InsuranceAgents.com Compares Insurance to Banking

Insurance and banking, although both important entities in the financial sector, are two different philosophies. According to an article recently published on InsuranceAgents.com, insurance and banking affect consumers and serve them differently.

“Insurance and banking might sound like they’re related […] but for the most part, insurance and banking function on two completely different levels,” states the InsuranceAgents.com article titled, ‘The Difference Between Insurance and Banking’. “Banking is a dependable and constant institution where, for the most part, consumers know what they’re getting. Insurance, on the other hand, is based on a number of subjective variables that makes it a different experience for each separate individual.”

One’s eligibility in the various realms of banking depend mainly on their credit as well as their assets. However, insurance is a more complicated entity. Before being approved for coverage, insurance companies must deem if the individual is eligible. They do this by:

-Determining how much risk the individual possesses and shapes their premiums based on that risk
-Determining the specific terms and conditions of the policy that the individual will be offered
-Determining—if a claim is filed—whether or not that claim is valid or fraudulent
-Determining how much will be paid out per the terms and conditions outlined in the individual’s policy.

These factors are all different on a person-to-person basis which makes each insurance case a unique one. Underwriters are employed by insurance companies to assess each individual case and evaluate their factors. On the other hand, banking is more cut and dry as to how it functions for each individual.

Regardless, both banking and insurance offer their own unique advantages to consumers. Visit InsuranceAgents.com today to learn more about insurance as well as to learn ways to save on insurance.

staff contribution: Kyle Fitzsimmons

Contact Information

Tom Lustina

External SEO Director

Insuranceagents.com

Contact via E-mail