What is an Insurance

1. Insurance Definitions

2. What is Insurance? • Insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. • Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. • An insurer, or insurance carrier, is a company selling the insurance; the insured, or policyholder, is the person or entity buying the insurance policy. © Copyright 2011 - 2012 www.LifeInsuranceDirect.com.au

3. Types of Insurance • Auto insurance • Health insurance • Accident, sickness and unemployment insurance • Life insurance • Burial insurance © Copyright 2011 - 2012 www.LifeInsuranceDirect.com.au

4. Auto Insurance • Auto insurance protects the policyholder against financial loss in the event of an incident involving a vehicle they own, such as in a traffic collision. • Coverage typically includes: • Property coverage, for damage to or theft of the car; • Liability coverage, • Medical coverage, for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses. © Copyright 2011 - 2012 www.LifeInsuranceDirect.com.au

5. Health Insurance • Health insurance is insurance against the risk of incurring medical expenses among individuals. • By estimating the overall risk of health care expenses among a targeted group, an insurer can develop a routine finance structure, such as a monthly premium or payroll tax, to ensure that money is available to pay for the health care benefits specified in the insurance agreement. © Copyright 2011 - 2012 www.LifeInsuranceDirect.com.au

6. Accident Insurance • In the event of an accidental death, this insurance will pay benefits in addition to any life insurance but only up to a set amount total regardless of any other insurance held by same insurer, held by the client. • Some of the covered accidents include traffic accidents, exposure, homicide, falls, heavy equipment accidents, and drowning. © Copyright 2011 - 2012 www.LifeInsuranceDirect.com.au

7. Trauma Insurance • Critical illness insurance or critical illness cover is an insurance product, where the insurer is contracted to typically make a lump sum cash payment if the policyholder is diagnosed with one of the critical illnesses listed in the insurance policy. • The finances received could be used to: • pay for the costs of the care and treatment • pay for recuperation aids • replace any lost income due to a decreasing ability to earn or even © Copyright 2011 - 2012 www.LifeInsuranceDirect.com.au

8. Total disability insurance • Total permanent disability insurance provides benefits when a person is permanently disabled and can no longer work in their profession, often taken as an adjunct to life insurance. • Disability insurance policies provide financial support in the event of the policyholder becoming unable to work because of disabling illness or injury. © Copyright 2011 - 2012 www.LifeInsuranceDirect.com.au

9. This presentation has derived numerous citations from various sources including http://en.wikipedia.org. The complete article can be found here. • LifeInsuranceDirect does not claim the ownership over the content of this presentation.

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