Before going to say anything on insurance I would urge you please ask a question to yourself? What happens when the only earner of a family dies suddenly due to an accident or any health illness? There might arise a lot of questions. How the rest of the family will survive now? Who will take the responsibility of providing any sort of financial help or assistance? How their children’s education expenses will be borne? So one after another there are many questions will come to your mind. But there will be no suitable answer with us, isn’t it? Now here plays the role of having insurance. The insurance is a legal contract between the insurer and the insured where the insured is the person or policy owner of that insurance policy & the insurer is the insurance company who is providing the service. When you buy insurance, you purchase protection against any sort of unexpected financial loss. In other words, we can say it is the process where we pay some amount of money to the insurance company for taking our financial losses or any perils that occur, as per the terms and conditions enrolled in the insurance policy document. The insurance is a very broad concept to understand and learn. Now I think the reader will gain some sort of idea of knowing what is insurance all about.
A closer look at the different types of insurance :
Life insurance–life insurance is a contract between an insurance policyholder and an insurance company and in return, the insurance company promises to pay a sum of money in exchange for a premium, or amount from the policyholder in case of policyholder death the Said amount from the insurance company will be paid to the nominee of that policyholder. One can choose the sum assured required to fulfill or meet their requirements in times of any unfortunate death of the policyholder. Pure-term insurance is a much-recommended one rather than an investment plan. Only by paying a very small amount one can choose the best term life plan. A term plan has no maturity benefit.
Health insurance–Health insurance is a Health product that covers the medical and surgical expenses of the insured named person. The Health insurance company reimburses the expenses incurred due to illness or any injury occur
Auto insurance–This policy covers your motor car, bike, scooter, etc, or any type of commercial vehicle in case of loss or damages to your vehicle the insurance company will pay the amount as per the agreement of the policy. A yearly payment is a must by the policy taker.
How to make insurance work for you
Now let’s talk about what is the purpose of having insurance. After knowing about insurance we can simply explain it as the transfer of our financial losses to another one. It helps to protect us individually and all our family members too. We can secure our previous life by having a good and planned insurance policy.
What are the benefits of insurance?
Below are some of the main benefits of insurance
- Risk sharing
- Assurance
- capital generation
- Value of risk
- Provides a saving habit
The benefits of having a genuine insurance contract are truly tremendous and remarkable. Speak to your nearest insurance company to know more about Features and benefits and select the best plan for yourself and your loved ones.
What are the 7 principles of insurance?
The following are the 7 principles stated
- Insurable interest
- utmost good faith
- Indemnity
- proximate cause
- subrogation
- contribution
- Loss of minimization
The Importance of insurance: A Comprehensive Guide
So does insurance play a crucial role or not? The answer is yes without any confusion. By paying only a minimal amount of premium to the insurance company we all can sleep risk-free. No one can deny the necessity and importance of insurance. I urged everyone who is the only breadearner at home, to pleaseat least first secure yourself by choosing a well-planned insurance policy so that your loved ones can stay healthy and debt-free forever in times of your demise or any uncertainty. Why wait any longer, consult with your insurance advisor or company today