Question

what are the aims and objectives of different types of insurance policies?plz guys fast answers

Answer 1

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Types of Insurance

You can purchase insurance for just about anything, though the most common types of insurance include the following:

Life insurance: pays cash policy benefits to your survivors in the event of your death.

Car insurance: pays off repair costs if you damage your own vehicle, or damage another driver's vehicle or cause bodily injury to another.

Homeowner's insurance: covers damage to your home caused by events such as fire, flooding or severe weather.

Disability insurance: helps you pay your bills if you become disabled and are unable to work.

Liability insurance: typically coverage for businesses rather than individuals, in the event someone is injured while on company property.

Health Insurance

Health insurance is its own entity, as a variety of things affect your ability to find, secure, and utilize health care benefits. Additionally, there are numerous policy levels, all of which come with different premium costs, benefits, co-pays and annual and lifetime caps. Some types of health insurance are provided to employees as a benefit of employment, and other forms of insurance are available at reduced rates for people in certain income or age ranges. Health insurance typically covers some, but not necessarily all of the following:

Doctor office visits

Specialist visits

Diagnostic testing

Emergency room care

Prescriptions

Medical devices 

Most types of insurance require a physical evaluation to assess pre-existing conditions. The objective of insurance, in this case, is to assess how much you’re likely to cost during the term of your policy, and set your rates accordingly.

Tip

Dental care and vision coverage are sub-sets of health insurance, but are policies that are purchased independent of healthcare insurance policies.

Objective of Insurance Companies

Insurance companies generate a profit when they sell more in policy dollar amounts than they pay out in insured claims. As such, insurance companies have an objective of using a process called underwriting to examine every insurance applicant. They then make a determination about whether that client will be an asset or a liability, and make coverage offers accordingly. Insurance companies also utilize deductibles - the amount of money you have to pay out-of-pocket before insurance kicks in with the rest, and co-pays, or the portion of coverage you have to pay before insurance covers the remainder.
Many types of insurance have qualifiers that affect eligibility and premiums. For example, if you are 95 years old and in poor health, a life insurance or health insurance policy may not be available -- if it is, you will be required to take a physical exam and will likely be charged very high premiums. Insurers are, after all, trying to mitigate their own risk in covering you. Likewise, if you have a terrible driving record, with numerous collisions and citations, auto insurance will cost you significantly more than someone who has never had an accident.