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What is insurance?

Insurance protects you from having to bear the full financial burden of an unfortunate event. Your personal and professional life may both experience these.

Insurers, on the other hand, aren’t exempt from worries. A burglary or a car accident, for example, can have ramifications that go far beyond the monetary. These events can have a significant psychological impact on people.

As a result, it is in everyone’s best interest to minimise their risks. As an example, you can put an alarm in your house that scares away intruders. Taking a defensive driving course can reduce the likelihood of a car accident.

Insurers have the widest range of policies. Some types of insurance are required by law (such as car). All the things that could happen to you in your personal life, and the insurance policies that can help you deal with them.

A neighbor’s window is broken when your child is playing with a ball ( BA Familiale ).

After you forget to turn off the stove, a fire breaks out in your home ( fire insurance ).

You struck another driver ( compulsory car insurance ).

Healthcare and hospital costs rise as a result of the legislation ( compulsory insurance through the health insurance fund , supplementary hospitalisation insurance ).

Additional hospitalisation insurance or outpatient care insurance is required to be admitted to the hospital in a single room.

While washing the windows, your housekeeper slips and falls from a ladder ( insurance domestic workers ).

Taking legal action against your neighbour is the only way to resolve issues with the common wall ( legal expenses insurance ).

Insurance is a contract between the insurer, who agrees to pay a specific amount, and the insured, who agrees that they will be compensated in the event of certain, but unforeseeable, future events.

Is it still you out there? Insurance isn’t as simple as it appears in the above paragraph. But what exactly are we talking about? And… must I cover everything with insurance? I’ll get to the bottom of it!

An ‘unexpected’ event is what insurance protects against. As a result, it’s impossible to predict whether or not something will happen. A burned-out house can no longer be insured because the damage has already been done.

Insurance has a much older history than I originally thought. To name one ancient civilization, the Babylonians were masters of risk management. It was formed to compensate for the loss of livestock by a large number of Babylonians. Those Babylonians were some clever savages.

Over time, the idea of insurance has taken on different meanings. The transportation of goods by sea was also covered by the policy. Taking out a life insurance policy to leave money to your loved ones after your death was possible as early as the Middle Ages.

Non-life insurance: in the event of damage, the insurer compensates the insured (partial compensation). Other well-known types of insurance include: fire and burglary; legal and court costs; marine; and transport and shipping.

The insurance sum: the amount that the insurer will pay out has already been determined in advance. Life insurance and pension insurance are two of the most well-known types of large sum policies.

What does insurance cover?

An insurance policy is a contract between the insurer and the insured that commits the insurer to paying a specific amount in the event of an uncertain future event.

Is it still you out there? Insurance isn’t as simple as it appears in the above paragraph. But what exactly are we talking about? And… must I cover everything with insurance? I’ll get to the bottom of it!

An ‘unexpected’ event is what insurance protects against. As a result, it’s impossible to predict whether or not something will happen. A burned-out house can no longer be insured because the damage has already been done.

Insurance has a much older history than I originally thought. To name one ancient civilization, the Babylonians were masters of risk management. It was formed to compensate for the loss of livestock by a large number of Babylonians. Those Babylonians were some clever savages.

Throughout the ages, insurance has evolved. The transportation of goods by sea was also covered by the policy. In the Middle Ages, people could already purchase life insurance policies that would pay out benefits to surviving family members in the event of their demise.

Currently, there are two primary types of insurance to consider.

Non-life insurance: in the event of damage, the insurer compensates the insured (partial compensation). Other well-known types of insurance include: fire and burglary; legal and court costs; marine; and transport and shipping.

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