Types of Insurance

What is Insurance and how the Insurance company work

Insurance and its policy rate settings:

Insurance is a way of business where an individual can distribute his any kinds of risks and the insurance company take a certain risk by receiving insurance premium. the amount of premium is depends how much policy holders are taking the insurance policy. If the policy holder are large in amount the premium will decrease. Insurers use to calculate the policy holder risks by knowing the members risks condition.The insurance company pay a amount of money to their researcher who find out the approximate value of risks. On the way the insurance company include a certain expense on the premium.The insurance companies main profit is the premiums and the have minimum pay out for the policy holders who have affected by a loss which he had insurance.therefore the insurance company has to pay simple amount of money for loss because the affected policy holders are always few in numbers.

A simple example may help you to understand about this process. Think that a insurance is going to start a policy that will insure peoples valuable vehicles from theft. 1st they find out a statistics that shows that their policy members some are having luxurious cars and some have reconditioned cars. In this state they create a premium rule that is who are having luxurious cars their premiums will be more than those who have reconditioned cars. Assume that the company's policy holders in numbers is 10000.After having a statistics of the highest risks members will be 400 / their cars and will be stolen by thieves. then the average loss will be $7000.With this statistics the company can calculate that their payment will be $ 2.8 millions ($400*$70000) .Then the company spreads its losses over the 10000 policy members , and the premium for each members would be $280 ($2.8 million/10000 ) . the insurance company will add a amount that is their expense and allow for a reasonable profit and thus the premium will be set for each policy members.

However law of numbers explains insurance premiums in part . but not all 10000 premium holder stand in the same level of risks because of their cars variety and their security reasons . so that each holder are not in stand the same stage of risks . to give fair premium rate to policy holders the insurance company sets a premium rate based on the policy holders risks . So that is the reason why the life insurance for -sick,old,police,criminals premiums are high at rate and on the other side the young ,healthy people's premiums are low in rate . Ex-amply the foreign cars are attractive cars for theft . Some people are not have driving license and their premium rate are high .

Important Insurance types and source

The number of insurance company is show that the importance of the insurance . The (public) insurance companies transactions is approximately $7 trillion each year .

Public Sources :-

Public insurances are available to cover such losses as Unemployment , Pension and work -related accidents and injuries causing dis-ability , among other things .

Social security :

Initiated under the social security act of 1935 ,socil security is perhaps the best -known form of the public insurance . The official title of the program is Old age , survivors , Disability ,and their dependents are more eligible for retirements benefits .Life insurance ,Health insurance ,and disability income insurance.

Its tax taken out from employee's pay checks .Employers pay an equal and matching amount of tax to help cover benefits .

The benefits of social security includes :-

1. Payments for the loss of death ,including a small sum amount payment and continuations to spouses with dependent children .
2. Income payments for the disability of people at lest 12 month its total .
3. Retirements of govt. workers .
4. Hospitals and medical payments for the eligible persons at age 65 or over . This is the medicare program policy .

Types of insurance:
The following 70 pages are in this category, out of 70 total. This list may not reflect recent changes.
A

    * After the event insurance
    * Assumption reinsurance

B

    * Bancassurance
    * Bond insurance
    * Business overhead expense disability insurance

C

    * Casualty insurance
    * Catastrophe bond
    * Certified Marine Insurance Professional
    * Chargeback insurance
    * Community rating
    * Contents insurance
    * Crime insurance
    * Crop insurance

D

    * Death bond
    * Deposit premium
    * Deposit insurance

E

    * Earthquake insurance
    * Errors and omissions insurance
    * Expatriate insurance
    * Explanation of Benefits

F

    * FLEXA
    * Fidelity bond
    * Flood insurance

G

    * General insurance

   
G cont.

    * German Statutory Accident Insurance
    * Group insurance
    * Guaranteed asset protection insurance

H

    * Home insurance

I

    * Inland marine insurance
    * Insurance cycle

K

    * Key person insurance

L

    * Landlords insurance
    * Legal Expenses Insurance
    * Lenders mortgage insurance
    * Liability insurance
    * Lincoln Income Life Insurance Company
    * Loan protection insurance
    * Locked Funds Insurance
    * Longevity bond

M

    * Marine insurance
    * Medigap
    * Mortgage insurance
    * Mutual insurance

N

    * No-fault insurance

P

    * Parametric insurance
    * Payment protection insurance
    * Pension term assurance
    * Perpetual insurance

   
P cont.

    * Pet insurance
    * Phone insurance
    * Political risk insurance
    * Pre-paid legal services
    * Prize indemnity insurance
    * Professional indemnity insurance
    * Professional liability insurance
    * Property insurance
    * Protection and indemnity insurance

R

    * Reinsurance
    * Rent guarantee insurance
    * Risk equalization

T

    * TMSF
    * Terrorism insurance
    * Title insurance in the United States
    * Trade credit insurance
    * Travel insurance

W

    * Wage insurance
    * Weather insurance
    * Worker's compensation Germany
    * Workers' compensation

Z

    * Zombie fund