.

The truth is that the world we live in is full of uncertainties, no body know what the next minutes hold. In order to protect ourselves from these unexpected events, the business world introduced Insurance so that we can be covered against unexpected events that may come our way in our businesses, health and life in general.

protecting ourselves is not easy, so in order to be on a safer side, we reach an agreement usually inform of a contract agreement with an insurance company to help us do the dirty job.

What are Importance of Insurance to an Individual?

  1. provides safety and security to an individual.
  2. Anyone can fall a victim of critical illnesses, health insurance is a policy that protects individual against any type of health risks.
  3. Insurance companies helps to grow the GDP( Gross Domestic Products) of a country, there by promoting economic growth of that country.
  4. They also provides employment/job opportunities.
  5. Reduces risks and provides peace of mind to an individual and businesses.

Types of Insurance Policies

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There are many types of Insurance Policies offered by different Insurance companies. The type of services you are looking for would determine the type of policy to sign up for. As we always advice you on my mytmoro.com, make research to know the type of policy that suit the kind of service you are looking for.

Here are some major policies offered by Insurance companies

  • Life Insurance policy plan
  • Business Insurance policy
  • Investment Insurance Policy
  • Car/auto Insurance policy
  • Aviation Insurance policy
  • Health Insurance policy
  • Home Insurance Policy
  • Engineering Insurance policy
  • General Insurance Insurance

How to Get Insured

Insurance is what we all need to sign up for, the process below will guide on how to sign up for insurance from start to finish.
  • Pick a policy or services you wish to be covered.
  • Make research to find out the insurance company the offers the kind of policy or service you need.
  • Get the company’s requirements of the policy you picked
  • If you meet the company’s requirement, sign up through their online platform or Contact the company’s agent via their online platform or better still visit the company’s physical address and get yourself registered.

Frequently Asked Question

What is Premium in Insurance?

Premium is a price of a particular insurance policy usually expressed as a monthly or yearly cost. Premium is usually determined by an insurance company based on the risk associated to the policy you signed up for. Different Insurance companies may charge different Premium for similar policies.

What is Policy in Insurance?

Policy is a proposed service an Insurance company agrees to give its customers. It is a plan of what to do in a particular situation that has been officially agreed between an Insurance company and their clients.

What is Policy Limit in Insurance?

Policy Limit is the maximum amount an Insurance company can pay on a single policy in the event of lost or damages associated to that particular policy.

What is Deductible in Insurance?

This is the amount a policy holder must pay to the insurance company before claims are paid. Deductibles is usually calculated based on each policy or sometimes per claim depending on the insurance company.

What is Claims in insurance?

Claim is a written request to an insurance company to pay you the agreed sum in the event of any lost or damages to the policy you signed up for.

Related Article: Which insurance company is the best in Nigeria

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