We all have doubt related to anything but the one most concerned is about risk of life and health. So actually what is the role of an insurance in our life and how is it helpful for us. Insurance is way to grow your money in the form of premium that is collected by the insurance company and company will pay out the claim when is it necessary or when the cover period time is over.
It has been proved that having an insurance will save you from heavy loss, as noone knows that what will happen next in our life maybe something good or bad just we have to always ready for that. If you met with an accident or hospitalized by any reason then having an insurance will save you and your money that are you investing from years in the insurance company.
I wrote many articles on Insurance and it’s benefits but some of you tell me that you all want to read more on this topic, so that’s why i’m here with another but typically same topic. Guys! lots of people know that how important is to having a insurance for yourself or for your family but i don’t know why they don’t want to use this opportunity to save their own or family’s life and health. Hope after reading this some of you could change their minds.
As i say, we don’t know when and from where something unexpected happened which can take our life at risk but having a protection against it always a good idea and here insurance plays an important role to protect you and your family when there’s an emergency situations. Insurance is not all about saving money, it is way more than that like many insurance company provide insurance against any thing and pay for you if you hospitalized or having any tretment expenses.
How can Insurance helpful:
- Protection against home damage, There are many insurance policy which covers damage happened at your own home like protection against theft, protection against fire damage, protection against water damage etc. If your policy covers this then you are able to repair or replace any damage and also suppose if you have some guest in our home and some any guest gets injured at your home then insurance company will take care of all expenses related to that issue.
- It helps you ti run any of your small business, If you are a owner of a small business then whith the help of your insurance you can manages the future risk. Insurace related to business will covers you, your business, employee and gives you a chance to provide your company a retirement plan that will help you and your employees.
- Retirement should be secured, there are lot of Insurance plans to apply for- one of them is for your retirement. The premium under this policy collected by insurance company is like a kid investing their money for a toy that helps him to feel the joy of life. When the policy period is over then the collected money would be give to you as like a pension.
- The feel of relax, i remember once i buy a motorbike from my own first salary and i have always worried about the damages that maybe happened by me or others. Then i buy a insurance online for my bike and after 8 months i met with an accident on highway, i’m totally fine and actaully was not injured much but my was almost finish. Then i try to claim my damage from the insurance company and as buy the insurance which covers all the expenses then after some documentation and investigation, insurance company paid the all expenses for my bike damage. That’s why i say again and again – insurance is mandatory nowadays.
- Develops saving habits, now insurance will work as pgy bank for me like i deposit premium for sveral years and then company get back my money afte the period of my policy is ended. Many of us don’t have saving habits which is not good, having a saving habit can save you from any emergency.
If there’s an emergency, would insurance company provide a large settlement?
Insurance company collects premium and some fixed amount to hold your policy, it has been totally depend on the type of insurance policy you have. Some insurance policy know as lumpsum because in this type of policy plan a policyholder pays a fixed amount for a certain period of time and after when the insurance period over they policyholder gets all benefits as promised by the company. You can get claim before the cover period time, many people broke their insurance plan in between the time period due to any special reason but remember this action will put you in the situation where you have to take the risk f loss of profit.
Life insurance | How many types?
Now as i mentioned above and also in many of my articles that what is insurance but some of you again asking about there types, here it is…
- Term Life Insurance Plans – On low premiums get very big profit
- Unit linked insurance plan (ULIP) – a chance to invest
- Endowment Plan – Save your money for future with the help of life insurance plan
- Money-Back – Periodic get return with the insurance plan cover amount
- The complete life insurance until death
- Child’s Plan – Now don’t worry about your children’s future
- Retirement Plan – Get income after retirement.
Term Life Insurance-
Now this time is all about pandemic, fear of death and thinking about what happens with my family is the dangerous question for every one. We all know that life and death is truth of nature. We all take tension aout our family member or love once and do whatever it take to make them live in better world. The term life insurance will help you to solve this problem, you have to pay for a specefic period of time which totally depends on your policy plan but the time period very between about 10 to 30 years. If somehow you die in between your plan specefied time period then a cash benefit is provided by the insurance company to the person who’s identity is verified as nominee in policy documents.
The most important step that you have to choose when you are applying for term life insurance. Many of you asked me that what is the right cover period under term insurance plan, so the answer of this question is simple – you just have to ask yourself that why are you applying for his term insurance plan and i know the answer “Family & Love once“. Yes we apply for this term insurance plan, so that when we are not present in the hard situation with our family then in this type of situation thsi insurance plan will help your family.
The premiums totally depends on the plan and the term period, is you applied for a long term insurance plan or Short term insurance plan? Premiums maybe for long term and short term will be almost same because we don’t have superpowers to predict the future and don’t have powers to stop future accidental situations and that’s why insurance company want premium same as for long and short term both. I have a recommendation – when you are young and have employement then you should apply for a term isnurance plan.
Unit Linked Insurance Plan (ULIP)-
In the early 1971 the Unit Linked Insurance Plan were announced in india, it is totally managed under the Insurance Regulatory and Development Authority of India (IRDAI). Policyholders interested in stcok marketing or in mutual funds have to invest in stock marketing or in mutual funding by their own. Now you have an option under Unit linked insurance plan taht you can invest in stock marketing in addition you can get all the benefits of an life insurance plan cover. From the past 10 years it has been seen that there is a increase in investment to ULIP funds. According to some survey’s it has been noticed that the investment has been doubled since 2009.
In Unit Linked Insurance Plan, you have options so that you can acheive your financial goals because it provides a wide varity of options so that which perfectly suits you, you can customize or use it.
Life insurance plan is a smart way to avoid future loss. As we all know the aim behind the life insurance policy is that it secure your future without affecting your present. But there is an problem with the life insurance plans, you will not get sum assured for yourself. Mean that if there’s an situation where you need money like having an emergency, in this type of situation anyone needs money ut they can’t get any sum assured from their life insurance plan.
And that’s why we here introducing Endowment Plan, benefits of it are as follows :
- It is the best plan to make a source of income at your ol age, yeah i know every one want to collect money or invest it to make their old age time good and this plan helps in this. There are many options in endowmwnt plan like you will get lump sum amount like in retirement. It can be a way to handle your medical and other expenses.
- When you are not available for your children but in your Endowment plan you have added them as beneficiaries then the benefits of that plan or policy will shifted to them.
- Tax saving benefits, yes if you withdraw the amount after the maturity then if your company provides full benefits then you don’t have to pay any amount in tax.
Money Back Plans-
There are some money back plans you can check. Actually suppose if there’s an unpredictable situation then insurance company will provide you amount as the sum assured but only to the nominee of that plan. And the one who got the assured amount can use it as they want and they can make their lives easy and happy with this.
There are many products in market to get money back plan in your life to generate daily income and also with the help of the insurance cover it can be easy. Stock marketing, mutual funds, bonds etc are the way to generate daily income and get returns regular with the helps of insurance plan.
Some Health Insurance Policies in India that you must choose:
- Max Bupa Health Insurance
- HDFC Ergo Health Insurance
- Bharti Axa Health Insurance
- SBI Health Insurance
- L&T Health Insurance
- Bajaj Allianz Health Insurance
- Apollo Munich Health Insurance
- National Health Insurance
Which one is Right Insurance Policy? | How to choose
There are many of the insurnace policy and insurance company in the market but they have a little bit similarity in them which actually confuses the customer. There are some tested points that should be noted before going to choose any one of the plan from any insurance company. Below they are mentioned:
- Always check and compare Sum Assured
- Check the age restrictions and renewability
- Check Room Rent Capping is avialable or not
- Always determine Inclusion in the plan as well as Exclusion
- Ensure to check No Claim Bonus under your policy
- check if there are Other Benefits in your plan
I know many of you don’t have any insurance plan and don’t want to get one just because of some premium charges but let me tell you that once i met with an accident and get hospitalized which actually costly for me about 50K INR but thanks for my parents because they buy a insurance plan for me when i was 18 and here it helps me to handle all the hospital expenses. Alwasy remember and note the importance- is your money important but not your family? Ask this to yourself. Just you have to invest your money in the insurance plan and you’ll get benefits from it whenever it needs.
If you don’t know what are the insurance policy, good insurance policy, how to apply for it then just go and search on net. You can get online insurance for everything like bike insurance, car insurance, home insurance etc.
The End | Thankyou for always showing such great love and response towards my articles, i love the way that you all provide me suggestions and i promise that i will take care of every single suggestion.