The so-called insurance, as its name implies, is a guarantee made before things happen. Insurance companies must set standards and charging standards according to risks and benefits. For people who have already suffered from serious illness, the following treatment costs are inevitable, which greatly exceeds the premiums they can afford. In the insurance industry, this is called uninsured. No insurance company will be willing to sell insurance to such people.
Extended data:
1. Subject matter of insurance: the subject matter of insurance is the insured, the subject matter of life insurance is the body and life of the insured, and property insurance in a broad sense is insurance with property and its related economic interests and liability for damages as the subject matter of insurance.
Among them, the object of property loss insurance is the insured property, the object of liability insurance is the economic compensation responsibility that the insured has to bear, and the object of credit insurance is the economic loss caused by the insured's credit.
2. Insurable interest: Insurable interest refers to the legally recognized interest of the insured in the subject matter insured. Usually, the insured will suffer economic losses due to the damage or loss of the subject matter insured and gain benefits due to the preservation of the subject matter insured.
Insurable interest can only be established if it is legally recognized, economically determined and unpredictable. Generally speaking, the insurable interest of property insurance exists when the insured accident occurs, and then the loss can be compensated; The insurance interest of life insurance must exist when the insurance contract is concluded to prevent moral hazard.
3. Taking life insurance as an example, the insured has unlimited insurable rights and interests for himself and his spouse. In some countries and regions, if the insured and the insured are related by blood, they can also constitute insurable rights and interests. In addition, creditors also have insurable rights and interests to debtors who have not paid off their loans.
4. The conditions for its establishment are: the insurable interest must be legal, of economic value, certain and interested.
5. Personal insurance is insurance with human life and body as the subject matter. When people suffer from unfortunate accidents or lose their working ability, disability, death or retirement due to illness or old age, according to the insurance contract, the insurer pays insurance money to the insured or beneficiary to solve their financial difficulties caused by illness, disability, old age and death.
Life insurance is under the socialist system. Life insurance is one of the forms of material security for workers when they encounter unfortunate accidents, lose their ability to work or their families die.
6. The life insurance fund uniformly used by the state is established by the insured's timely payment. Personal insurance is also a special form of organizing residents' savings. When the insured reaches the age stipulated in the insurance contract, the state gives him some money and so on.
Personal insurance can be divided into voluntary insurance and compulsory insurance according to the form of insurance; According to the nature of personal danger, it can be divided into personal insurance and accidental injury insurance.
References:
Baidu encyclopedia-insurance