Insurance is of prime importance to protect yourself and your beloved ones. It may be a little bit expensive and may seem to be like wastage of money if you don’t go for a claim. But you can realize the actual requirements of it. You can feel what great role insurance plays in your life. Insurance save your life and property as well from various dangers. According to the law and economy insurance is a kind of risk management which is primarily used to combat certain undesirable situations resulting from various reasons such as illness, accident, vandalism, natural disasters and so on.
Insurance is an effective measure which is taken against all kinds of conditional looses in future. It helps us to hedge any kind of risks occurred anytime in your life. It is a kind of legal agreement where a person can be protected from contingent risks of losses by financial means. It also saves individuals and societies from daily life risks.
The contract is referred to as policy. The insurance policy can be provided by various insurance companies. The insurance company charges a regular amount to its clients which could be paid either in part or entirely if he is facing any loss. This charged amount is known as premium.
We can’t deny the fact that it is not at all possible to avoid losses or damages. It’s quite obvious that people may fall ill and there might be a fair chance of demise of your loved ones. Sometimes it comes to our properties which could be damaged or theft. If any of the situations would be evolved then we have to face the loss of our income or savings. So insurance is the right choice which secures you financially against any accidents so that it doesn’t affect so much your regular life.
The policy holder can be qualified to get a loan against the security of the policy which can be provided from the banks or from the insurance company.
There are different kinds of insurance policies. They are listed bellow. It can give you a brief knowledge regarding insurance.
It secures the insured’s life. The insurance company is bound by the
law to reimburse a certain amount of money to the beneficiary after
the death of the policy holder. The proceeding can be done by paying
a lump sum amount or an annuity to the decedent’s family.
According to this policy the insurer will pay an amount to the
insured while he is suffering from any health hazard. All the cost
of medical treatment are covered by it .This insurance policy is
known as Mediclaim.
This kind of insurance policy can be obtained in two categories.
First one is simple disability insurance and the second one is
Total disability insurance. With simple disability policy the
Policy holder achieve financial support from his insurer on
monthly basis. If he is permanently disabled to work due to any i
njury or illness. It covers the total reimbursement if the insuredget permanently disabled
There is also general insurance which includes automobile insurance, business insurance, property insurance and so on. There are some types of social insurances such as education, heath and employment insurance. The Government provides insurance policy to needy students for their education purpose. Those persons who are unemployed are able to get an allowance to protect their heath.
So insurance provide you and your family a guarantee of secured life.