What do you know about insurance?

Insurance is a means of protection from financial loss. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss.

An entity which provides insurance is known as an insurer, insurance company, or insurance carrier. A person or entity who buys insurance is known as an insured or policyholder. The insurance transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer's promise to compensate the insured in the event of a covered loss. The loss may or may not be financial, but it must be reducible to financial terms, and must involve something in which the insured has aninsurable interest established by ownership, possession, or preexisting relationship. The insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insured will be financially compensated. The amount of money charged by the insurer to the insured for the coverage set forth in the insurance policy is called the premium. If the insured experiences a loss which is potentially covered by the insurance policy, the insured submits a claim to the insurer for processing by a claims adjuster.

     

Early methods

Methods for transferring or distributing risk were practiced by Chinese and Babylonian traders as long ago as the 3rd and 2nd millenniaBC, respectively. Chinese merchants travelling treacherous river rapids would redistribute their wares across many vessels to limit the loss due to any single vessel's capsizing. The Babylonians developed a system which was recorded in the famous Code of Hammurabi, c. 1750 BC, and practiced by early Mediterranean sailing merchants. If a merchant received a loan to fund his shipment, he would pay the lender an additional sum in exchange for the lender's guarantee to cancel the loan should the shipment be stolen or lost at sea.

At some point in the 1st millennium BC, the inhabitants of Rhodes created the 'general average'. This allowed groups of merchants to pay to insure their goods being shipped together. The collected premiums would be used to reimburse any merchant whose goods were jettisoned during transport, whether to storm or sinkage.

Separate insurance contracts (i.e., insurance policies not bundled with loans or other kinds of contracts) were invented in Genoa in the 14th century, as were insurance pools backed by pledges of landed estates. The first known insurance contract dates from Genoa in 1347, and in the next century maritime insurance developed widely and premiums were intuitively varied with risks. These new insurance contracts allowed insurance to be separated from investment, a separation of roles that first proved useful in marine insurance.

Modern insurance

Property insurance as we know it today can be traced to the Great Fire of London, which in 1666 devoured more than 13,000 houses. The devastating effects of the fire converted the development of insurance "from a matter of convenience into one of urgency, a change of opinion reflected in Sir Christopher Wren's inclusion of a site for 'the Insurance Office' in his new plan for London in 1667".  A number of attempted fire insurance schemes came to nothing, but in 1681, economist Nicholas Barbon and eleven associates established the first fire insurance company, the "Insurance Office for Houses", at the back of the Royal Exchange to insure brick and frame homes. Initially, 5,000 homes were insured by his Insurance Office.

At the same time, the first insurance schemes for the underwriting of business ventures became available. By the end of the seventeenth century, London's growing importance as a center for trade was increasing demand for marine insurance. In the late 1680s, Edward Lloyd opened a coffee house, which became the meeting place for parties in the shipping industry wishing to insure cargoes and ships, and those willing to underwrite such ventures. These informal beginnings led to the establishment of the insurance market Lloyd's of London and several related shipping and insurance businesses

Types of Insurance

Life throws many unexpected things at all of us. While we usually can't stop these things from occurring, we can opt to give our lives a bit of protection. Insurance is meant to give us some measure of protection, at least financially, should a disaster happen. There are numerous insurance options available, and many financial experts tell us that we need to have these insurance policies in place. Yet, with so many options, it can be difficult to determine what insurance you really need. Purchasing the right insurance is always determined by your specific situation. Factors such as children, age, lifestyle and employment benefits are all points to consider when planning your insurance portfolio. (For related reading, see How Much Life Insurance Should You Carry?)

SEE: Intro To Insurance

There are however, four insurances that most financial experts recommend that all of us have: life, health, auto and long-term disability. Each one of these covers a specific aspect of your life, and each one is very important to your financial future.

Life Insurance
The greatest factor in having life insurance is providing for those you leave behind. This is extremely important if you have a family that is dependent on your salary to pay the bills. Industry experts suggest a life insurance policy should cover "ten times your yearly income." This sum would provide enough money to cover existing expenses, funeral expenses and give your family a financial cushion. That cushion will help them re-group after your death.

When estimating the amount of life insurance coverage you need, remember to factor in not only funeral expenses, but also mortgage payments and living expenses such as loans, credit cards and taxes, but also child care, and future college costs.

LIMRA, formerly known as the Life Insurance Marketing & Research Association, says that if the primary wage earner dies in a family with dependent children that family will only be able to cover their living expenses for a few months, and four in 10 would have difficulty immediately.

The two basic types of life insurance are Traditional Whole Life and Term Life. Simply explained, Whole Life is a policy you pay on until you die and Term Life is a policy for a set amount of time. You should seek the advice of a financial expert when planning your life insurance needs. There are considerable differences between the two policies. In deciding between these two, consumers should consider their age, occupation, number of dependent children and other factors to ensure they have the coverage necessary to protect their families. (For additional reading, see What To Expect When Applying For Life Insurance.)

Health Insurance
A recent Harvard study noted that statistically, "your family is just one serious illness away from bankruptcy." They also concluded that, "62% of all personal bankruptcies in the U.S. in 2007 were caused by health problems and 78% of those filers had medical insurance at the start of their illness."

Those numbers alone should urge you to obtain health insurance, or increase your current coverage. The key to finding adequate coverage is shopping around. While the best option and the least expensive is participating in your employer's insurance program, many smaller businesses do not offer this benefit.

Finding affordable health insurance is difficult, particularly without an employer-sponsored program or if you have a pre-existing condition. According to the Kaiser/HRET survey, the average premium cost to the employee in an employer sponsored health care program was around $4,100. With rising co-payments, yearly deductibles and dropped coverage's, health insurance has become a luxury less and less can afford, yet even a minimal policy is better than having no coverage. The cost for a day in the hospital can range from $985 to $2,696. Even if you have minimal coverage, it can provide some monetary benefit for your hospital stay.

As the health care debate continues in Washington, approximately 48 million Americans are without insurance coverage. Check with your employer regarding health care benefits, inquire of any occupational organizations that you belong to regarding possible group health coverage. If you are over age 50, AARP has some health insurance offers available. (To learn more, check out Buying Private Health Insurance.)

Long-Term Disability Coverage
This is the one insurance most us think we will never need, as none of us assumes we will become disabled. Yet, statistics from the Social Security Administration show that three in 10 workers entering the workforce will become disabled, and will be unable to work before they reach the age of retirement. Of the population, 12% are currently disabled in some form, and nearly 50% of those workers are in their working years.

Even those workers that have great health insurance, a nice nest egg and a good life insurance policy never prepare for the day when they might not be able to work for weeks, months or may not ever be able to return to the job. While health insurance pays for your hospitalization and medical bills, where is money coming from to pay those daily expenses that your paycheck covers? Here are a few very sobering statistics regarding disability:

• Disability Causes Nearly 50% of all Mortgage Foreclosures, 2% are Caused by Death.
• Close to 90% of Disabling Accidents and Illnesses Are not Work Related.
• In the Last 10 Minutes, 498 Americans Became Disabled.

If you are injured and off work for even three months, would you have enough in savings to cover your living expenses? Consider what you might face financially if you suffer a major medical condition such as cancer and were unable to work for over a year.

Many employers offer both short-term and long-term disability coverage as part of their benefits package. This would be the best option for securing affordable disability coverage. If they don't, seek out a private insurer. If you aren't sure how much coverage you need, AARP offers a very good disability insurance calculator to help you.

A policy that guarantees income replacement is the optimal policy; more usual terms are replacement of 50 to 60% of your income. The cost of disability insurance is based on many factors including age, lifestyle and health. For group or employer coverage, the average rate in 2009 was about $238 per year or approximately $5 per week. A small price to pay if you are faced with a devastating illness or injury. Disability insurance will guarantee that you will have some income when you can't work.

Auto Insurance
There were over 10-million traffic accidents in the U.S. in 2009 (latest available data) and 33,808 people died in motor vehicle crashes in those accidents, according to data released by the Fatality Analysis Reporting System (FARS). The number one cause of death for American's between the ages of 5 and 34 were auto accidents. Over 2.3 million drivers and passengers received treatment in emergency rooms in 2009, and the costs of those accidents including deaths and disabling injuries was around $70 billion.

While all states do not require drivers to have auto insurance, most do have requirements regarding financial responsibility in the event of an accident. Many states do periodic random checks of drivers for proof of insurance. If you do not have coverage, the fines can vary by state and can range from the suspension of your license, to points on your driving record, to fines from $500 to $1,000.

If you drive without auto insurance and have an accident, the fines will probably be the least of your financial burden. Your car, like your home is a valuable asset you use every day. If your car is damaged in an accident and you have no auto insurance, you will have no way to replace that vehicle unless you have a large savings account, and you don't really want to tap into that savings when auto insurance could cover the cost.

If you, a passenger or the other driver is injured in the accident, your auto insurance will pay those expenses, and help guard you against any litigation that might result from the accident. Auto insurance also protects your vehicle against theft, vandalism or a natural disaster such as a tornado or other weather related incidents.

Again, as with all insurances, your individual circumstances will determine the price of your auto insurance. The best advice is to seek out several rate quotes, read the coverage provided carefully and check periodically to see if you qualify for lower rates based on age, driving record or the area where you live.

The Bottom Line
While insurance is expensive and certainly takes a chunk out of your budget, being without it could lead to financial ruin. Always check with your employer first for available coverage, as this will probably be where you will find the most economical way to of securing coverage. If your employer doesn't offer it, obtain multiple quotes from several insurance providers. Schedule times with agents who offer coverage in multiple areas as they may have some discounts available if you purchase more than one type of coverage. (For additional reading, see Understanding Your Insurance Contract.)

The expense of not having insurance is nothing compared to the expense of living without it.

Best Insurance Companies in Pakistan

If you are thinking about insurance then you have a choice for various companies but what are best out all of these. We have gathered here a list of only top 10 and best insurance companies in Pakistan which has offices in all major cites of Pakistan. Almost all these have different kinds of products including Life insurance, vehicle, business, health and many others. You can get more details by contacting directly with company and know more about policy, premier, jobs and other details.

Although there are tens of insurance companies working in Pakistan but no one can compete State Life. It is one of the best and have decades of trust. You can get more details about State Life insurance company Plans,Calculator, contact number and more details below.

1. State Life
2. EFU Life Insurance
3. Adamjee Insurance
4. Jubilee
5. Postal Life
6. AIG Insurance Company
7. United
8. NJI
9. Premier Insurance Limited
10. IGI Insurance

State Life

Premium Calculator

Use this calculator of State Life to calculate your Premium by giving information such as your pol8icy, type, gender, spouse and children age, sum assured and premium payment mode.

www.statelife.com.pk

Contact Number

 Here is contact number of State office Lahore. Just make a call and get more information about jobs, plans, premium or any other queries regarding your issue.

Contact Number: 041-3420174

State Life Jobs

Thousands of people are already working for State Life and are earning good income and you can also join the team by simply sending your CV along with required documents.

www.statelife.com.pk/jobs

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EFU Insurance

EFU Insurance company is one of the best in Pakistan. It has difference insurances and products including life, education, marriage, retirement, general, student, travel and many others. Efu has head office in Karachi and others in Islamabad and Lahore, Rawalpindi, Hyderabad, Faisalabad, Multan, Peshawar, Gujranwala  Pakistan. Get more details about plans, jobs, careers and other information about efu life insurance below.

EFU Life & General Insurance Plans

www.efulife.com/

Contact with efu offices to know get more information such as how much would it cost for 3rd party insurance, claims, payout ratio, ctl and theft claims and others.

Contact Numbers

021-32313471-90

Insurance Plans

Efu Car Insurance

Efu offers car insurance for accidents, damage, deaths and other kinds of suffering during traveling though your own car or any other vehicle. Although there aer lot of other companies that offer car insurance but efu offers different and best options for you and your car safety.

EFU Health Insurance

Health insurance cover all major diseases and and problems of a person who get health insurance from EFU. Health plan is co venture between Faisal Bank and EFU insurance Pakistan.

EFU Travel Insurance

Travel insurance is available for days, weeks, months and more days. Rates and plans are different for cities in Pakistan and worldwide. Student who goes abroad for study also get efu student travel insurance. This policy includes all including your health, luggage, money and others during your traveling period.

EFU Marriage Plan

Parents dreamt about marriage of their children from younger age. EFU brings a best marriage plans which can make your dream true. It is a long term plans. EFU guides not only gives financial support but complete planning for wedding of your son and daughters.

Life education /Students plans

Education plans is prepared for future education of your child in good universities and colleges of Pakistan and UK, USA, Australia etc. know more about premium and other requirements and procedure though efu general insurance website.

Efu Jobs / careers

EFU insurance is one of the best place for jobs in Pakistan. It gives you not only good income but opportunities too. It always welcomes people from all over Pakistan for posts of sale consultants, unit mangers, and assistant branch manager. Company offers best package, cars and prospect to successful candidates.

Efu insurance stands for?

Efu insurance stands for Eastern Federal Union Insurance.

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What is Insurance Deductible?

How does health insurance deductible work? What does health insurance deductible means? What is annual deductible for health insurance? These are example of some questions many people ask. And if you are also one of these then we are going to define you here about this topic briefly. Understanding health insurance deductible is not very difficult. It is a term used in field of insurance world.

Health Insurance Deductible Explanation

Deductible is the sum of money you pay for entitled health expenses in a calendar year. Once deductible amount is fully deducted, you give not anything or you allocate the left behind costs with you company up to out of wallet highest. Amount of deductibles may be different and it totally depends on whether health services are received within or any other network.

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Business Insurance

know here about Business insurance and takaful. Read here article about Business insurance policy. Know more about insurance by visiting this sites.

www.js.com

JS group is 2nd main shareholder in EFU insurance. EFU started work in year 1932 with the name Eastren Federal Union insurance. EFU has different insurances such as General insurance, life insurance and health insurance. EFU General Insurance is for businesses. EFU has 72 branches in country. It is one of the best insurance companies in Pakistan.

www.captaincompany.com

Read here article about business insurance and its importance for your business. It is very important that you have business insurance. All businesses have some liabilities so it is essential to have business insurance. Read more about this topic by exploring this site.

www.fredericksburg-insurance.com

Check out Best business insurance rates and understand the needs of business insurance. Business have many types such as shops, hotels and restaurants, book stores, factory or agriculture. Visit the insurance companies and get your business policy.

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International Health Insurance Companies

We have selected here best cheap dental and health insurance planes. These offer low cost, affordable family and individual health insurance plans including vision, dental and others. Some of these are very famous insurance companies in Canada, USA, Australia, UK and other countries of the world. We have given below details about these companies so you get more information about packages and plans offered.

Canada

Health and Dental Plans Canada, USA, UK

 (www.costco.com)

Most of people living in USA, UK, Canada and Mexico are already well aware with the name “Costco”. It offers different kinds of services including health and dental insurance plans. It offers services of different plans including Group or family dental plans for Individuals.

Extended Health and Dental Insurance

 (www.sunlife.ca/Canada)

Sun Life offers affordable health and dental insurance for families. Cost of dental treatment is very high in all provinces of Canada so it is necessary now to not only take attention of only health plans but a package with dental product. Although dental plan is not a single product but is part of EHS or extended Health Insurance.

Individual Health and Dental Insurance

 (www.pac.luecross.ca)

Blue Cross is name of trust and hope in the field of Insurance in Canada. It offers different plans and packages including Detal Only, Blue choice, Primary Blue and Group Plan Conversion. You can download form, check rate sheet and others. In Canada a person have to pay almost $100 for regular dental checkup. On other hand you could not ignore your checkup for very long time. So Blue Cross is here to help you in this area of health. Know more about stand alone (personal) and Family Dental plans and packages.

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Cheap Car Insurance Companies

Buying a car is a one sided story but choosing a good affordable car insurance is another aspect. Choosing a best and cheap auto insurance company is very tricky and complicated from a long list. There are lot of agencies who have agents and offices in US, Canada, UK, Australia, Mexico, South Africa and other countries of the world. We have arranged here a list of website and insurance companies which can be very helpful to find answers to questions like “Which auto insurance is best”, most reasonable car insurance company, least expensive or low cost rates and more details.

List of Cheap Auto Insurance Companies

Here is the list of best cheap auto insurance companies in Michigan, GA, Virginia,  Florida, California, VA, PA, NY and other states and countries. Some of these also offer high risk and full coverage insurance at affordable rates for their customers.

Low Cost Auto Insurance

(www.titan.com)

Titan offers quality car insurance nation wide at affordable price. Every customer could have different types of needs so, it is not easy to find perfect cheap insurance company. Titan offers best insurance at very affordable rates US. It is very difficult to find best and cheap insurance for High risk drivers. Drivers with over speeding tickets, with 6 points, fault accidents, DUI convicted or teen drivers can avail this insurance. Contact with titan through website, agent or at 1-800-848-2687.

Affordable Car Insurance

(www.geico.com)

It is very difficult to save money and find a good value at same time but Geico is here to offer both of these at the same time for its customers. You can get free auto insurance quote to check how much you can save. Contact with Geico for General Claims at phone number 1-800-861-8380.

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Best Affordable Life Insurance International Companies

We have arranged here list of Best Affordable Life Insurance Companies in USA and other countries. Most of these companies offers cheap plans and has offices nationwide. You can check rating, customer service, value for price and others details of these companies in some of these selected sites.

State Farm Life Insurance

(www.statefarm.com)

Although State Farm provides lot of products but our focus is especially on Life Insurance. You can check life quote for all states of US and get more details about rates, coverage, Advantages, death benefits, Premiums and available Policies for Over 40, 50 and others. State Farm has offices and agents in USA and Canada.

New York Life Insurance Company

(www.newyorklife.com)

New York Life insurance is in also at top in the list of best insurance Companies in America. Its rating is A++ in different categories. Company also has business in Mexico and other offices in New York, Chicago, Kansas City, Montreal, Budapest and Amsterdam. You can read its latest view at www.review.com. 

Phone Number: 212-576-7000

Prudential Life Insurance

(www.prudential.com)

Prudential Insurance company has A+ rating in US and is of course one of the best company. It has lot of products and solutions including Annuities, Mutual funds, Retirement Solutions and more.