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Insurance is the equitable transfer of the risk of a loss, from one
entity to another in exchange for payment. It is a form of risk
management primarily used to hedge against the risk of a contingent,
uncertain loss.
An insurer, or insurance
carrier, is a company selling the insurance; the insured, or
policyholder, is the person or entity buying the insurance policy. The
amount of money to be charged for a certain amount of insurance coverage
is called the premium. Risk management, the practice of appraising and
controlling risk, has evolved as a discrete field of study and practice.
The transaction involves the insured
assuming a guaranteed and known relatively small loss in the form of
payment to the insurer in exchange for the insurer's promise to
compensate (indemnify) the insured in the case of a financial (personal)
loss. The insured receives a contract, called the insurance policy,
which details the conditions and circumstances under which the insured
will be financially compensated.
Why we need Insurance ?
Insurance is there to provide
protection for yourself, your investment and your business. Disaster
could take any form; car breaks down, roof leaks, a major home fire, an
automobile accident that leads to a legal action and someone in the
family becomes ill.
Insurance gives you peace of mind and
you know that if anything happens to you, your family or your business
that you will be financially secure.
The best course of action is to prepare for the worst and hope for the best. * Types Of Insurance
: 1) Life Insurance
2) General Insurance
* Some Points Concern to it
:
Term Insurance
This type of life insurance policy is a contract between
the insured and the life insurance company to pay the persons/s he has
given entitlement to receive the money, in the case of his/her death,
after a certain period of time. These policies can be taken for 5, 10,
15, 20 or 30 years.
Endowment Policy
In an endowment policy, periodic premiums are received
by the insured person and a lump sum is received either on the death of
the insured or once the policy period expires.
Money Back Life Insurance Policy
This policy offers the payment of partial survival
benefits (money back), as is determined in the insurance contract, while
the insured is still alive. In case the insured dies during the period
of the policy, the beneficiary gets the full sum insured without the
deduction of the money back amount given so far.
Group Life Insurance
This is when a group of people have been named under a
single life insurance policy. It is popular for an employer or a company
to add employees under the same policy. Each member of the group has a
certificate as legal evidence of insurance.
Unit Linked Insurance Plan
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