What is insurance?
Insurance is an agreement through which insurer would pay an amount as agreed to insured person in case of any mishap. In an insurance policy insured person pay a fixed amount monthly, quarterly or yearly as agreed, to the company to insure him/herself or his/her belongings. In return the insurer or the insurance company would compensate the loss of thing/person who/which is insured.
Who needs to obtain insurance policy?
Everyone who has dependent living with them needs to obtain an insurance policy, or anyone who has something very precious. There are many types of insurance offers available like life insurance, home insurance, property insurance, landlord insurance, pet insurance, car insurance, van insurance etc. in order to compensate the loss of these particular things. At many stages in our life we incur losses and we are not in the position to bear such losses at that point insurance policy helps you to overcome the loss and live without disturbing your normal life style.
Why insurers provide insurance policies?
Insurers or insurance companies provide insurance policies for such incidents which occur off and on, they won’t insure you for something which has more chances to happen. Suppose insurer would not provide you car insurance if you use it for racing because this has more chances to be damaged neither they will provide you life insurance if you are suffering from any fatal disease in which you have less chances to live. All insurance companies are likely to insured you if you have sound physical health or you can get your car insured if you use it for only domestic or business purposes.
Do I need to compare insurance policies?
Yes! You do, because now there are hundreds of insurance companies available in United Kingdom, and all companies are trying to sustain in the market by attracting more and more customers through offering the best possible return against premium their customer pays. It is wise to compare prices as one company may not give you those facilities or return amount as others would pay you on the same premium/amount.