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Insurance Policies and Individual Consumers

Your uncle is a teacher at a local community college. He is currently teaching a class that is primarily comprised of working adults who have come back to school to get their Associate's degree. He has asked you to develop training materials on the subject of insurance policies for individuals. Put together a document that discusses the types of insurance policies that affect individual consumers.

Why are these policies important?

What do they cover?

Who should carry this type of insurance?

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Dear Student,

Thank you for using BM.
Below are my answers.

Anna Liza Gaspar

Insurance Policies

According to the online version of the Encyclopaedia Britannica (2010), insurance is a a "[contract] hat, by redistributing risk among a large number of people, reduces losses from accidents incurred by an individual." In a more layman terms, it involves the insurer, in exchange for a specified payment or premium, paying the beneficiary of the insurance contract a specified amount of money whenever the event that the insured suffers loss as a result of the occurrence of an event specifically covered by the insurance contract or policy (Britannica Encyclopaedia, 2010). The additional costs incurred by an individual for minimizing the risks she or he faces as regards specific events mean that that individual must be careful in choosing what type of insurance policies to buy. As it is there are available insurance policies for almost all types of events, but as a matter of fact only few of these are actually needed.

The following are the different general types of insurance:
1. Life insurance - this type of insurance policy pays a specified amount of money to the beneficiaries or even to the estate of the insured when the insured dies.
2. Health ...

Solution Summary

This solution discusses different types of insurance policies that affect individual consumers.