Insurance career Guide

The Beginner's Guide to Insurance policy

Obtaining 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 determine what it is or why one must have it. For most Indians insurance policy is a form of investment or a superb tax saving avenue. Inquire an average person about his/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 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 seen such rampant mis. Promoting at the hands of agents who are over enthusiastic in selling products linking insurance to investment generating them fat commissions. Insurance career Guide

Just 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 regrettable event that is predetermined. The cost of being insured is the monthly or total annual compensation paid to the company. Inside the purest form of insurance if the predefined event does not happen until the period specified the amount of money paid as compensation is not retrieved. Insurance 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 coverage

Potentially any risk which can be quantified in conditions involving can be insured. To safeguard loved ones from loss of income due to immature death one can have a life insurance coverage policy. To protect yourself and your family against unanticipated medical expenses you can opt for a Mediclaim policy. To protect your vehicle against robbery or destruction in accidents you could have a motor insurance policy. To safeguard your home against robbery, damage due to fireplace, flood and other perils you can choose a home insurance policy.

Most popular insurance kinds 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 particular 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 general public sector company. There are several varieties of life insurance policies the simplest form of which is expression plan. The other complicated 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 Business Ltd. New India Guarantee Company Ltd, Oriental Insurance policy Company Ltd and Usa India Insurance Company 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 engineering insurance and health insurance. Other kinds of insurance proposed by companies in India are home insurance, travel insurance, personal accident insurance, and business insurance.