Life Insurance marketing strategy

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 coverage 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. Ask an average person about his/her investments and they will proudly mention an insurance policy product as part of their core investments. Associated with the approximately 5% of Indians that are covered by insurance 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 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 marketing strategy

Just what is Insurance?

Insurance is a way of distributing out significant financial chance of a person or business entity. To a big group of individuals or business entities in the occurrence of an unfortunate event that is predefined. The cost of being insured is the month-to-month or gross annual compensation paid to the insurance company. Inside the purest form of insurance if the predetermined event does not take place until the period specified the money paid as payment is not retrieved. Insurance is effectively a means of spreading risk among a pool of folks who are insured and brighten their financial burden in the event of a shock.

Types of Insurance

Potentially any risk that can be quantified in conditions pounds can be insured. To guard loved ones from reduction of income due to immature death one can have a life insurance coverage 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 damage in accidents you could have a motor insurance policy. To safeguard your home against fraud, damage due to fireplace, 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 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 24 life insurance companies enjoying in this arena of which Life Insurance Corporation of India is a public sector company. There are several types of life insurance coverage policies the simplest form of which is expression plan. The other complicated 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 companies in India of which 4 namely National Insurance Company Ltd. New India Confidence Company Ltd, Oriental Insurance policy Company Ltd and United India Insurance carrier Ltd are in the public sector domain.

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