Policy (also, Contract)

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Policy (also, Contract) An insurance policy is a contract between an insurance company and a policyholder. The policy outlines the terms and conditions of the insurance coverage, including the types of risks that are covered, the amount of coverage that is provided, and the costs of coverage. When you purchase an insurance policy, you are agreeing to pay the insurance company a premium in exchange for financial protection against certain covered events. If a covered event occurs, you can file a claim with your insurance company and receive benefits to help you cover your losses. Every insurance policy has five parts: declarations, insuring agreements, definitions, exclusions and conditions. It is good to see these sections as guideposts in reviewing the policies. Examine each part to identify its key provisions and requirements. For an insurance policy to remain in force, the policyholder must pay a single premium up front or pay regular premiums over time, as stated in the policy document. As with most legal contracts, insurance policies can be a bit difficult to read. If you take a look at your policy, you’ll see that it’s full of confusing exceptions, and middle English words. This can make it pretty hard to understand what is covered under your insurance policy. Seeking an expert for interpretation can be an option. Reading your policy helps you verify that the policy meets your needs and that you understand your and the insurance company's responsibilities if a loss occurs. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful

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