What is the Requirement of Insurance?

One should have an agreement between an insured and insurer to pay an amount of compensation upon the occurrence of some unexpected events. One would not be in a position to incur the losses in such conditions.

Suppose that a person who is the only earning member of a family meets with an accident and could not go to work for a long period of time, then the situation to maintain his family members is a problem. At such risky situations, insurance helps a lot. Corresponding amount of money to his disability losses can be claimed by the insured person. This money can be used to maintain his family till he becomes normal to resume his job.

The basic benefits if an insurance policy is that financial compensation is given to the policy holder at an occurrence of loss or damage or hazard. Certain optional benefits are also provided by various companies. Certain optional benefits of insurance include:

• Health and Dental insurance of the family
• Life insurance of the spouse and the child
• Long term and short term insurance plans provided at conditions when the policy holder is disabled
• Accidental death policy that is issued in addition with the actual insurance for which one has enrolled for.