Thursday, 1 February 2018

How Insurance Works !!

Insurance is one of the Most Important financial Investments an Individual will make in their Lifetime. Insurance Policy could ensure that your Family is looked after well & are Financially Secure in case of an Unfortunate Event.

Risks and Uncertainties are part of Life's accident, illness, theft, natural disaster they are waiting to happen. Insurance then is answer to the uncertain risks of life. If we cannot beat man-made and natural calamities, well, at least be prepared for them.

Insurance is a contract between two parties - the Insurer (the insurance company) and the Insured (the person seeking the cover) wherein the Insurer agrees to pay the insured for financial losses arising out of any unforeseen events in return for a regular payment of "premium". These Unforeseen events are defined as "Risk" and that is why Insurance is called a Risk Cover. Hence, Insurance is essentially the means to financially compensate for losses that life throws at people.

Roles of Insurance

1) Insurance as “Investment”

Insurance is an attractive option for investment. While most people recognize the risk hedging and tax saving potential of insurance, many are not aware of its advantages as an investment option as well.

2) Insurance as “Risk cover”

First and foremost, insurance is about risk cover and protection - financial protection, to be more precise - to help outlast life's unpredictable losses. Designed to safeguard against losses suffered on account of any unforeseen event, insurance provides you with that unique sense of security that no other form of investment provides. By buying Insurance, we buy peace of mind and are prepared to face any financial demand that would hit the family in case of an untimely demise.

3) Insurance as “Tax planning”

Insurance serves as an excellent tax saving mechanism too. The Government of India has offered tax incentives to life insurance products in order to facilitate the flow of funds into productive assets.

For More Details Download Insurance Guide: LifeLine Insurance & Financial Expert

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