Importance of Insurance
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Moreover, the money spent in insurance contracts can be a good savings cum investment for our life and the our family's life. This arrangement takes care of the welfare of our family. We can make a choice of good plans to cover the basic risks of our living like life, health, home, vehicles, etc.
For our business or profession, we should go for the policies that will insure the risks associated with our products, fixtures & fitting like plant and machinery etc.
What is Insurance?
Risks involved in our life in many way. Death is the unbearable and irreparable of all risks. That too untimely death leaves shock and vacuum in a family. To take care of such unfortunate death or any sort of risk, a mechanism is in place to transfer the risk from one place or person to another. When risk are managed by self without transfer to another, they are " Retained Risks" and they are called as "Transferred Risk" when passed on to another for a consideration or price which is popularly known as " Premium". As
the cost is heavy, an individual cannot bear the risk of others. However, an
institution like Cooperative or Firm or Corporate concern can manage them .
Cooperative Society for Death relief is an example for managing the expenses
arising from death of a member. This is very popular among fishermen folks
whose life is at risk when venturing out into the sea.
Types of Insurance
There
are basically two types of insurance: Life and Non-Life insurance.
Life
type is for compensating the dependants in the event of death of the policy
holder. This has two sub categories as 1) pure insurance or term insurance
where premium rate will be lower but no returns or refunds made if the person
survives after the policy period 2) endowment type, where death and maturity
benefits are combined ,which naturally comes at a higher premium. Non life
products cover the risks like Accident, Marine, Health, Goods, Agricultural
crops, Cash-in-transit, etc. The popular Mediclaim policy belongs to Health
insurance category. Apart from these, third type exists as Reinsurance which
insures risks like Satellite, Spacecraft, etc…involving huge amounts and also
when the sum insured exceeds Rs.100 crores for each case.
The
benefits of insurance will be made fully under all policies for Life
insurance whereas only one insurance amount will be settled in the case of
Non-life insurance type. Another difference is the period of cover : one year
for non-life policy renewable every year and longer period for life
insurance.
Do's & Don'ts for Insurance
1)
Always read the contract notes when received after committing to an insurance cover.
Possibilities are there, that even after taking all precautions prior to buying
the insurance product, some exclusions to the risks
coverage.
2)
Always keep the policy in force by paying the premium regularly. Your claim
will be rejected if you have not paid the premium.
3)
Always Keep the insurance company informed if you make any changes in the
Address, change in the nature and composition of assets covered,etc..This issue
crops up in the case of business assets and movable assets like vehicles . When
you buy a second hand asset, the risk is more: you have to ensure the title is
transferred in your name before taking the insurance.
4)
Always buy Life insurance covers from the reputed companies which have a good
name in the market .New insurers tend to be inclined towards more business and
profit , rather than the payment of the claims under their policies.
Now you can understand that Insurance cost is Not a Liability but it is an Investment for Future
asset.
If you are living in Delhi then call (Pradip: 9958781151) or pass it to someone or email : hellopkr@gmail.com for get a insurance policy ( LIC of India and Starhealth Insurance). -:Be insure have happy life:-
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