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Article Title: Insurance : How It Really Works
Author: Irsan Komarga
Category: Insurance
Word Count: 399
Keywords: how insurance works
Author's Email Address: [email protected]
Article Source: http://www.distributeyourarticles.com
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Since the dawn of civilization and history, insurance existed among merchants 
and traders. Today, insurance is an international "thing". Insurance firms all 
over the world, especially in countries with major industries, the US, Canada, 
Britain and most western nations, are becoming major demands for clients 
seeking to be "insured". Some governments use social insurance programs.

Individuals, families, associations, businesses and other organizations are all 
vulnerable to financial loss. In other words, they can lose valuables including 
money at any time. Thus for instance, the chief executive of a corporation 
would purchase insurance as a "backup plan" when the need arises as financial 
loss can come all of a sudden.

Ultimately, insurance is very advantageous since when tough situations come, 
the client would not pay as much as the situation may call for, because the 
insurance provider will be the ones to pay. In this case, the client has this 
benefit: a small expense makes up for bigger expenses. Ideally through this 
insurance activities, those who are fortunate to avoid loss provides for those 
who have suffered loss.

Insurance providers or insurers use mathematics in their operations. With the 
use of math, they prepare for probable losses using the theory of probability. 
Experts in this area use what are called "mortality tables" for life 
insurances. Other data are used for other kinds of risks in order to predict 
the possible losses. Based upon these calculations, the insurers will make sure 
the premiums are in hand so that the losses will be paid as these happen.

Insurance policy consists of the terms of agreement between the insurer, the 
insurance provider, and the insured, that is, the client. The policies can be 
classified as follows: liability, personal and property. Liability policies 
apply to losses involving the person or the property of people other than the 
client. In these cases, the client is legally responsible by contract or tort 
law. 

Personal policies are for the client's person, thus, they involve premature 
death, financial loss and disability. They may also involve one's family or 
close business associates-the persons in whom the client has considerable 
interest. Property policies refer to the possessions of the client or insured. 
Thus, these policies are concerned with income loss (related to property), 
repair and replacement of property.

Insurance are here to stay to make thing better; especially the future. It's 
all within reach with your hands if you embrace the true essence of insurance.

Irsan's passion is to write on wide varieties of subjects. His latest writing 
is at http://www.stihlleafblowers.com which contains reviews on electric leaf 
blower and other information about leaf blowers.
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