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Saturday, July 24, 2021

A Beginner’s Guide to Insurance

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The right to the type of insurance is essential for good financial planning. Some of us may have some kind of insurance, but very few really understand what it is or why it should be. For most Indians, insurance is a great way to invest or a great way to save taxes. Ask the average person about their investments and they will proudly mention an insurance product as part of their main investments. Of the approximately 5% of Indians insured, the proportion is sufficiently insured. Very few policyholders offer such pure insurance. Perhaps no other financial product has seen so much proliferation of divestment by agents more than enthusiasts in selling products that link insurance to investment earning them fat fees.

What is insurance?

Insurance is a means of spreading the significant financial risks of an individual or business entity to a large group of individuals or business entities in a predetermined unfortunate event. The cost of the insurance is the monthly or annual compensation paid to the insurance company.

Insured and insured

When you are looking for financial risk protection and contracts with an insurance provider, you insure yourself and become your insurance company.

Total guaranteed

In life insurance, this is the amount of money that the policyholder agrees to pay when the policyholder dies before the default time. This does not include additional premiums for non-term insurance. In non-life insurance, this guaranteed amount can be called insurance coverage.

Premium

To protect against the financial risks involved in the insured party, the insured party must pay compensation. This is called thin. They can be paid annually, quarterly, monthly or depending on the termination of the contract. The total amount of the premiums paid is several times lower than the coverages of the insurance or it would not make much sense to obtain an insurance policy. The factors that determine the premium are the coverages, the number of years that claim the insurance, and the age of the policyholder (individual, car, etc.), among others.

Candidate

The beneficiary specified by the insured party for the guaranteed amount and other benefits, if any, is the candidate. In the case of life insurance, another person must be absent from the insured party.

The political term

The number of years you want to protect is the duration of the policy. The duration is determined by the policyholder at the time of purchase of the policy.

Runner

Some insurance policies may offer additional features as add-ons, regardless of actual coverage. These premiums can be used through additional premiums. If these features are to be purchased separately, they will be more expensive. For example, you can add a personal accident passenger with your life insurance.

Value and value of the paid transfer

If you want to leave a policy before his term ends, you can arrest him and get your money back. The amount that the insurance company will pay you, in this case, is called transmission value. The rule no longer exists. Instead, if you stop paying insurance premiums by half, but don’t withdraw the money named as paid. At the end of the term, the insurance company pays you in relation to the value paid.

Types of insurance

Any risk can be quantified in terms of insured money. To protect your loved ones from loss of income due to immature death, you can have life insurance. To protect yourself and your family from unexpected medical expenses, you can choose the application policy. To protect your vehicle from theft or damage caused by an accident, you can obtain car insurance. To protect your home from theft, fire, flooding, and other hazards, you can choose home insurance.

Life insurance

This type of insurance covers the financial risks in the event of premature death of the insured party. There are 24 life insurance companies involved in this area where the life insurance company in India is a public sector company. There are several types of life insurance and the easiest is the term plan. Other complex policies include the stop plan, the full life plan, the repayment plan, the UFO, and the annuities.

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