General Insurance brokers inc

A new Beginner's Guide to Insurance

Having the right kind of insurance is central to sound financial planning. A few of us may have some form of insurance policy but very few really determine what it is or why one must have it. For many Indians insurance policy is a form of investment or a superb tax saving avenue. Ask the average person about his/her investments and they will proudly mention an insurance policy product as part of their core investments. Regarding 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 witnessed such rampant mis. Marketing at the hands of agents who are over enthusiastic to offer products linking insurance to investment making them fat commissions. General Insurance brokers inc

Just what is Insurance?

Insurance is a way of distributing out significant financial risk of a person or business entity. To a big group of individuals or business entities in the occurrence of an unlucky event that is predefined. The cost of being insured is the month to month or twelve-monthly compensation paid to the company. Within the purest form of insurance if the predefined event does not happen until the period specified the cash paid as settlement is not retrieved. Insurance is effectively a means of spreading risk among a pool of individuals who are insured and lighten up their financial burden in the event of a shock.

Types of Insurance coverage

Potentially any risk which can be quantified in conditions of money can be insured. To safeguard loved ones from reduction of income due to immature death one can have a life insurance policy policy. To protect 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 guard your home against robbery, damage due to fireplace, flood and other challenges you can choose 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 paragraphs. The insurance sector is regulated and monitored by IRDA (Insurance Regulatory and Development Authority).

Life Insurance

This specific form of insurance provides cover against financial danger in the event of premature death of the insured. There are 24 life insurance companies enjoying in this arena of which Life Insurance Corporation of India is a public sector company. There are several kinds of life insurance policy policies the simplest form of which is expression plan. The other intricate policies are endowment plan, whole life plan, money back plan, ULIPs and annuities.

General Insurance

All other insurance policies besides Life Insurance fall under General Insurance. There are 24 general insurance providers in India of which 4 namely National Insurance Organization Ltd. New India Guarantee Company Ltd, Oriental Insurance policy Company Ltd and United India Insurance carrier Ltd are in the public sector domain.

The biggest pie of non-life insurance in conditions of premiums underwritten is shared by motor insurance followed by architectural insurance and health insurance policy. Other types of insurance proposed by companies in India are home insurance, travel cover, personal accident insurance, and business insurance.