Insurance is a cost and utter waste. This is what many people consider when the insurance subject is discussed. Remember, this cost is the least when you compare the benefits gained when an unfortunate event like death, accident, theft, etc. occurs. The money spent in insurance contracts is a good saving cum investment. Furthermore, it takes care of the welfare of your family.
You can make a choice of good plans to cover the basic risks like Health, Home, Vehicles, etc.. For your business or profession, go for the policies that will insure the risks associated with your products, furniture and fittings, plant and machinery, etc..
What is an insurance? The risks involved in our life are multifarious. Sudden demise of a person is an unbearable and irreparable loss to everybody. That too, an untimely death leaves shock and void in the family. To protect against such unfortunate events and risks, a mechanism called insurance is in place.
Types of Insurance: Basically, two types of insurance exist as Life and non-Life insurance. The First type is for compensating the dependents upon the death of the policy holder. It has two varieties as 1) Pure insurance or term insurance where premium rate will be lower, but no returns or refunds made if the person survives after the policy period. 2) Endowment type, where death and maturity benefits are combined, comes at a higher premium. Non-life products cover the risks like Accident, Marine, Health, Goods, Agricultural crops, Cash-in-transit, etc. Additionally, a third type exists as Reinsurance, which insures risks like Satellite, Spacecraft, etc… involving huge amounts.
Do’s & Don’ts of Insurance: 1) Read the contract notes. Even after taking all precautions before buying an insurance product, some exclusions are made to the risks covered. 2) Keep the policy in force by paying the premium regularly. Your claim will be rejected if you have not paid the premium. 3) Inform the insurance company about any changes in your address, the nature and composition of assets covered, etc.. These issues crop up in the case of business assets and movable assets like vehicles. When you acquire a second-hand asset, the risk is more: you have to make sure the title is transferred into your name. 4) Always source the insurance products from the reputed companies that have a good reputation in the market. New insurers tend to secure more business and profit, but avoid the payment of the claims under their policies.
So, Insurance is a not a liability, but an investment for the future. Insurance agent alone provides solace and relief and in fact brings good news, when others simply console when a family bereaved.
Wise People Remain Insured.
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