The Basic Facts on Insurance

Insurance is the sharing of risks between a large number of people. Each time you buy an insurance policy, you pay a small amount of money, known as premium, into a grand pool which is then used to provide substantial payments to whoever is unfortunate enough to need compensation for a particular accident or disaster.

You are termed the insured, while the body providing your insurance is generally known as the insurer. What you are insured for is also often called cover.

Insurance and assurance

The term assurance is used mainly for life contracts, whereas insurance is used for all other business. Under a conventional life policy, a sum is payable to you when you reach an agreed age, while, if you die earlier, the benefit is paid to your wife or family or into your estate. Either way you are 'assured' that your money will be repaid, and you are, therefore, known as the 'lifer assured'.

With all other forms of insurance, you may never claim under many policies. For example, if you never experience a fire or a theft, you will never be entitled to receive compensation under a fire or a theft policy however many premiums you may pay. In practice, 'insurance' is often used as a general term to cover all contracts.


The Basic Facts on Insurance

Payroll Giving
It’s all very easy to organise.
Just ask the Personnel or the Payroll Department at your company and, if they already have a scheme, they will give you the relevant forms.  HM Revenue & Customs’ website has a list of Payroll Giving agencies and explains payroll giving in more detail.

Salon Gold Insurance

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read on: How much is your premium?

Insurance is the sharing of risks between a large number of people. Each time you buy an insurance policy, you pay a small amount of money, known as premium, into a grand pool which is then used to provide substantial payments to whoever is unfortunate enough to need compensation for a particular accident or disaster.
You are termed the insured, while the body providing your insurance is generally known as the insurer. What you are insured for is also often called cover.

Insurance and assurance

The term assurance is used mainly for life contracts, whereas insurance is used... see: How much is your premium?