What is an insurance policy

  Insurance policies vary according to the subject of insurance; That is، the insured thing، the purpose of the insurance، and the risks it covers، bearing in mind that there are insurance policies issued for the benefit of the insured person himself; They are individual insurance policies، including life insurance policies، in which the husband contracts for the benefit of his wife if he dies، in addition to that there is a type of insurance policy called compound insurance policy، and such type of policy covers more than one type of risk، such as comprehensive insurance On the car، and this type is considered more economical than individual insurance policies that cover only one risk، and there are group insurance policies that cover a group of people who have the same conditions against risks، such as: workers، students، and farmers.

Components of an insurance policy

There are three important elements that must be present in the insurance policy، namely:

• Insurance premium: It means the price that is determined by the insurance company، and it is usually paid in the form of monthly installments، and here the insurance companies differ in terms of the prices they offer to the insured person، and this price also differs، as it depends on the risks that the insured thing may be exposed to. on him.
• The maximum policy limit: where the maximum amount paid by the insurer is specified to cover the covered losses، and the payment period، which may be for life، or a specific period، is specified.
• Deductible amount: It is an amount paid by the insurance policy holder from his own account، before the insurance company pays his claims.