Life Insurance process flow

The Beginner's Guide to Insurance

Getting the right kind of insurance is central to sound financial planning. Several of us may have some form of insurance policy but very few really understand what it is or why one must have it. For most Indians insurance coverage is a form of investment or a superb tax saving avenue. Inquire the average person about his/her investments and they will proudly mention an insurance coverage product as part of their core investments. Regarding the approximately 5% of Indians that are covered 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. Marketing at the hands of agents who are over enthusiastic to offer products backlinking insurance to investment earning them fat commissions. Life Insurance process flow

Just what is Insurance?

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

Types of Insurance coverage

Potentially any risk that may be quantified in conditions of money 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 safeguard your vehicle against robbery or harm in accidents you could have a motor insurance policy. To guard your home against theft, damage due to open fire, flood and other challenges you can find dating a home insurance.

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

Insurance coverage

This specific form of insurance provides cover against financial danger in the event of premature death of the insured. There are twenty-four life insurance companies playing in this arena of which Insurance coverage 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 complicated 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 Organization Ltd. New India Guarantee Company Ltd, Oriental Insurance policy Company Ltd and Usa India Insurance provider Ltd are in the public field domain.

The biggest curry of non-life insurance in conditions of premiums underwritten is shared by electric motor insurance followed by engineering insurance and health insurance policy. Other kinds of insurance made available from companies in India are home insurance, travel insurance, personal accident insurance, and business insurance.