Tipos De Seguros

UEES

Alex Kalil

Risk Management

Insurances

Due date: October 20, 2010













Abstract:
Many people and businesses don’t have any kind of insurance, or simply believe that acquiring insurances is useless and expensive. Some of them have experienced losses or damages of different types and haven’t been able to recover from it. Insurances allow people and manycompanies the choice of receiving a compensation or coverage for any kind of unexpected loss or harm that they might experience. It is an effective and smart opportunity for people and industries to acquire a guarantee or backup for their personal things and issues. Individuals may not be able to impede all the undesirable events and experiences that they live, but at least they can be preventive and beable to cover and insure their personal belongings and integrity.

Introduction:
Insurances can be defined in many ways. It is a reward or compensation for a specific possible loss, in exchange of regular payments. Insurances are also a financial way to protect people or companies from sudden losses. Some types of insurances are obligated by law, and others are optional. Insurance companiesdevelop a contract with their clients, and it specifies that customers agree to pay regular quotas so that the insurer would cover their expenses in case of a particular loss or harm. There are different types of insurances and the type of coverage (from both parties) also differs.

Types of insurances:
There are different types of insurances, and the most common ones are the following:

Healthinsurance:
It is an insurance that covers any specific loss or harm of a person’s physical or mental issues. Health insurance commonly covers accidents, injuries, medicine expenses, hospital rooms’ occupation,

transportation costs, doctors’ examinations, etc. For example, Ecuador’s government provides to many employees a health insurance through IEES (Instituto Ecuatoriano de SeguridadSocial). This particular type of insurance is obligatory. Employers must affiliate their employees to IESS, so they would be able to have a health insurance that will cover any potential harming or loss. Also, there are companies that offer private insurances, in which the client selects the amount and regularity of payments (premiums) to be made, depending on the contract.

Although there are healthinsurances which provide an excellent service at low or reasonable payments (premiums), some of them are seen as unethical and lucrative. According to Editorialist Mike Adams, “insurance companies just invest in companies whose products cause chronic degenerative disease, driving people towards more health care needs and therefore more health insurance 1”. He also points that “A new articlepublished in the American Journal of Public Health reveals that U.S. and Canadian health insurance businesses own nearly $2 billion worth of stock in fast food giants like Mc Donald’s, Taco Bell, Burger King, and others 2”. He is convinced that profits made by health insurance companies are reinvested in those fast food chains that allow people to be sick or to gain health problems, like obesity, highcholesterol, etc. Those diseases take people again to health insurance companies, in order to acquire a new insurance.

Life insurance:
This type of insurance provides a monetary aid to the insured’s family or descendants, in case that the insured dies. This insurance also covers the dead client’s burial and funeral expenses. Life insurance is mostly used in developed countries, especially inthose that have higher rates in savings and investments. There are three types of life

insurances. The first one is term insurance, which covers the clients’ death and provides monetary aid to the deceased’s family or closer relatives only for a determined period of time. If the client dies after the period that was determined in the insurance’s contract for coverage, the deceased client will...