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 but very few really understand what it is or why one must have it. For most Indians insurance is a form of investment or a superb tax saving avenue. Inquire a typical person about his/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. Selling at the hands of agents who are over enthusiastic in selling products backlinking insurance to investment making them fat commissions. group Insurance policy GuidelinesJust what is Insurance?
Insurance is a way of spreading out significant financial chance of a person or business entity. To a big group of individuals or business entities in the occurrence of an unlucky event that is predetermined. The cost of being insured is the month to month or twelve-monthly compensation paid to the company. Inside the purest form of insurance if the predefined event does not happen until the period particular the amount of money paid as compensation is not retrieved. Insurance is effectively a means of spreading risk among a pool of men and women who are insured and lighten up their financial burden in the event of a shock.
Types of Insurance
[caption id="attachment_14367" align="alignleft" width="300"]
insurance word on business folder showing risk management concept[/caption] Potentially any risk that may be quantified in conditions involving can be insured. To guard loved ones from loss of income due to immature death one can have a life insurance policy 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 harm in accidents you can have a motor insurance policy. To safeguard your home against robbery, damage due to open fire, flood and other challenges you can choose a home insurance coverage.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 quick in the following paragraphs. The insurance sector is regulated and monitored by IRDA (Insurance Regulatory and Development Authority).
Life insurance coverage
This specific form of insurance provides cover against financial risk 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 term 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 Assurance Company Ltd, Oriental Insurance Company Ltd and Usa India Insurance carrier 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 executive insurance and health insurance policy. Other kinds of insurance proposed by companies in India are home insurance, travel insurance, personal accident insurance, and business insurance.