Are You Caring For Your Family? If Yes, First Get Insured
Insurance is a cost and utter waste. This is what many people consider when the insurance subject is discussed. Remember, this cost is the least when you compare the benefits gained when an unfortunate event like death, accident, theft, etc. occurs. The money spent in insurance contracts is a good saving cum investment. Furthermore, it takes care of the welfare of your family.
You can make a choice of good plans to cover the basic
risks like Health, Home, Vehicles, etc.. For your business or profession, go
for the policies that will insure the risks associated with your products,
furniture and fittings, plant and machinery, etc..
What is an insurance? The risks involved in our
life are multifarious. Sudden demise of a person is an unbearable and
irreparable loss to everybody. That too, an untimely death leaves shock and
void in the family. To protect against such unfortunate events and risks, a
mechanism called insurance is in place.
Types of Insurance: Basically, two types of
insurance exist as Life and non-Life insurance. The First type is for
compensating the dependents upon the death of the policy holder. It has two
varieties 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, comes at a
higher premium. Non-life products cover the risks like Accident, Marine,
Health, Goods, Agricultural crops, Cash-in-transit, etc. Additionally, a third
type exists as Reinsurance, which insures risks like Satellite, Spacecraft,
etc... involving huge amounts.
Do's & Don'ts of Insurance: 1) Read the
contract notes. Even after taking all precautions before buying an insurance
product, some exclusions are made to the risks covered. 2) Keep the policy in
force by paying the premium regularly. Your claim will be rejected if you have
not paid the premium. 3) Inform the insurance company about any changes in your
address, the nature and composition of assets covered, etc.. These issues crop
up in the case of business assets and movable assets like vehicles. When you
acquire a second-hand asset, the risk is more: you have to make sure the title
is transferred into your name. 4) Always source the insurance products from the
reputed companies that have a good reputation in the market. New insurers tend
to secure more business and profit, but avoid the payment of the claims under
their policies.
So, Insurance is a not a liability, but an investment
for the future. Insurance agent alone provides solace and relief and in fact
brings good news, when others simply console when a family bereaved
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