Insurance is everyone’s need. Anyone who owns something or desires personal protection needs insurance. From individuals to businesses, insurance is a way to protect all of us from financial loss, disaster, and bad investment.
Everyone should buy insurance based on his/her unique personal needs. The market offers a wide range of insurance products, including property, liability, health, disability, crisis, savings, income protection and investment, to match the changing needs of people or businesses at different stages of their lives.
Certain insurance contracts are also made compulsory by legislation. For example, Oregon law states that tavern and liquor establishments must carry $300,000 of liquor liability insurance or maintain a bond not less than $300,000 with a corporate surety authorized to conduct business in Oregon. Many states require employers to purchase workers’ compensation to protect employees injured on the job.
Read more: Principles Of Insurance – What Is Insurance?
The insurance agent is an individual who sells and services insurance policies. There are generally two classifications of agents:
# Independent Agent
An independent agent represents at least two insurance companies, and services clients by searching the market for the most advantageous price for the most coverage. The agent’s commission is a percentage of each premium paid and includes a fee for servicing the insured’s policy.
# Captive or Exclusive Agent
This type of agent represents only one company, and sells only its policies. This agent is paid on a commission basis in much the same manner as the independent agent.
Types Of Insurance
There are many types of insurance. Here we will discuss the most common types of insurance. Each type of insurance protects the insured from a different type of financial loss.
Life Insurance – In this type of insurance, the company provides money to the insured’s beneficiary when the insured dies.
Health Insurance – This type of insurance covers medical and hospitalization bills of the policyholder.
Long-term Care Insurance – This type of insurance covers the person’s expenses relating to nursing and hospitalization for the elderly.
Disability Insurance – This type of insurance provides income in case the insured becomes disabled and is unable to work.
Personal Property Insurance – This type of insurance covers the property against damages.
Home Owner’s Insurance – This type of insurance covers damages to the insured’s house.
Automobile Insurance – This type of insurance covers the insured’s car and passengers against damages.
Other types of Insurance – There are also some other types of insurances related to the Business, Disaster, Travel, etc.