A new Beginner's Guide to Insurance policy
Having the right kind of insurance is central to sound financial planning. A few of us may have some form of insurance but very few really understand what it is or why one must have it. For most Indians insurance coverage is a form of investment or a superb tax saving avenue. Request an average person about his or her investments and they will proudly mention an insurance product as part of their core investments. Regarding the approximately 5% of Indians that are covered 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 witnessed such rampant mis. Marketing at the hands of agents who are over enthusiastic to offer products linking insurance to investment generating them fat commissions. General Insurance agent commissionExactly what is Insurance?
Insurance is a way of spreading out significant financial risk of a person or business entity. To a huge group of individuals or business entities in the occurrence of an unfortunate event that is predetermined. The cost of being insured is the monthly or total annual compensation paid to the insurance company. Inside the purest form of insurance if the predefined event does not happen until the period specific the cash paid as settlement is not retrieved. Insurance coverage is effectively a means of spreading risk among a pool of individuals who are insured and brighten their financial burden in the event of a shock.
Types of Insurance policy
[caption id="attachment_14367" align="alignleft" width="300"]
insurance word on business folder showing risk management concept[/caption] Potentially any risk that may be quantified in conditions of money can be insured. To protect loved ones from damage of income due to immature death one can have a life insurance policy policy. To guard yourself and your family against unexpected medical expenses you can opt for a Mediclaim policy. To safeguard your vehicle against robbery or damage in accidents you might have a motor insurance policy. To safeguard your home against robbery, damage due to open fire, flood and other challenges you can choose a home insurance policy.Most popular insurance forms in India are life insurance, health insurance and motor insurance. Apart from these there are other forms as well which are discussed in brief in the following paragraphs. 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 24 life insurance companies enjoying in this arena of which Life insurance coverage Corporation of India is a public sector company. There are several types of life insurance policies the simplest form of which is phrase plan. The other complicated 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 Organization Ltd. New India Assurance Company Ltd, Oriental Insurance coverage Company Ltd and Usa India Insurance carrier Ltd are in the public field domain.
The biggest cake of non-life insurance in conditions of premiums underwritten is shared by motor insurance followed by executive insurance and health insurance. Other varieties of insurance proposed by companies in India are home insurance, travel insurance, personal accident insurance, and business insurance.