Insurance

Insurance

Now   a days the awareness on Insurance is increasing. Hence we should know the fact and its importance, that’s why I am writing this to you.

The Insurance is not a very new concept. Actually speaking, it is the concept of   Babylonians .In olden days people would go for hunting fish in the sea, trading etc. Coming back to home was not certain. Hence they formulated the concept of giving an amount that was collected from everybody to the person’s family who did not return. The family would suffer less in the absence of that person. Everybody in that group knew that the turn would come any time. If that happened, his family would be secured. The amount is for two reasons.

• Huge amount will be provided to family in the case of misfortune  

•  If no risk, the amount will be given to the one in that group who suffered.

In a nut shell, the risk is shared by all. People define Insurance in this way “Insurance is a concept of risk transfer through risk pooling”. Risk is an unfortunate event. It is the legal contract between customer/policy holder and the Insurance Company / Insurer – Indian Contract Act 1872.

All Insurers are regulated and controlled by IRDA (Insurance Regularity and Development Authority.  Death is certain, but time of death is uncertain. All human beings require four kinds of plans.

Term Plan: The premium amount is very small. Maturity amount will not be provided at the end. For example if you pay 5000 per year 50 lakhs will be provided on misfortune. (The amount varies depending on the age of the policy holder and Insurance company) .Real and original concept of insurance. Almost all companies are providing this term insurance , Reliance life , Aviva, HDFC life ,Max life ,Bajaj Allianz , Edelweiss Tokio etc. Compare with respect of claim settlement ratio, premium amount and maximum coverage age. If the maximum coverage age is 60 .If the risk occurs at age of 61, your family won’t get anything. I insured myself with the value of 80 lakhs upon yearly payment of Rs.10,000  , maximum coverage age 80.

Health Insurance: This is known as Medical Insurance. It provides reimbursement of medical expenses or cashless facility during the medical treatment. This is compulsory in many countries. Here the companies which concentrate only on health insurance would be better. Example star health, Apollo Munich , Cigna TTK etc. It may cover individual, family or group of employers. Here family means husband, wife, children, husband’s father & mother and Wife’s father & mother. That’s it. Here family does not mean your sister, cousins etc. we have plan for 10 lakhs upon premium payment of Rs.25 000 rupees. I don’t get that Rs.25000 if nobody is admitted in the hospital in this year. It gives me immense pleasure if nobody admitted in the hospital. If risk happens I can get 10 lakhs. My father died due to heart attack in the year 2011, we realized the importance hence it continues every year Rs.25 ,000.

Saving plan: People need variety everywhere. The amount paid should be returned. But they need insurance too. They can opt saving Insurance plan. Here If you pay 1 lakh every year that will be returned as 50 lakhs after 30 years with death benefit of 10 lakh.

Pension plan: The Government has stopped giving pension (India) in many sectors. The private sectors are blooming. After 50 plus if you need salary with the insurance coverage you can opt this. Here you plan your retirement. That’s it.

If you want to know more terms go through below.

FPR - First Premium Receipt (Proof until you get policy document)

RPR-  Renewal Premium Receipt

Free Look period-15 days / one month (Cancellation can be done , full premium will be refunded)

Grace Period -31 days

Lapse Period            - 3 months (Revival with fine)

Nominee- 2 or more dependent persons

In my point of view term and health insurance must be required for all. I would say, if you don’t have, you are an ‘illiterate’. If you have all the four, then you are ‘sophisticated’. Thanks to the Reliance Life Insurance who has given this knowledge to me.