What do you mean by Insurance Policy Types, Benefits and Uses of Insurance Policy

What do you mean by Insurance Policy? Explain Its Types, Benefits

Insurance Policy

There is a huge market of self-employed workers who have had no insurance cover. It is often the case that there are no cover, but there are various options for self-employed workers which would suit them.

If you’re self-employed, insurance is a question you may have to address in your small business. This is a fantastic question and this article will help you put it into context, and by extension, your business.

The key term here is protection. Insurance is the ability to protect against risks and harm that can come your way if something goes wrong. Insurance companies provide this for you, and the more cover you have, the more competitive you can become in your market.

And while there’s no one way to measure the amount of coverage you need, you need to be aware of the legal obligation to have an insurance cover in England.

Types of Insurance Policies


 Everyone has at least one life insurance policy they need to know about.

Every business needs to protect itself from risks it cannot avoid, and one of the best ways to do that is to have a policy that will generate regular income. The following are the top three types of insurance policies:

 Homeowners:  If you own a home you need to have liability insurance. It is called liability because if a person were to die in your home due to negligence, you could be held responsible for the full cost of their funeral. However, you need to check with your local government to see what kind of liability insurance they offer.

Collision: This is insurance to protect your car in the event of an accident. Although it is a “Collision” policy it doesn’t replace your actual insurance. Instead, it will pay to repair damage.

Business: Just like with homeowners insurance, you will need a commercial insurance policy to cover specific risks. It covers the needs of a business, such as damage that is caused by theft or flooding, to name a few.

The most important thing to remember is that you need to find the right insurance policy for you.


Benefits of Insurance


 You must be familiar with the basics of personal Health Insurance in Nigeria, if you are to buy a policy. Here are the things you must know, which may help you make an informed decision on what to buy.


 The Basics of Personal Health Insurance

 The main purpose of personal health insurance is to provide financial protection against specific costs incurred by a policyholder while on active medical treatment. The treatments covered by personal health insurance are broadly categorized into acute (acute illnesses like chronic illnesses like heart disease or cancer) and chronic (chronic diseases like stroke, diabetes, and hypertension) .

Understandably, these are the most popular benefits in personal health insurance. The question now is: what’s the best kind of health insurance to buy in Nigeria?


 The Unstructured Supplementary Market

 This is probably the most popular health insurance package among individuals who are new to the insurances game, but is likely to end up as a source of disappointment for them. They may have to bear the brunt of confusion, since there are about 40 other health insurance companies that provide different products to suit individual preferences.

 This unstructured supplementary market generally allows the policyholder to change the health insurance company once, at the end of a period of one year (known as premium payment period). This may mean that a new policyholder may not be on the same health insurance plan as the one he/she has been with, for a couple of months.


 The Structured Supplementary Market

 This is the mainstream health insurance package for insurance companies that want to sell a package that combines both, inpatient and outpatient services. The treatment packages offered by this kind of health insurance plan are generally an all-inclusive package, which provides an array of inpatient and outpatient treatments, irrespective of the illness, health condition or location of the client.


 Usage of Insurance Policy

 Insurance is a useful tool for business owners as it can provide them with adequate coverage when unforeseen events occur. Business owners often think of their individual lives first, but they should consider investing in business insurance too.

 In an attempt to continue on a successful path, an owner may need to access business insurance coverage from time to time in the event of a catastrophic event or to ensure that their insurance policy will still be valid in the event that their individual policy is no longer active.

 These include disasters such as natural disasters, terrorist activity, industrial accidents, product malfunctions, hazardous materials or theft.

 By having all of these contingencies covered, it gives an owner peace of mind. There is some debate about the true value of insurance, but the consensus is that business insurance is relatively cheap and it can be beneficial to business owners. 


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Thank you

Friends, this is very important information, hope you will read till the end and post it further.


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