Importance Of Insurance

What is Insurance?

Insurance is simply means of protection from financial losses.It is also a form of risk managament,certainly created for accept a contigent or uncertain loss. A group of people which provide Insurance is called as an Insurer or an Insurance Company and the customer(Insurance Buyer) of the Insurance company is known as Policyholder.

The insured recieves a contract called the Insurance policy, which consist of terms & conditions and circumstances under which the Insurer will compensate the Insured.

How the Insurance works?

Insurance is same as a product sold by an Insurance Company for getting you safe againts the risk of loss such as Damage, Death, Theft or anything else, When anyone buy’s a policy he/she makes a regular payment known as premiums to the Insurer, if he/she does a claim then, his/her insurer will payout for the loss and this is concered under the policy.

If he/she don’t made a claim, he/she won’t get his/her money back, whether it is pooled with the premiums of other policy holders who have taken out insurance with the same Insurance company. And also if he claims, the money comes from the pool of policy holder’s premiums.

What are the types of Insurance availabe in India?

  1. Life Insurance
  2. Auto Insurance
  3. Health Insurance
  4. Property Insurance
  5. Mobile Insurance
  6. Cycle Insurance
  7. Bite-Size Insurance

What are the Benefits of Insurance?

If you are going for a life Insurance plan then, you will definately enjoy the following advantages from that particular policy.

  1. Tax Benefits – If you are paying Insurance premiums then, you are eligible for tax benefits in India, under Section 80(C) and 10(10D) of the Income Tax Act. Thus, you will save a substantial sum of money as taxes by opting for a life Insurance plan.
  2. Encourages Saving Habit – Since, you need to pay policy premiums, buying such an Insurance policy promotes the habit of saving money.
  3. Secures Family’s Financial Future – The policy ensures your family’s financial independence is maintained even after your demise.
  4. Helps Plan Your Retirement – Certain Insurance policies also act as investment options.

For instance, pension plans offer a lump-sum payout as soon as you retire, helping you to fund your retirement.

Now that you know all about insurance policies read on to understand the various facts of other general Insurance policies. That’s all about the profits a person gets from an comapny of Insurance policy.

Conclusion?

You can buy any type of Insurance policy offline as well as online. There are various agents available in the market/insurance comapanies to help you buy a policy as well as there are various websites (like our’s) which help you in buying a policy .

Also, Confirm’s that you have done a proper research before choosing and investing in an Insurance company/Insurance policy.