There might hardly be a person who does not have an insurance of some kind. We have all done it at some time or another. It can be anything from a car insurance, health insurance, home insurance to a travel insurance. All of us have paid lots of money to insurance companies to get that peace of mind that only the knowledge of being insured can bring. Nevertheless, not all of us actually understand the insurance contract that we have signed.
Any new and fresh insurance contract document contains a lot of complex contractual terms and legal provisions. You might never find such complexities in one place anywhere else. Insurance agencies spend tons of money paying lawyers and professionals to come up with updated and amended terms of contracts that cover all possible eventualities.
On the other hand, you have had may be less than a day to take a glance at your contract details and look over the important points that the insurance agent has so kindly highlighted for you.
Nevertheless, you should make sure that you understand this contract up to a reasonable extent at least, if not fully. The basic foundation of all such insurance contracts is the same. They have the same aim and their methods are also similar.
They take the risk of a certain event that might or might not occur, agreeing to pay the expenses in the case that it does occur. Now, this event can be anything, the most common being car accidents, medical treatment, house damage and similar events.
Now, life assurance comes around as slightly different here. It gives you a guarantee of paying after you pass away, which again is an eventuality. Nevertheless, the time at which your death may occur is not certain and hence, the risk is quite real that you die at such a stage of your life when your spouse or your children solely depend upon you.
Apart from that, there should be certain financial cost attached to the event. The insurer should be able to estimate the expense of the loss or damage reasonably. They should be able to do this so that they can calculate the cost of your premium.
Thus, although you will be able to recover any lost wages, medical expenses through insurance, you will not be able to recover the pain, suffering, loss of a loved one under such a contract.
You should keep your eyes open regarding what events are covered in your contract. Besides that, you should know when the policy or plan will pay out as well as the events that they do not cover. There will also be certain conditions and terms that you have to follow in order for the insurance to be valid. Check that out too. Ensure that you understand your contract before signing it.