Themed Tours
Overview of an Insurance Policy
An insurance policy is a contract between an insurer and a policyholder. In exchange for a premium, the insurer provides financial protection against certain risks like accidents, illnesses, or losses.
Key Elements
- Premium: The regular payment by the policyholder.
- Coverage: The risks or damages the insurer protects against.
- Policy Limit: The maximum payout for a covered loss.
- Deductible: The amount paid by the policyholder before coverage starts.
- Exclusions: Situations not covered by the policy.