The Basics of Insurance Policies

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The Basics of Insurance Policies
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• Most people are unaware most insurance policies
  are different. An auto policy is different from
  life insurance and that will be different from a
  long-term care or disability policy. While this
  can be confusing for someone interested in
  purchasing multiple insurance, the good news is
  that all of them share a few common items. Once
  you understand what they are you should be able
  to comprehend which one is which, no matter what
  type of insurance it is.
• Always keep in mind to prevent a lost life
  insurance, keep it in a safe place where your
  loved ones and family members can locate it.
  Registering on a central database is something
  everyone with insurance should consider.

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• The first thing to understand is that an
  insurance policy is a written contract, an
  agreement, between the insured (you) and the
  insurance agency. Every policy has an insuring
  clause which is, basically, a generalized
  statement of what coverage the insurance company
  is responsible for. If you pay the premiums and
  make sure you keep to the conditions within the
  wording, the insurance company agrees to make
  payment to you (and/or beneficiaries) in the
  instance of a loss. Essentially it means any
  financial risk is deflected from you and
  transferred to the insurance company.
• Every plan is also sectioned off, with each
  section defining the terms, types of coverage,
  the rights and responsibilities of both parties,
  any exclusions or limitations and any other types
  of optional coverage you have selected. The first
  page usually begins with a summary of the
  agreement between the insurance company and you
  (the insured). This Declarations Page gives the
  information about who is covered, what's covered,
  the applicable dates for coverage and the amount
  of any premiums. It will also have the policy
  number listed, your name and address, and the
  name and address of the insurance agent. It can
  also have other important information such as
  coverage limits.

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• There should also be several provisions. These
  describe the policy features and types of
  benefits you would expect in the event of a loss.
  It will also explain any necessary requirements
  and the rights and responsibilities for each
  party. Other provisions in the contract may be
  required by law, either state or federal. These
  provisions are required and designed to protect
  you. There will also be a section, or sections,
  for any exclusions denying or precluding coverage
  depending on the circumstances.
• If you had the option of choosing any other
  options when you applied for the insurance
  policy, there will also be a section for these,
  explaining what they are and any related
  information. This can be information about
  dividend options (if you have a cash value life
  insurance policy) or any optional auto coverage
  for an auto plan (such as additional bodily
  injury coverage).
• If you are paying additional premium for any
  riders, there will be sections regarding the
  additional rider coverage - any coverage
  considered above and beyond the basic contract.
  If there are any endorsements or amendments added
  to the standard contract, the insurance company
  may add that information as well, be it at time
  of issue or thereafter.

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• Remember, your insurance policy is a legal
  contract. If you don't understand any portion of
  the wording or provisions, it is best to get help
  from your insurance agent first. Make sure they
  explain everything to your satisfaction and
  understanding before signing.
• Most people are unaware most insurance policy is
  different. An auto insurance policy is different
  from a life insurance policy and a life insurance
  policy will be different from a long-term care or
  disability policy. While this can be confusing
  for someone interested in purchasing multiple
  insurance policies, the good news is that all of
  them share a few common items. Once you
  understand what they are you should be able to
  comprehend your insurance policy, no matter what
  type of insurance it is.
• Article Source http//EzineArticles.com/7481848

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