What is Insurance? What is the benefit of insurance and types of insurance

Updated: Jul 26

Insurance is a necessity that has become indispensable for everyone... So, what is insurance? What are the types of insurance? What is the benefit of insurance? The points we have mentioned below contain general information and may vary according to countries and even insurance companies.


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what is insurance and types of insurance
What is insurance and types of insurance

What is insurance?

Insurance, which is a type of agreement provided with institutions, helps individuals in minimizing the damage to the life, health or property of the person. There are many types such as private health insurance, life insurance, personal accident insurance, car insurance, traffic insurance and travel insurance. The right to receive compensation for the damages you will encounter is obtained with the premium you have paid in advance. In return for the insurance's responsibility to protect you, the amount determined as the premium set forth under the contract must be paid. The written agreement signed between you and the institution performing the insurance service is called a policy. Since the policy is a mutual agreement between the two parties, it is necessary to fully agree on the content of the policy.


Types of insurance

There are many types of insurance to meet your needs. Private health insurance, life insurance, personal accident insurance, motor insurance, traffic insurance and travel insurance are just a few of these types of insurance. Your insurance process is shaped according to the type of insurance you want to have. You can choose the insurance you need depending on your needs, and shape your payment plans according to your budget.


One of the most important points to consider when taking out insurance is the coverage of the insurance. You should pay attention that the benefits and advantages offered to you by the insurance you will take out are fully and clearly stated in your policy. Having information about the points that are not covered by your insurance will minimize the problems you may encounter in the future. For this reason, it is important that you take care to read your policy carefully while taking out insurance.


What is the benefit of insurance?


  • It ensures the elimination of damages when faced with situations that are likely to occur.

  • Since the number of people with whom the risk is shared will change in the right proportion depending on the number of participants, there is no need to pay large amounts at once thanks to the insurance.

  • Insurance provides confidence to both individuals and institutions.

  • Insurance, which is important in promoting entrepreneurship, also allows the future to be planned more clearly.

  • Elimination of possible damages reduces financial worries about the future.


Why insurance is important and why do you need insurance?

Having insurance means that you protect the safety of both your life and property at one point. There are different types of insurance, depending on the risk areas you may face. You can take precautions against different risks at the very beginning with health insurances that may vary for your health, housing insurance for your house or belongings, motor insurance or traffic insurance that secures your vehicle.


Thanks to insurance, you can eliminate expenses that you may encounter unexpectedly from your life. Depending on the policy you will agree with, you can avoid many expenses or save your budget by paying only a portion of the cost. Thanks to your insurance, you can live comfortably by getting your assurance without any loss. You can secure your future with insurance that will meet your needs.


What is Travel Insurance?

Unlike known health insurances, Travel Insurance comes into play during your international and, if you wish, domestic travels, and provides you with urgent treatment and transportation in case you need it. Your health, belongings and budget are under the guarantee of Insurance Company with the Travel Insurance, which is activated before, during and after the trip.


With Travel Insurance, Your Health, Your Goods and Your Budget Are Secured

Travel Insurance keeps your health insured. Your travel insurance covers the health services you will receive against possible health problems and injuries during your travels. Thanks to your travel insurance, you will not pay any price for the treatment you will receive and the medicines you will receive regarding your health. With your travel insurance, your belongings are also insured. Your luggage and personal belongings you take with you for travel are insured by your travel insurance. In case of any loss or theft, all expenses are covered by your travel insurance, within certain limits. Your budget is also among the items secured by your travel insurance. In unexpected situations that may occur during your travel, you can withdraw cash advances thanks to your travel insurance, and thanks to this advantage, you can get rid of the trouble of finding debt. In addition, if you have to wait at the airport due to obligations beyond your control, the expenses you will make after a certain period of time are also considered within the scope of your travel insurance and will be covered by your insurance.


What is covered by travel insurance?

With your travel insurance, you will be protected against possible mishaps, injuries and diseases that may occur during your travel. In this process, the following situations are covered by your travel insurance.


Health

In addition to covering your hospital, treatment, medicine and surgery expenses in case of possible health problems you may experience during your trip, it provides you with the opportunity to contact the contracted medical team and experts at any time on the issues you are concerned about your health. Possible injury and treatment costs that may occur during skiing, which you will do only as a hobby without the aim of earning money, are also considered within the scope of travel insurance.


Discharge and transfer support

Your treatment or post-death discharge or transfer to the country is covered by your travel insurance unlimitedly.


Missing the flight

Mishaps, which are indispensable for travels, are also under the guarantee of your travel insurance. In case you miss your flight, your insurance, which covers most of your ticket costs, also pays a certain amount for missed flights due to transit.


Damaged and stolen items

Your luggage is essential for your travels. With your travel insurance, your damaged or lost luggage is secured. In addition, the expenses you will make after a certain hour for possible loss of time during baggage delivery are also covered by your travel insurance. In the event that you lose your passport or flight ticket along with your luggage, a part of the expenses incurred in order to obtain a new passport and plane ticket are covered by your travel insurance.


Extension or cancellation of travel time

If you are unable to cancel your trip for special reasons such as death or health problems, a certain amount will be paid for your non-refundable and paid expenses. This also applies if you extend your travel time due to possible health problems you may experience during your travel. For the cases documented by the doctor, your accommodation costs are covered by your travel insurance up to a certain day.


Consultation and information

If you have legal problems that you need to defend yourself during your travels abroad, a lawyer is recommended for the subject you need and you are contacted. Travel insurance also provides information and guidance services on issues such as obtaining agencies, visas and passports that may be required for your travel. As the insured, you can send an urgent message on any subject covered by the coverage regarding your travel insurance.


Life insurance, one of the oldest insurance branches; As it can be understood from its name, it is included in the scope of the policy types issued to provide financial support to the insured person or his heirs in case of unexpected situations.


What Does Life Insurance Mean?

Life insurance policies, which are more well-known due to the loans used from banks, are not considered within the scope of private pension or health insurance, although they have a wide coverage. Life policies, which are also defined as a kind of savings insurance; They serve to compensate for the financial losses that may occur due to death, temporary job loss, disability, accident and illness, and are among the financial instruments that can be paid in bulk upon the expiration of the contract, if specified in the policy.


What is Life Insurance?

Life insurance policies are issued by insurance companies against a certain premium. Each policy has a legal period determined by the contract. It covers a series of risks that are likely to occur within this period.


What are benefits of life insurance?

Although life insurances issued in the country of residence have different characteristics, the coverages that can be covered by the policies are;


  • A lump sum payment in case of accident, illness or natural death,

  • Accident, illness, injury, etc. compensating for financial losses that may occur due to job loss,

  • Covering some of the medical expenses during accidents and illnesses,

  • In case of involuntary unemployment, credit, credit card, etc. payment of debts,

  • Financial security and treatment against critical diseases,

  • Payment of daily compensation in cases such as accident, sickness and involuntary unemployment

  • It is the collective payment of the savings upon the non-realization of possible risks at the end of the period specified in the policy.


Who Can Have Life Insurance?


Anyone can get life insurance. Life insurance with different sub-branches such as cumulative life insurance, personal accident insurance, critical illness insurance and involuntary unemployment insurance may include prerequisites depending on the scope of the coverage. Age limit and state of health are the most common of these.


What You Need to Know About Life Insurance

Other things you should know about life insurance policies are as follows;


  • You can have life insurance for anyone you want. It is among the conditions sought for the beneficiary to have a material and moral interest with the person insured.

  • You can have as many life insurance policies as you want. In some special cases, having more than one insurance may exclude coverage for treatment costs.

  • Life insurances expire as a result of the realization of the risk, depending on their coverage. The only exception is cumulative insurance, and the policy is terminated by making a lump sum payment to the beneficiary, even if the risk does not materialize at the end of the initially determined period.

  • Life insurance does not cover situations such as earthquakes, volcanic eruptions, terrorist activities, war and suicide.


What is Personal Accident Insurance?

In your daily life, as a result of an unexpected accident that may happen to you at any time, your life may be at risk, and injuries and injuries may leave permanent damage to your body. With personal accident insurance, you can prevent your family and loved ones from experiencing financial difficulties in case of your death as a result of any accident. In non-fatal accidents, you can cover your post-event treatment costs. If you are unable to work due to disability due to an accident, you can also insure the financial losses you may experience in various ways.


Which Events Are Considered as Accidents?

Events that are defined as accidents in personal accident insurance are determined by the Personal Accident Insurance General Conditions within the framework of the law. According to the General Conditions of Personal Accident Insurance, it is expressed as events that occur suddenly and unexpectedly without the will of the insured person. Traffic accidents have been defined extensively, such as falling, burning, insect bites, biting by animals, inhaling toxic gases. Deaths due to these accidents, damages to your body and your treatment costs, and financial losses that you may experience due to partial or complete disability can be covered by personal accident insurance.


The main criteria in these accidents are that they occur out of the will of the person and that a bodily defect occurs in the body of the insured. In other words; The person must not be at fault in the accident. These definitions and the risks covered by the accident should be clearly stated in the policies you will purchase from insurance companies. According to the content of the purchased personal accident insurance policies, the scope of the insurance and the coverages within the scope are also explained in detail.


What are the benefits of personal accident insurance?

Coverages within the policy may differ in personal accident insurance products. However, in general terms, in case of death of the insured, the death benefit specified in the policy is paid to the persons specified in the policy or to the legal heirs of the insured. In the event that the accident does not result in death, various treatment costs can be covered according to the conditions in the policy. In case of partial or complete disability that occurs within the periods specified in the policy due to the accident, the material losses that the insured may experience due to incapacity for the rest of his life can be secured with daily indemnities, in accordance with the disability rates determined within the framework of the laws.


What is the Difference Between Life Insurance and Personal Accident Insurance?

In terms of general definitions, in life insurance, death benefit is paid to the person in case of any death of the insured, while in personal accident insurance, the condition of death as a result of the accident factors defined in the policy is sought. However, the risks and guarantees may differ in the policy you will purchase.


What is Accident Insurance?

Accident insurances are special packages, the scope of which is determined by insurance companies, and which insures the insured against unexpected hospital, care, transportation and disability costs. The most important situations that are considered as an accident within the scope of personal accident insurance options are as follows:


  • Traffic accident

  • Rolling off the ladder

  • Inhaling toxic or harmful gas

  • Don't be attacked by a wild animal

  • Being stung or bitten by harmful animals

  • Injury in situations that may occur due to earthquake or natural disasters


What Situations Does Accident Insurance Cover?

In accident insurance, in order for the insured to be paid, the negative situation is expected to meet the concept of "accident". Losses and damages suffered by the insured in risky situations in which he is involved voluntarily are not considered within the scope of accident. In addition, damages incurred by the insured while engaging in illegal acts are also considered outside the scope of the insurance. The most important cases that are excluded from personal accident insurance are as follows;


  • Getting injured while physically attacking other people,

  • Unless otherwise stated in the policy, accident while riding a motorcycle or moped,

  • Being damaged while being on an aircraft as a passenger or as a fugitive,

  • Being injured while actively participating in social events, fights and terrorist acts,

  • Experiencing mishaps resulting in physical harm while hunting wild animals or hunting in high mountains,

  • Drowning or in danger of drowning while swimming in consented water.


To Whom Is Personal Accident Insurance Coverage Payable?

In order to pay the personal accident insurance coverage, the accident must be detected and proven, and then the necessary documents must be submitted to the insurance company in full. The conditions that must be met in order to receive a guarantee payment from the personal accident insurance are as follows:


  • Death of the insured due to an accident,

  • Full or partial disability of the insured due to the accident,

  • Incurring hospital and treatment costs,

  • Daily routine dressing and examination costs


Personal accident insurance may also cover the following expenses, depending on the details specified in the signed policy.


  • If the policy includes life insurance, compensation is paid to the heirs of the person who died as a result of an accident,

  • In case of death of the insured, the burial of the body is medically correct,

  • Ambulance and transport services required while the treatment continues,

  • Expenses of the person accompanying during the hospitalization process,

  • Costs of returning to the residence address after the treatment is completed.


If you have personal accident insurance, you can contact your insurance agency and start the legal process easily if you encounter the above expenses as a result of an accident.


What is the Policy?

A policy or insurance document is an insurance agreement in which the mutual rights and responsibilities between the institutions or companies that provide insurance services and the persons who will benefit from the insurance service are specified. The policy, which ensures that the responsibilities of both the insurer and the insured party are clearly defined and their rights are protected during the insurance service, is the guarantee of the insurance transactions.


Organizations providing insurance services take certain risks in order to offer this trust to the people who benefit from the insurance service (e&o insurance, auto insurance, workers compensation insurance, etc.) and in return they receive a premium from the insured person. The policy's role here is to assure trust in this interrelationship. Persons who will benefit from the insurance service for the policy must submit all the necessary information to the insurance company accurately and completely. In addition, in all types of insurance services, the policy must be issued in a reliable manner and delivered to the customer on time.


How is the Policy Arranged?

There are three different parties in the policy, namely the addressee, the drawer and the beneficiary. Policies include information such as insurance type, start and end date, promised guarantees, insurance fee and policy premium amount, payment schedule and issue date. The signed policy is signed in the light of all this information and delivered to the person together with the "General Conditions" and, if determined, "Special Conditions".


The conditions covered by the term "General Conditions" are valid for all insurance companies in the country and they are all exactly the same. It includes all the conditions, out of coverage, rights and responsibilities of the insurance company or the person benefiting from the insurance service. Apart from these, different articles regulated within the framework of the general legislation are included in the section specified with the phrase "Special Conditions".


How Much Are the Policy Fees?

In insurance companies, there are many advantageous insurance services offered for individual or corporate identities. With insurance, you can ensure the health of yourself and your family, the safety of your vehicle and home, the health of your pet and many important details about your future life. As with insurance fees, insurance quotes and workers compensation insurance there are also fees for policy fees that vary depending on the type of service you benefit from.


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