Life Insurance for over 50

A new Beginner's Guide to Insurance policy

Getting 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 the majority of 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 product as part of their core investments. Associated with the approximately 5% of Indians that are insured the proportion of those adequately insured is a lot lower. Very few of the insured view insurance as purely that. There is perhaps no other financial product that has witnessed such rampant mis. Promoting at the hands of agents who are over enthusiastic in selling products backlinking insurance to investment earning them fat commissions. Life Insurance for over 50

What is Insurance?

Insurance is a way of growing 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 monthly or total annual compensation paid to the insurance company. Within the purest form of insurance if the predefined event does not occur until the period specific the amount of money paid as compensation is not retrieved. Insurance coverage 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 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 policy. To protect yourself and your family against unforeseen medical expenses you can opt for a Mediclaim policy. To safeguard your vehicle against robbery or destruction in accidents you could have a motor insurance policy. To protect your home against robbery, damage due to fire, flood and other challenges you can find dating a home insurance coverage.

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

Life Insurance

This form of insurance provides cover against financial danger in the event of premature death of the insured. There are twenty four life insurance companies enjoying in this arena of which Life Insurance Corporation of India is a general public sector company. There are several types of life insurance policy policies the simplest form of which is expression plan. The other complex 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 Confidence Company Ltd, Oriental Insurance coverage Company Ltd and Combined India Insurance carrier Ltd are in the public sector domain.

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