Life Insurance bangladesh

The Beginner's Guide to Insurance

Obtaining the right kind of insurance is central to sound financial planning. Some of us may have some form of insurance but very few really understand what it is or why one must have it. For many Indians insurance coverage 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 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 connecting insurance to investment generating them fat commissions. Life Insurance bangladesh

Just what is Insurance?

Insurance is a way of growing 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 predefined. The cost of being insured is the month-to-month or total annual compensation paid to the company. In the purest form of insurance if the predetermined event does not occur until the period specified the amount of money paid as compensation is not retrieved. Insurance policy is effectively a means of spreading risk among a pool of men and women who are insured and lighten up their financial burden in the event of a shock.

Types of Insurance coverage

Potentially any risk that 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 guard yourself and your family against unexpected medical expenses you can opt for a Mediclaim policy. To guard your vehicle against robbery or destruction in accidents you might have a motor insurance policy. To safeguard your home against theft, damage due to fire, flood and other challenges you can choose a home insurance coverage.

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 brief in the following sentences. The insurance sector is regulated and monitored by IRDA (Insurance Regulatory and Development Authority).

Life insurance coverage

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

General Insurance

Just about 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 Guarantee Company Ltd, Oriental Insurance Company Ltd and Usa India Insurance carrier Ltd are in the public industry domain.

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