Life Insurance malaysia

A new Beginner's Guide to Insurance coverage

Getting 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 understand what it is or why one must have it. For the majority of Indians insurance policy is a form of investment or a superb tax saving avenue. Ask an average person about his or her investments and they will proudly mention an insurance product as part of their core investments. Of the approximately 5% of Indians that are insured 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 observed such rampant mis. Marketing at the hands of agents who are over enthusiastic in selling products linking insurance to investment earning them fat commissions. Life Insurance malaysia

What is Insurance?

Insurance is a way of growing out significant financial risk 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 month to month or gross annual compensation paid to the company. In the purest form of insurance if the predetermined event does not happen until the period specific the amount of money paid as settlement is not retrieved. Insurance policy 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 coverage

Potentially any risk which can 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 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 harm in accidents you can have a motor insurance policy. To safeguard your home against robbery, damage due to open fire, flood and other perils you can choose a home insurance.

Most popular insurance types 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).

Insurance coverage

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 public sector company. There are several kinds of life insurance policies the simplest form of which is term plan. The other complicated 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 firms in India of which 4 namely National Insurance Business Ltd. New India Assurance Company Ltd, Oriental Insurance coverage Company Ltd and United 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 electric motor insurance followed by executive insurance and health insurance policy. Other types of insurance provided by companies in India are home insurance, travel insurance, personal accident insurance, and business insurance.