Having the right type of
insurance is essential for good financial planning. Ask the
average person of his / her investment and proudly mention an insurance product
as part of its main investments. Very few insurance assured perceived as purely
that. There is perhaps no other financial product that has witnessed the
mis-selling rampant in the hands of agents who are in the most enthusiastic
sales of investment-linked insurance products makes them fat commissions.
The cost of being insured is the monthly or annual fee paid to the insurance company. In the purest form of insurance if the default event does not occur until the prescribed period the money paid as compensation are not valued.
The cost of being insured is the monthly or annual fee paid to the insurance company. In the purest form of insurance if the default event does not occur until the prescribed period the money paid as compensation are not valued.
Insured and the Insurer
When looking for a protection against financial risk and make a contract with an insurance provider you become insured and the insurance company becomes your insurer.
Sum insured
In life insurance this is the amount of money that the insurer promises to pay when the insured dies before the preset time. This does not include additional bonuses if non-term insurance. In non-life insurance value of this guarantee can be called as insurance coverage.
Price
For protection against the financial risk of an insurer offers the insured must pay compensation. This is known as premium. Total premiums paid is several times smaller than the insurance coverage, or would not make much sense to look safe at all.
Candidate
The beneficiary is specified by the insured to receive the sum insured and other benefits, if the candidate. In the case of life insurance should be someone other than the insured.
Long-term policy
The number of years you want to protect is the term of the policy. Term is decided by the insured when purchasing the policy.
Knight
Some insurance policies may offer additional features like add-ons in addition to the actual coverage. These can be availed by paying additional premiums. For example, you can add a personal accident rider with your life insurance.
The policy ceases to exist. Instead, if you just stop paying halfway bonuses, but do not remove the money amount is known as paid. At the end of the period, the insurer pays in proportion to the amount paid.
Now that you know the terms that is how insurance works in simple words. An insurance company pools premiums from a large group of people who want to insure against a certain type of loss.
The beneficiary is specified by the insured to receive the sum insured and other benefits, if the candidate. In the case of life insurance should be someone other than the insured.
Long-term policy
The number of years you want to protect is the term of the policy. Term is decided by the insured when purchasing the policy.
Knight
Some insurance policies may offer additional features like add-ons in addition to the actual coverage. These can be availed by paying additional premiums. For example, you can add a personal accident rider with your life insurance.
The policy ceases to exist. Instead, if you just stop paying halfway bonuses, but do not remove the money amount is known as paid. At the end of the period, the insurer pays in proportion to the amount paid.
Now that you know the terms that is how insurance works in simple words. An insurance company pools premiums from a large group of people who want to insure against a certain type of loss.
Potentially, any risk that can be quantified in terms of money can be assured. To protect your loved ones from the loss of income due to an immature death can have a life insurance policy. To protect your vehicle against theft or damage in an accident you may have a car insurance policy. To protect your home against theft, damage due to fire, floods and other hazards that you can choose a home insurance.
Most popular forms of insurance in India are life insurance, health insurance and car insurance. The insurance industry is regulated and controlled by IRDA (Insurance Regulatory Authority and Development).
Life insurance
This form of insurance provides cover against financial risk in the event of premature death of the insured. There are 24 life insurance companies playing in this area Life Insurance Corporation of India, including is a public sector company. There are different forms of life insurance policies as simple as that is the plan period. Other policies are complex staffing plan, life plan, to return the money of the plan, ULIPs and annuities.
General insurance
All other insurance policies and life insurance within general insurance. There are 24 general insurance companies in India, including 4 including National Insurance Company Ltd, New India Assurance Company Ltd, Oriental Insurance Company Ltd and United India Insurance Company Ltd are in the field of public sector.
The biggest cake of non-life insurance in terms of written premiums is shared by motor insurance followed by engineering and insurance Medicare. Other forms of insurance offered by companies in India are home insurance, travel insurance, accident insurance and business insurance.
Buying insurance
There are a number of policies to choose several. Read the policy documents to find out what is covered, what features and events that are excluded from being insured.
1. Know your needs
Determine what good or incident should be protected against loss / damage. It is the life, health, car, home? The biggest mistake because it comes to buying insurance, especially life insurance is to see it as an investment. Clubbing insurance and investment in one product is a bad idea. Beware of agents who want to talk you into buying unnecessary policies such as life insurance for the child, the credit card insurance, unemployment insurance and so on. Instead of buying a separate insurance for active or specific incidents seek policies that cover a range of possible events within the same coverage. Whenever possible, choose the drivers that make sense, instead of buying them separately. Unless there is a good chance of an event happening that you do not need insurance for it. For example, unless you are very prone to accidents and disability due to their nature of work or other reasons that do not need accident insurance. A good life insurance policy with the driver of the accidental death or pilot renunciation premium or disability income rider will do the job.
2. Understand Product features and fees
The worst way to choose insurance or an insurance product is blind on the recommendation of an agent or friend. Many insurance policies can now be purchased online. Buying online is smarter because premiums are lower due to the elimination of agent fees. If you buy online in the case of life insurance, tell the agent that you are only interested in term insurance.
The insurance premiums for several years and means a considerable amount of money.
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