Hello welcome to Instaloverz, So here we are with a very inspirational article which is based on insurance. Insurance is the most common thing in everybody life. There are various types of insurance policies available by many companies. But if you are willing to learn more about insurance then you must read this full article So check out “Learn More About Insurance, Benefits of Insurance and Types of Insurance Policies”
WHAT IS AN INSURANCE ?
Insurance is a contract representing a policy in which the an entity or an individual gets financial protection or reimbursement against specified loss, damage, illness, or death from the insurance company. Under an insurance contract the insurance company pools customers’ dangers to make installments more moderate for the safeguarded. Insurance policies are utilized to protect costumer against the risk of financial losses, any, big or small.
TYPES OF INSURANCE POLICIES
There are many types of insurance policies available and any individual or business firm can find an insurance company who can provide them insurance services. The most common type of insurance policies are personal insurance such as life insurance, property insurance, health insurance, etc. Term life insurance, whole life insurance, endowment plans, money back policies are some insurance that one must have.
The most two common insurance are whole life insurance where an individual pays and amount till the death of policy holder and term life insurance where an individual pays fixed amount for fixed time period. Term plans are the most basic form of life insurance.Endowment plans differ form other plans. This plans have higher charges but they provide assured sum in both death and health issues.Unit linked insurance plans are traditional insurance policies.Unit linked insurance are long term insurance policies which pays and assured sum of amount on death.
In this the assured sum is paid to the nominee of the insurance holder.Whole life insurance is again long term insurance that an individual pays over life time to which corpus is paid to the family.Money back insurance is such insurance in which an individual has to pay periodic payments over the policy term till the agreed time. If the policy holder survive till date then the holder gets the assured sum and if he or she passes out the beneficiary gets the balanced amount.
BENEFITS OF INSURANCE POLICY
Insurance benefits in numerous ways than an individual can think of it. Insurance benefits both an individual or a business firm in all the possible ways. The following are the benefits of having and insurance policy;
- The most basic benefit of having insurance is that they cover losses. An insurance policy is a contract that protects individuals and firms from any type of loss.
- Insurance policy provides cash flow to the holder at the time of uncertainties. Insurance provide cash flow and cover the losses so that one doesn’t have to use his own pocket’s money to bear the losses.
- Having insurance policy is a strong evidence that you have backup financial resources at the time of crisis or uncertainties.
- Another important benefit of insurance is that you can freely work on the projects which have a little chances of risk or loss.
- Insurance makes easy to work setting aside the financial consequences of risk and the saved money can be invested somewhere else.
- Insurance policies provide a source of investment. They invest the sum in number of funds, assets and others.
- Insurance also helps to reduce the stress of accident victims and differently able people.
IMPORTANCE OF INSURANCE POLICY
When an individual carries out any business activities he is directly linked with risks and uncertainties. Business insurance protects it from shutting down. Losses from fire, floods, tornadoes, etc are covered and avoids business from shutting down. For instance, if a person is having insurance for his vehicle. If he meets an accident and damage is done to his vehicle. Having an insurance can saves his money which he will use to repair his vehicle.
Business faces thefts a lot. Warehouses and godowns faces thefts very often. There are chances that raw materials can be stole, semi-finished goods or finished products also can be stole. Business equipment such as computers, furniture etc are more often at pawn. Insurance policies protect business firm form such kind of thefts.
HEALTH ILLNESS OR INJURY
Personal insurance is the basic insurance that each individual must have. Also all the business firms must have personal insurance of their employees and workers. There always lies uncertainties of having on work accidents and injuries. Having insurance of employees and workers avoid the burden from them of paying bills. At the same time an individuals health insurance help them covering up the medication bills at hospitals.
One must have insurance to help and easy themselves at the time of uncertainties and losses. Insurance helps to less the burden of financial risk for an individual as well as business organisations.
So this is our article for you to know more about insurance so if you like this article please share and comment. Thank you!