State Farm Yakima
State Farm Yakima

Insurance and its concepts

Insurance is a bond that links the insurer and the insured. They should be very clear so that the insured will be satisfied.  The insurer promises the policyholder to pay a sum of amount to the benefit of the holders, depending on the agreement. The holder can pay their premium regularly. State Farm Yakima is one such life policies which provide protection and investment policies. It has its own limitations and insured events. The present-day insurance has some similarities in asset management and retirement policies also.

Life- based contracts

State Farm Yakima

Protection policies

It is intended to provide a benefit in the way of giving a lump of the amount.

Investment policies

These policies are to assist the growth of investment by regular premiums.

History

It originates in Ancient Rome and it is called as burial clubs which helps in funeral expenses and helped the people in the exact time of need. Their main aim is to provide sufficient fund to the people when they are in critical crisis. It was first given by Edmund Halley by the help of statistical tools. Next, James Dodson tried this in his own family to compete for the basic needs but he was not much successful then his disciple Edward Rowe established it in well to do manner. He only framed the work of scientific insurance practice and its development. Followed by him William Morgon served from 1775 to 1830. Then the premiums are ordered according to the age and their health conditions. Then it spreads in the U.S, particularly in the states of Philadelphia and New York City. The number of companies increases day by day to protect life at a crucial moment.

Contract

The policy owner is the only responsible for the payments when the insured requires money. The insured person may be either himself or the other. The policy owner is the guarantee for the money which the insured is invested. The insured is also a participant of the contract but not the proprietor. According to the policy rules and regulations, the policy owner will provide the money in terms of the agreement. There is an exclusion that the policy owner will not provide the fund with those who commit suicide within a specified time.  The insured has to be complete all the particulars and regulations in a proper format and regular basis, there should not be any misintruptions. The face amount of the policy will be given to the insured if the policy matures then according to the nature of death and its policies the amount will be increased and in some cases, it may be decreased. The insurance company determines its cost by using the mortality tables calculated by actuaries. They show the statistics based on the annual rate of people of different ages.  These tables give a basic concept of the cost of insurance, based on the history of the applicant. All the terms and conditions come underwriting process that is the contract, without this no contract will be accepted or maintained.  It includes factors such as personal medical history, family medical history, driving record and even BMI. The present-day advances more in Automated life underwriting, it is a technological solution to perform the functions of underwriters. It also allows sales distribution and saves the time frame. It helps in quickly finishing the policies so that the insured can benefit at the correct time of the process.

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Anjanette Delbo

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