Guideone Insurance reviews

A Beginner's Guide to Insurance policy

Obtaining the right kind of insurance is central to sound financial planning. Several of us may have some form of insurance policy but very few really know what it is or why one must have it. For many Indians insurance is a form of investment or a superb tax saving avenue. Ask the average person about his or her investments and they will proudly mention an insurance coverage product as part of their core investments. Of the approximately 5% of Indians that are insured the proportion of those adequately insured is much lower. Very few of the insured view insurance as purely that. There is perhaps no other financial product that has seen such rampant mis. Promoting at the hands of agents who are over enthusiastic to offer products connecting insurance to investment generating them fat commissions. Guideone Insurance reviews

What is Insurance?

Insurance is a way of distributing out significant financial chance of a person or business entity. To a sizable group of individuals or business entities in the occurrence of an unfortunate event that is predefined. The cost of being insured is the month to month or total annual compensation paid to the insurance company. In the purest form of insurance if the predefined event does not occur until the period specified the money paid as compensation is not retrieved. Insurance policy is effectively a means of spreading risk among a pool of individuals who are insured and lighten their financial burden in the event of a shock.

Types of Insurance

Potentially any risk that can be quantified in conditions involving can be insured. To protect loved ones from reduction of income due to immature death one can have a life insurance policy. To guard yourself and your family against unanticipated medical expenses you can opt for a Mediclaim policy. To guard your vehicle against robbery or damage in accidents you might have a motor insurance policy. To guard your home against robbery, damage due to fireplace, flood and other challenges you can find dating a home insurance policy.

Most popular insurance types in India are life insurance, health insurance and motor insurance. Apart from these there are other forms as well which are discussed in quick in the following sentences. The insurance sector is regulated and monitored by IRDA (Insurance Regulatory and Development Authority).

Insurance coverage

This particular form of insurance provides cover against financial chance in the event of premature death of the insured. There are twenty-four life insurance companies enjoying in this arena of which Life insurance coverage Corporation of India is a open public sector company. There are several varieties of life insurance coverage policies the simplest form of which is term plan. The other intricate policies are endowment plan, whole life plan, money back plan, ULIPs and annuities.

General Insurance

Almost all other insurance policies besides Life Insurance fall under General Insurance. There are 24 general insurance firms in India of which 4 namely National Insurance Business Ltd. New India Guarantee Company Ltd, Oriental Insurance Company Ltd and Usa India Insurance provider Ltd are in the public field domain.

The biggest cake of non-life insurance in conditions of premiums underwritten is shared by engine insurance followed by engineering insurance and health insurance. Other varieties of insurance proposed by companies in India are home insurance, travel insurance, personal accident insurance, and business insurance.