Insurance is taken for just compensating the loss.

In life insurance, your family will be protected against the financial loss in case they lose you.

In case of general insurance, you will be compensated the loss due to damage of the item insured like (vehicle, home or health as the insured item)

1. A variety of employer-paid and government sponsored programs, generally cost-free to the recipient, covering certain categories of workers.
2. Private policies (paid for by individuals) that protect income when there are no applicable employer or government programs or when those programs do not adequately meet income needs.

As with all insurance, disability income insurance operates on the principle that many people pool small sums of money to benefit those who need help. The beneficiaries are people who need adequate income should they become disabled.

1. Flight Accident AD&D insurance pays a benefit only for accidents involving an airplane during the coverage period.
2. Common Carrier AD&D insurance pays a benefit only for accidents involving a common carrier during the coverage period.
3. 24-Hour AD&D pays a benefit for accidents that occur for any reason during the coverage period.

AD&D is often included with Travel Medical insurance and Trip Protection plans, but unlike baggage insurance and trip cancellation insurance, it is also sold separately.

"Common Carrier" means any licensed land, water, or air conveyance operated by those whose occupation or business is the transportation of persons without discrimination and for hire (e.g., airplane, train, bus, subway, tram, ferry, cruise ship, taxi, limo, etc.).

AD&D insurance usually covers Terrorism, but some plans require the payment of additional premium for a Terrorism Rider. War is usually excluded, but War Risk AD&D insurance is available at a high cost, and you must complete a special application with details about your trip itinerary and activities.

1. Straight Term: The insurance premiums and benefits remain constant throughout the term of the policy.
2. Renewable Term: Can be renewed every time the coverage period lapses, irrespective of the status of the person’s health. In this policy, one can opt for annual renewable term, wherein the policy is taken for a year and is renewed annually for a total term ranging from 10 to 30 years.
3. Level Term: Ensures a fixed premium until the end of the policy period, which can range from five years to 30 years.
4. Decreasing Term: The amount for which you are insured falls over the course of the term of the policy. The premium, however, remains constant. This term policy is used when one needs to protect mortgage or income.
5. Convertible Term: Can be converted from a term policy into a permanent one.
6. Adjustable Premium: Allows insurance companies to offer lower premiums using less conservative estimates of mortality and administrative and interest costs.

1. Indemnity - The payment of monies to the insured to cover the loss. This is also known as a "Cash payment".
2. Repair - Payment to a repairer to fix the damaged item or property. \
3. Replacement - With new items, property, or items that are likely to suffer very little depreciation, the insurer may choose to simply give the insured a new item that is the same as the one that was lost. This can be beneficial to the insurer, especially if they can obtain a discount from the supplier.
4. Restoration - Typically this means the restoration of the item or property to the condition that it was in immediately prior to the loss.
5. New For Old - the substitution of a new item that acts the same way as the item that was lost or damaged.

It is important to check the policy schedule and understand in which way claims on a specific policy will be settled. Marine Insurance or marine-related insurance policies have long and complex claims procedures that are best left to experts.

1. Single Parent Captive - is an insurance or reinsurance company formed primarily to insure the risks of its non-insurance parent or affiliates.
2. Association Captive - is a company owned by a trade, industry or service group for the benefit of its members.
3. Group Captive - is a company, jointly owned by a number of companies, created to provide a vehicle to meet a common insurance need.
4. Agency Captive - is a company owned by an insurance agency or brokerage firm so they may reinsure a portion of their clients risks through that company.
5. Rent-a-Captive - is a company that provides 'captive' facilities to others for a fee, while protecting itself from losses under individual programs, which are also isolated from losses under other programs within the same company. This facility is often used for programs that are too small to justify establishing their own captive

Two other types of insurance companies which have developed recently are special purpose vehicles (SPV) and segregated portfolio companies (SPC):
SPV - Although used extensively in the past for various financing arrangements, recently they have been used for catastrophe bonds and reinsurance sidecars.
SPC - SPCs can be formed as a rent-a-captive facility to enable those companies who lack sufficient insurance premium volume, or who are averse to establishing their own insurance subsidiary, access to many of the benefits associated with an offshore captive

Social insurance is any government-sponsored program with the following four characteristics:
the benefits, eligibility requirements and other aspects of the program are defined by statute;
explicit provision is made to account for the income and expenses (often through a trust fund);

1. it is funded by taxes or premiums paid by (or on behalf of) participants (although additional sources of funding may be provided as well); and
2. the program serves a defined population, and participation is either compulsory or the program is heavily enough subsidized that most eligible individuals choose to participate.
3. Social insurance has also been defined as a program where risks are transferred to and
4. pooled by an organization, often governmental, that is legally required to provide certain benefits.

In the U.S., programs that meet these definitions include Social Security, Medicare, the PBGC program, the railroad retirement program and state-sponsored unemployment insurance programs. The Canada Pension Plan (CPP) is also a social insurance program.

Political risk insurance is a type of insurance that can be taken out by businesses, of any size, against political risk—the risk that revolution or other political conditions will result in a loss.
Political risk insurance is available for several different types of political risk, including (among others):

1. Political violence, such as revolution, insurrection, civil unrest, terrorism or war;
2. Governmental expropriation or confiscation of assets;
3. Governmental frustration or repudiation of contracts;
4. Wrongful calling of letters of credit or similar on-demand guarantees; and
5. Inconvertibility of foreign currency or the inability to repatriate funds.

As with any insurance, the precise scope of coverage is governed by the terms of the insurance policy.
The underwriting of political risk insurance is a dynamic, growing business. As globalisation increases, there are more corporations doing more business in more places around the world with each passing year. Some of the changes occurring in the business are high growth, new product offerings, and a greater role for private capital.
While political risk insurance policies are sometimes manuscripted for specific situations, the major political risk insurers have standard forms for the coverages that they issue.

1. A large number of homogeneous exposure units. The vast majority of insurance policies are provided for individual members of very large classes. Automobile insurance, for example, covered about 175 million automobiles in the United States in 2004.The existence of a large number of homogeneous exposure units allows insurers to benefit from the so-called “law of large numbers,” which in effect states that as the number of exposure units increases, the actual results are increasingly likely to become close to expected results. There are exceptions to this criterion. Lloyd's of London is famous for insuring the life or health of actors, actresses and sports figures. Satellite Launch insurance covers events that are infrequent. Large commercial property policies may insure exceptional properties for which there are no ‘homogeneous’ exposure units. Despite failing on this criterion, many exposures like these are generally considered to be insurable.
2. Definite Loss. The event that gives rise to the loss that is subject to the insured, at least in principle, take place at a known time, in a known place, and from a known cause. The classic example is death of an insured person on a life insurance policy. Fire, automobile accidents, and worker injuries may all easily meet this criterion. Other types of losses may only be definite in theory. Occupational disease, for instance, may involve prolonged exposure to injurious conditions where no specific time, place or cause is identifiable. Ideally, the time, place and cause of a loss should be clear enough that a reasonable person, with sufficient information, could objectively verify all three elements.
3. Accidental Loss. The event that constitutes the trigger of a claim should be fortuitous, or at least outside the control of the beneficiary of the insurance. The loss should be ‘pure,’ in the sense that it results from an event for which there is only the opportunity for cost. Events that contain speculative elements, such as ordinary business risks, are generally not considered insurable.
4. Large Loss. The size of the loss must be meaningful from the perspective of the insured. Insurance premiums need to cover both the expected cost of losses, plus the cost of issuing and administering the policy, adjusting losses, and supplying the capital needed to reasonably assure that the insurer will be able to pay claims. For small losses these latter costs may be several times the size of the expected cost of losses. There is little point in paying such costs unless the protection offered has real value to a buyer.
5. Affordable Premium. If the likelihood of an insured event is so high, or the cost of the event so large, that the resulting premium is large relative to the amount of protection offered, it is not likely that anyone will buy insurance, even if on offer. Further, as the accounting profession formally recognizes in financial accounting standards, the premium cannot be so large that there is not a reasonable chance of a significant loss to the insurer. If there is no such chance of loss, the transaction may have the form of insurance, but not the substance
6. Calculable Loss. There are two elements that must be at least estimable, if not formally calculable: the probability of loss, and the attendant cost. Probability of loss is generally an empirical exercise, while cost has more to do with the ability of a reasonable person in possession of a copy of the insurance policy and a proof of loss associated with a claim presented under that policy to make a reasonably definite and objective evaluation of the amount of the loss recoverable as a result of the claim.
7. Limited risk of catastrophically large losses. The essential risk is often aggregation. If the same event can cause losses to numerous policyholders of the same insurer, the ability of that insurer to issue policies becomes constrained, not by factors surrounding the individual characteristics of a given policyholder, but by the factors surrounding the sum of all policyholders so exposed. Typically, insurers prefer to limit their exposure to a loss from a single event to some small portion of their capital base, on the order of 5 percent. Where the loss can be aggregated, or an individual policy could produce exceptionally large claims, the capital constraint will restrict an insurer's appetite for additional policyholders. The classic example is earthquake insurance, where the ability of an underwriter to issue a new policy depends on the number and size of the policies that it has already underwritten. Wind insurance in hurricane zones, particularly along coast lines, is another example of this phenomenon. In extreme cases, the aggregation can affect the entire industry, since the combined capital of insurers and reinsurers can be small compared to the needs of potential policyholders in areas exposed to aggregation risk. In commercial fire insurance it is possible to find single properties whose total exposed value is well in excess of any individual insurer’s capital constraint. Such properties are generally shared among several insurers, or are insured by a single insurer who syndicates the risk into the reinsurance market.

1. The main question is that why should someone purchase an auto insurance?
2. If you owe a loan for your auto you need to make a purchase of some amount from the auto insurance.
3. In case you face some loss of property and have received some physical injuries in some road accident, faced some losses from natural calamity, or experienced burglary then the auto insurance covers the expenses for the above mentioned circumstances.
4. You need to make a minimum payment as a legal responsibility and it is applicable in every state. And it entirely depends on the different rules and regulations of the state whether forms of auto insurance coverage has to be put into use or not.

Liability coverage pays for your legal responsibility to others for physical injury or property damage. Insurance is independently regulated by each state. According to the state government you have to purchase some amount from the below given forms of liability coverage:

1. If you have an uninsured/underinsured insurance means that if you have met with an accident which is caused by someone else, and they do not have the insurance to cover the damage, you can file a claim with your insurance company asking for the compensation. It entirely depends on the amount of the coverage you have and your insurance company can make out the difference. This can save you from complete financial loss just in case you have a major accident.
2. Property damage liability is the coverage for the responsibility to pay the damages of another person for the loss or destruction of the person’s property. It also includes the coverage to reinstate the auto.
3. This liability covers your property if you are involved in a case of a death of a person in an accident or for a physical injury to any person.

There are types of coverage and it can vary from state to state.

Personal Injury Protection is an insurance coverage for the medical reasons that you receive from an auto accident. This covers your medical expenditure.

Collision Insurance coverage makes a payment for the damages that has been caused to your vehicle in some accident.

Comprehensive insurance coverage assists you to make a payment for the losses that are incurred by flood, fire, theft or any natural calamity.

Deductibles- The deductible is the amount you must pay toward a claim before your insurance begins to pay.

The factors such as getting physically injured or damage to your tangible property are expelled from your policy statement. This also includes situations where you have damaged or trying to hurt anybody.

There are some of the important factors that you can’t deny and which also affects the premiums you pay for your auto insurance like- the parking place of your car, the model of your car, how old are you, name of the state where you reside, and your driving history. These factors are important but following are some of the important points which can minimize your insurance premiums:

1. It is very important to keep your driving record clean to have a lower insurance premium.
2. By increasing your deductible amount
3. By providing proper parking space for your vehicle
4. Abolishing additional insurance like the labor cost and insurance for the rent from the auto insurance.
5. You should not prefer those vehicles which can easily get stolen or which has costly maintenance.
6. Don’t hesitate in inquiring about some discounts you can get for your auto insurance like- if your car mileage is low then ask about for any premium decrease which is done for some specific miles and also for various anti theft gadgets.

1. A life insurance plan is the best suited for those who are employed and will get retire after a specific time period. Taking a suitable life insurance plan will provide you to save an extra amount for your post-retirement.
2. It will be beneficiary for your family as it will assist them financially to meet the day to day expenses after your death. It will also help them to pay off any outstanding loans.
3. To make a payment for your children’s studies and future prospects.
4. Life insurance plan gives you the liberty to make a payment for your medical expenses, paying off your property taxes, and the cost incurs for the memorial service in case of your death.

Who all can make use of the life insurance plans?

1. You can make use of the life insurance plan if you have your own trade and want to invest in it.
2. You have a large amount of monetary funds
3. You have children at home and after your death to take on the expenses of their future education..
4. You have your parents at home and they are very old to take care of themselves and are dependant on you..
5. life insurance plan is important if you have a spouse and he/she is not earning.

The question arises that how much life insurance is needed by you? The main law of determining the need of life insurance is to plan for ten times of the total salary of your family. You have to decide how much is the need and the price of your coverage is decided according to your needs and requirements.

It is better to evaluate and review the existing rates and then opt to buy any life insurance plan. It is always better to check the credibility of the insurance company. It should have a decent status in the market. You can take the help of the internet in searching the best insurance providers, suitable rates, and their credibility. If you have a fixed budget the best option to opt will be of life insurance. This plan is as simple it can get where you borrow a certain coverage amount for a fixed time period.

There are other forms of the life insurance but they are costly and they are- cash value and whole life. These types of life insurance plans are very difficult and confusing. So it is recommended to go for the life insurance which is simple and the safest method. It is different from term insurance.

1. Your insurance plan should be able to cater any maternity related issues (if any). Make sure that you get the service for midwives who will take care of you.
2. You should ensure that you are getting all benefits for your medicines.
3. Make a schedule for regular check-ups with your physician. You should be consulting your physician on regular intervals for developing good preventive healthcare assistance.
4. Having a treatment for the mental problems and complications. A good health insurance provides you with all the medications relating to the drug abuse or alcoholic complications.

What will be the price that you have to pay?

There are some supplementary costs that will add on just in case you have kids and they are regular visitors to the physician. While deciding for some health insurance plan make sure that do you have to make a payment for the following:

1. Coinsurance is a payment which is a percentage of all the deductions made in your total medical bill.
2. It is an amount that you have to pay yearly for your medical expenditure. It has to be done before an insurance agency start paying claims for it. It is usually witnessed in the insurance plans.
3. This amount is usually required by health maintenance organizations and it is a specific amount that you have to pay for every medical visit you make with the physician.

The choice is up to you whether you want to have a health insurance plan by having an association with some school, clubs, or probably some social organizations. And the most convenient of them all having your individual health insurance plan. The advantage for having individual health insurance loan is that you can make any suitable alterations in your physical schedule according to your needs.

The most suitable health insurance plan is the one where you can get more lenient guidelines with the minimal price. Following are some points you need to keep in mind.

1. It is very important to accumulate all the information and the credibility of the company or any financial institution.
2. The health insurance plan also should comprise of all the health related facilities that are required by you.
3. Make sure that will you get the services from the physicians you are currently seeing.
4. Make an enquiry about your health insurance plan includes family and personal treatment.