Excess insurance provides coverage that kicks in after the limits of an underlying primary insurance policy have been exhausted, offering additional protection against large claims. It is often used by individuals and businesses to safeguard against catastrophic losses that exceed the limits of their standard insurance policies.
Coverage level is like a safety net that catches you when you fall, but for your stuff or health. It tells you how much help you can get if something bad happens, like if your toy breaks or you get sick.
Insurance needs are determined by assessing the financial risks one faces and the potential impact of those risks on one's financial stability. It involves evaluating personal circumstances, assets, and liabilities to ensure adequate coverage against unforeseen events.
Insurance coverage balance refers to the optimal level of insurance protection that adequately covers potential risks without overpaying for unnecessary coverage. It involves assessing personal or business risks, understanding policy details, and comparing costs to ensure financial security and efficiency.
Covered claims refer to the insurance policy claims that an insurer agrees to pay under the terms and conditions specified in an insurance contract. These claims are determined by various factors such as policy limits, exclusions, and policyholder obligations, and play a crucial role in risk management for both insurers and insureds.