What Is Insurance

INSURANCE is a form of risk management in which the insured transfers the cost of potential loss to another entity in exchange for monetary compensation known as the premium. (For background reading, see The History Of Insurance In America.)

Insurance allows individuals, businesses and other entities to protect themselves against significant potential losses and financial hardship at a reasonably affordable rate. We say "significant" because if the potential loss is small, then it doesn't make sense to pay a premium to protect against the loss. After all, you would not pay a monthly premium to protect against a $50 loss because this would not be considered a financial hardship for most.

Insurance is appropriate when you want to protect against a significant monetary loss. Take life insurance as an example. If you are the primary breadwinner in your home, the loss of income that your family would experience as a result of our premature death is considered a significant loss and hardship that you should protect them against. It would be very difficult for your family to replace your income, so the monthly premiums ensure that if you die, your income will be replaced by the insured amount. The same principle applies to many other forms of insurance. If the potential loss will have a detrimental effect on the person or entity, insurance makes sense. (For more insight, see 15 Insurance Policies You Don't Need.)

Everyone that wants to protect themselves or someone else against financial hardship should consider insurance. This may include:

    Protecting family after one's death from loss of income
    Ensuring debt repayment after death
    Covering contingent liabilities
    Protecting against the death of a key employee or person in your business
    Buying out a partner or co-shareholder after his or her death
    Protecting your business from business interruption and loss of income
    Protecting yourself against unforeseeable health expenses
    Protecting your home against theft, fire, flood and other hazards
    Protecting yourself against lawsuits
    Protecting yourself in the event of disability
    Protecting your car against theft or losses incurred because of accidents
    And many more


Read more: http://www.investopedia.com/university/insurance/insurance1.asp#ixzz2KstIz3mK

Individual Medical Health Insurance Coverage

At State Farm®, we strive to address all of the insurance needs of our customers. Through a marketing agreement with Assurant Health (Time Insurance Company, Milwaukee, WI), your State Farm agent may be able to help you with:

• Individual Medical Insurance Coverage (Including High Deductible Health Plans which can be used with a Health Savings Account)
• Short Term Medical Coverage
• Fixed Indeminity Plan with a Limited Benefit

State Farm, in conjunction with the Time Insurance Company, offers our customers a combined 175 years of quality service and products.

To learn more about Assurant Health products, please contact a State Farm agent.

Assurant Health is the brand name for products underwritten and issued by Time Insurance Company, Milwaukee, WI, which is financially responsible for these products. Assurant, Assurant Health, and Time Insurance Company are not affiliates of State Farm. Assurant Health products are not available in MA, NJ, NM, NY, RI, and VT.

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UNDERSTANDING INSURANCE

     As we know one way to tackle the risk of loss is to insure a risk to the insurance company. This method is considered as a method of the most important and most good in the effort to cope with risk. Therefore many people who argue that risk management is the same with insurance. Though the actual circumstances and the fact is different from the truth. Insurance coverage bias is meaningful transaction, which involved between the two parties, the insured and the insurer. Where the insurer guarantees the insured party, that he will seek relief against any loss which may be suffered, as a result of an event which was originally not necessarily going to happen or who previously could not be determined when / when incurred. As kontraprestasinya the insured in the compulsory pay some money to the insurer, the amount of a percentage of total coverage, commonly called "premium". Viewed from some angles, then the insurance has the purpose and techniques of various solutions, among others: a. In terms of economy, then: The goal: reduce the uncertainty of the results of the work done by a person or company in order to meet the needs or achieve goals. Techniques: by altering the risk to other parties and other parties combine a number of risks large enough so that it can be estimated with more precision the magnitude of potential loss. further with themes that would be better and some other information.