Life Insurance grace period

A new Beginner's Guide to Insurance policy

Obtaining the right kind of insurance is central to sound financial planning. Some of us may have some form of insurance coverage 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. Inquire 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 significantly 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 in selling products linking insurance to investment generating them fat commissions. Life Insurance grace period

Exactly what is Insurance?

Insurance is a way of growing out significant financial danger of a person or business entity. To a sizable group of individuals or business entities in the occurrence of an unfortunate event that is predetermined. The cost of being insured is the month to month or twelve-monthly compensation paid to the insurance company. In the purest form of insurance if the predefined event does not take place until the period specific the cash paid as payment is not retrieved. Insurance policy is effectively a means of spreading risk among a pool of men and women who are insured and lighten their financial burden in the event of a shock.

Types of Insurance

Potentially any risk that can be quantified in conditions of money can be insured. To safeguard loved ones from loss of income due to immature death one can have a life insurance policy. To safeguard yourself and your family against unexpected medical expenses you can opt for a Mediclaim policy. To protect your vehicle against robbery or damage in accidents you can have a motor insurance policy. To guard your home against theft, damage due to fire, flood and other challenges 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 sentences. The insurance sector is regulated and monitored by IRDA (Insurance Regulatory and Development Authority).

Life insurance coverage

This form of insurance provides cover against financial chance in the event of premature death of the insured. There are 24 life insurance companies actively playing in this arena of which Life Insurance Corporation of India is a general public sector company. There are several kinds of life insurance policy policies the simplest form of which is phrase plan. The other complex 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 providers in India of which 4 namely National Insurance Company Ltd. New India Assurance Company Ltd, Oriental Insurance policy Company Ltd and Combined India Insurance carrier Ltd are in the public field domain.

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