Life Insurance jokes

A Beginner's Guide to Insurance policy

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 know what it is or why one must have it. For most Indians insurance is a form of investment or a superb tax saving avenue. Request a typical person about his/her investments and they will proudly mention an insurance coverage product as part of their core investments. Associated with 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. Promoting at the hands of agents who are over enthusiastic in selling products backlinking insurance to investment generating them fat commissions. Life Insurance jokes

Exactly what is Insurance?

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

Types of Insurance policy

Potentially any risk that may be quantified in conditions involving can be insured. To protect loved ones from loss of income due to immature death one can have a life insurance coverage policy. To safeguard yourself and your family against unanticipated medical expenses you can opt for a Mediclaim policy. To guard your vehicle against robbery or destruction in accidents you can have a motor insurance policy. To guard your home against fraud, damage due to fireplace, flood and other perils you can find dating 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 short 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 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 types 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 companies in India of which 4 namely National Insurance Business Ltd. New India Guarantee Company Ltd, Oriental Insurance policy Company Ltd and Combined India Insurance Company 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 executive insurance and health insurance coverage. Other types of insurance made available from companies in India are home insurance, travel insurance, personal accident insurance, and business insurance.