Looking Deep into Insurance Policies and Its Types

Filed in Blog by on April 18, 2020 0 Comments

Before further expositions are made as regards the concept of Insurance policy, it is important at this point that clarity is made as regards both concepts before merging them up and giving a well-refined explanation to the concept of the insurance policy. A Policy is said can be defined as a deliberate system of principles or decisions to guild a person or set of persons to achieve a deliberate outcome. Also, it can be said to be a system in which two or more persons come into an agreement in other to ascertain a particular objective through stated steps and procedures. In policy, there is a concept known as the Policy process. A Policy step is said to be the systematic Processes that are involved carry out a particular policy effectively and efficiently. As initially stated, the policy process involves systematic stages and they are:

Insurance Policies

Problem Emergence:

Thus has to do with the need for this thing; what us the available problem or risk I want to avoid in this aspect. It is a problem that procures policies; that is to say that Until a problem is identified that the need to make policy may not be acknowledged and may be fought against.

Agenda Emergence:

After you might have discovered the problem, it is now left for you to start creating different agenda at how to avoid or solve that problem, for instance; it is here you build up different goals or objectives you want to achieve that will help solve the problem.

Consider the Options of the Policy:

Most persons fail at this level because they do not take critical time to carefully look and study about a particular policy and go through the terms and conditions of such policy so when it comes for them to bridge the policy and they look at it, they will start regretting to have embarked on such a policy.

Decision Time:

When all the various terms and conditions have fully been looked into, it is left for the person in charge to know if he or she will still continue with the offer or not. Thus, here is a time at which evaluations are put together to ensure that Mistakes are not made and the person in question tends to select a perfect option of the policy that best suits him or her.

Implementing stage:

At this point, the individual in question tends to carry out the implementing process and hereafter a feedback is also carried out to evaluate that policy option in Particular.

Insurance Policy involves an agreement between a proposed insured and an insurance company which determines the quality as well as quantity of claims that an insurer will pay when the time is due. The proposed insured is in this care referred to as the Policyholder. It is worthy to note that every insurance policy must be stand out and well document and presented acceptably. In some cases, however, supplementary writings such as letters sent after the final agreement can make the insurance policy a non-integrated contract. There are however two kinds of insurance contracts and they are Oral and written. In most cases, the oral is not acceptable because it could be denied hence it has to just do with the Spoken word whereas the other can be valid since it involves proper documentation. The following are seen in an insurance policy and they included; declarations, definitions, exclusion, condition, policy form, Endorsement, Riders as well as Jackets.

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