Almost all of us have insurance.

When your insurer gives you the policy document,

generally, all you do is glance over the decorated words in the policy and pile it
up with the other bunch of financial papers on your desk, right? If you spend
thousands of dollars each year on insurance, don't you think that you should know
all about it? Your insurance advisor is always there for you to help you understand
the tricky terms in the insurance forms, but you should also know for yourself what
your contract says. In this article, we'll make reading your insurance contract
easy, so you understand their basic principles and how they are pu
t to use in daily lif
Insurance Contract Essentials
Offer and Acceptance. When applying for insurance, the first thing you do is get
the proposal form of a particular insurance company. After filling in the requested
details, you send the form to the company (sometimes with a premium check). This is
your offer. If the insurance company agrees to insure you, this is called
acceptance. In some cases, your insurer may agree to accept your offer after making
some changes to your proposed terms.
Consideration. This is the premium or the future premiums that you have pay to your
insurance company. For insurers, consideration also refers to the money paid out to
you should you file an insurance claim. This means that each party to the contract
must provide some value to the relationship.
Legal Capacity. You need to be legally competent to enter into an agreement with
your insurer. If you are a minor or are mentally ill, for example, then you may not
be qualified to make contracts. Similarly, insurers are considered to be competent
if they are licensed under the prevailing regulations that govern them.

Legal Purpose. If the purpose of your contract is to encourage illegal activities,

it is invalid.e