Insurance is a form of risk management and can be defined as the transfer of a given risk to an insurance provider in exchange for a premium paid by the insured at regular intervals. To have a form of financial recompense should the risk, an illness or accident for instance happen, is the basis by which the whole world has now accepted and needs insurance. The sum the insured pays, or insurance premium is based on the probability of the event taking place and if it doesn't, the risk taker or underwriter, keeps the premium paid.

Not all insurance is dead money as there are other forms where an investment is made by the insurance firm with the insured's premium and a payment, normally with profits is made at the end of the term with a percentage retained by the insurance firm. Insurance is a huge field and there are an untold number of companies now able to supply this service which has also lead to the decrease in insurance installments for many forms of insurance.

There are times when you will not be allowed to carry something out unless you are insure, this is known as a obligatory insurance policy. life insurance, automobile indemnity, health insurance, home protection, property cover, disability indemnity, travel protection, pet protection, cycle indemnity, recreational vehicle insurance, sports indemnity.

Insurance to cover exceptional or extreme activities or even unlikely events can also be arranged so you can in theory insure your pet against an asteroid hitting it - the industry is that comprehensive. In short, insurance can be purchased to cover any kind of a risk.

The arrangement which covers the insured person issued by the insurance firm company is called the insurance policy. This is a legally binding arrangement in which the insured agrees to pay a certain sum as a premium to the insurer and providing all the terms of the agreement have been met, the insurance firm in turn promises to cover any costs that may have to be incurred in the future for the particular person or object that has been covered by the policy.

When you approach an insurance company to buy an insurance policy, the company provides you with a quotation that contains all the aspects like premiums to be paid, the benefits and so on. Once the document is signed, the insurance company will review the application before it too agrees to the legally binding contract, however sometimes other elements may need to be clarified before it is finally completed.

When the situation happens for which you have taken the policy, you can approach the insurance provider and file a claim to be paid for the expenses you incurred because of that situation. Insurance can be purchased directly from the insurance provider or through an insurance agent or broker.

The main factors to be considered when purchasing insurance policies are: does the policy cover all the risks and what are the limits, plus are there any hidden costs and will the provider pay for the claims without any problem. You can contact an insurance agent for getting the right insurance policy but the internet is also a very good source for getting quotes, comparing various policies and deciding on the best one. Possibly the simplest way to arrange insurance nowadays is by using online facilities which can have the insurance in place in a matter of minutes and you get to enter in the exact info for what you are looking for.