INSURANCE

You can deal with your present insurance advisors if theyoffer you satisfactory services and you have trust in them. But take the policies which we recommend, because we focus on purpose of the policy with the minimum cost to you and investments with the maximum returns. We value for your money.

 

Insurance is a Social Security Tool:

Fund collected as premiums is held in a trust for the benefit of policy holders. It is a contract that pays the amount to the person or to the nominee. The policy is valid for the contracted duration if the premiums are paid.

 

Life Insurance

Purpose & Need of Insurance:

  1. Time of death is uncertain. If bread-earner is lost, dependents will suffer and if someone lives too long, expenses are to be met.
  2. You can become non-earner or liability due to accident / heart attack etc.
  3. Insurance tries to reduce the impact of the risk on dependants.
  4. There is a possibility of loss or damage. In case of its occurrence, it needs financial compensation.
  5. It removes the fear, worry and anxiety associated with future uncertainty.
  6. No bank or financial institution would advance loans unless insured against loss or damage.

 

Life insurance, in short, is concerned with 2main hazards that stand across the life-path of every person:

  1. That of dying prematurely leaves a dependent family to fend for itself.
  2. That of living too long without visible means of financial support.

With Profit and Without Profit Plans

  1. An insurance policy can be with or without profit. In the former, bonuses disclosed, if any, after periodical valuations are allotted to the policy and are payable along with the contracted amount.
  2. In without profit plan the contracted amount is paid without any addition. The premium rate charged for a with profit policy is therefore higher than for a without profit policy.

 

General Insurance

  1. Health Insurance :Classification of Insurable Risks with Example:

1)       Critical risk- Wiping out everything by tsunami causes total loss which can lead to bankruptcy

2)       Important risk  - Bread earner’s death may upset family which requires a lot of time to recover.

3)       Unimportant risk- Temporary illness

4)       Pure risk- Accidental death

  1. Other than Health Insurance :Classification of Insurable Risks with Example:

1)       Financial risk   - Factory damaged due to earthquake, Material in shop damaged due to flood

2)       Static risk- Fire

3)       Fundamental risk- Flood

4)       Particular risk  - Theft

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