In this article we have to learn about the insurance industry or how to earn by insurance, or which factors are used by insurance companies in all over the world.
First of all we have to know about the basis of INSURANCE or how it works?
The answer is insurance is the annoying necessity that we all pay for to make sure we don’t end up in massive amounts of debts if our house burns down if we crash our car or if something tragic happens insurance help us maintain peace of mind knowing that even if something bad does happen someone else is going to pay for what It costs to fix it through to an untrained eye this can be a little perplexing I mean to say that if you pay 200$ per month for home insurance and after only 6 months unfortunately your home burns down the insurance will buy you a new house likely in the matter of hundreds of thousands of dollars but you would only given them 1200$ why will they do that?
That’s the power of insurance.
The concept of insurance is to insurer in exchange for protection against that risk when a bunch of people do the same thing for the same risk eventually the insurer is getting a lot of income but the probability of that risk happening is spread out among a bunch of people and stays about the same insurance companies make money by figuring out how much money is required for the investment in a month or in general its simple math but in actuality insurance companies have highly complex models for all of this.
How insurance companies work:-
Not even every company have the same insurance plans every company has its own eights to serve their services to their customers to ensure that they can make money insuring a profit if you estimated that 1 in 100 houses burned down each year but it was actually 5 in 100 then you’d lose money faster and faster there are many type of insurance companies from auto to health to life to homeowners most people in the world have these core insurance policies.
working strategy of insurance work:-
Some of which are legally required to be held like auto insurance you might be wondering though why wouldn’t you just want to save your money each month get to hold on to it in a bank account then if nothing bad happens you have a lot of money well while that may be true it makes you the one exposed to the risk if you put away 200$ a month for a year to save on home insurance you’ll have an extra 2400$ at the end of the year.
However if your house burns down the next year well you’re going to be out the few hundred thousand dollars that it’s going to take to fix it a pretty bad deal is that a risk you’re willing to take chances are it isn’t that’s why getting insurance is generally good thing is takes all of the risk and anxiety and financial burden off of you and puts onto a much larger company that can afford it when you understand insurance as just a way of paying a company to a assume your risk you can start understanding that insurance could in theory be offered on virtually anything.
Learn more about Insurance: Top 8 Insurance Companies in us
Are you worried that you while you’re toasting a cinnamon raising bagel your toaster will over heat one of the raisins causing it to burst into a spontaneous plasma and destroy your entire pantry full of stockpiled bags of lucky charms and backed beans well that’s oddly specific but someone could probably insure you for that exact thing likewise maybe you are so handsome or even you are a big celebrity that you hits somewhere unfortunately by an accident or any of other matter your company pay a money to you or even spend their money to your treatment.
- This isn’t too far reality either celebrities will often have parts of their body insured because their image is a source of their income.
Types of insurance:-
There are many types of insurance now at that time as follow.
- Insurance auto insurance.
- Insurance homeowners.
- Life insurance.
- Globe/business life insurance.
- Insurance disability.
There are lots of insurance types but we discuss major or most important types here so let’s start.
Insurance auto insurance:-
First of all we have to understand the word auto insurance so the name shows us.
The insurance in which we are talking about the auto-mobile vehicles or auto-mobile engineering.
When we drive a car at the limited speed which given by the wardens unfortunately our car brakes damaged they not worked or our car destroy by hit with other car so if you have an auto insurance you don’t worry about that the insurance company will be responsible to give you a brand new car by exchange of this damaged car but the condition is you fulfill their rules and regulations.
- I have added a question for u in this article these questions help you to complete understanding what is insurance?
So the Question is:-
- What happens if I get in a car accident?
When you have a beautiful house or even a mention you will have to insure your house safety with an insurance company after 6 month your house burned by circuit breaker or sparking you will not to worry just take a phone or call an insurance agent you will become the owner of the new house just like you want because you already insured your house or even in an natural disaster your house building burry in the surface our the earth you will have an new house or a building.
- What is Homeowner’s Insurance?
When you have to insure your business you will be able to pay the monthly percentage of your earning income you will be decided by the insurance agent or you will pay regularly whenever you want the money to invest in your business you will be able to apply loan in insurance company or your business is not good in work you will have to rebuild this by the different policies in insurance companies every country have their own policies or they act on it so if you want to more information you will visit bank or read their policies forms.
If you have to insure your life by company whenever unfortunately you will have an accident your left arm is totally damaged or you only work with one hand so the insurance company will be help you if u want it or you will need at this stage there are many other circumstances.
To be your life insurance just like you will a stunt man you will be in a stunt but you dead by this horrifying stunt the insurance companies pay the wealth of your life to your family.
In which part of life I have to make an life insurance?
When you are a normal person but unfortunately with any reason you will be on bed just like coma disease, heart attack, or physically disturbance, company will be able to pay you your disability insurance money to serve your life easily. This is called disability insurance Caused by your disability.
What is Disability Insurance?
- Is there future in insurance industry?
Yes! Absolutely the future in insurance industry due to the 60% people on earth is poor standard 30% percent people medium class or even 10% people are rich by the ratio of 100% so the insurance companies more than 55$ billion dollars earn every year or increased yearly basis.
In this article in my opinion I have to understand the basic of insurance industry more than 40 years to run the globally all over the world or every country have run their own policies or run their companies to insure other people demanded. So I hope so you will learn the basic concept of this whole article or examples make sure you solve these all question which is given according to topics.