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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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