TRAVEL-INSURANCE

Insurance is a form of risk management which involves transferring a risk that you bear, onto an insurance firm, so that you will no longer need to worry about any event occurring, like death and accident. In this process, you pay a fee or premium. What you get in return is peace of mind. The risk that you are transferring with life insurance is the financial risk of your own death. Keep in mind that it is in certain circumstances possible to insure the life of another person, such as your husband or wife, your children, or an important employee. Your insurance company will then pay out to the named beneficiary once the event occurs. Usually, the person insured is a family member or a business associate.

The thing that insurance companies will be looking for is an insurable interest. Insurance policy states that you could only insure the life of someone that you have a real interest in surviving. Public policy issue also exists that it would be tempting to some people to insure strangers and then make sure they died soon. Your insurance policy will have two important details defined right at the outset.

The first is who is to be paid out under the policy. While this seems obvious, it is important to think carefully about it as, unlike in most insurance contracts, the purchaser of the policy is rarely the beneficiary under a life insurance policy.

The second important detail is the amount to be paid out on to occurrence of the event. It must be remembered that this is also subject to the rule of insurable interest. Therefore you cannot have a policy on your life for more than your life is reasonably financially worth. Since the premium is partially calculated on the amount of the payout, you will simply be paying for more insurance than you can receive. Therefore be honest with how much you earn and how much support you are providing to your family so that the premium will be accurately assessed.

Always consider things when applying for an insurance policy. Check out the background of your insurance company. Ask referrals from acquaintances who are insurance policy holders themselves. Many scrupulous firms carry out insurance fraud to deceive the people and steal their hard-earned money by signing them into bogus insurance policies. This is another thing you should know. For an added peace of mind, you should try to invest in fraud investigation. Report a fraud, especially insurance fraud.

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Cover-More for travel-insurance

As one of Australia's largest travel insurance providers, over 1 million Australians buy Cover-More Travel Insurance every year. We have operations in Australia, New Zealand and the UK. Cover-More administers more travel insurance sales, medical assessments and claims than any other provider in Australia.

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