Your Personal Financial Adviser

Everyone has something or other that is precious for him. Not talking about the abstract feelings here, like love, affection, etc. There are certain things that are of great financial importance – a person’s home, car, health, life, business, etc. and no one will deny that all these are subjected to risk of damage. Your home can get damaged of a fire or earthquake; your car may be stolen or got crashed and above all is your life, what if the breadwinner of a family becomes a victim of some mishap. The family will be under an emotional and financial crisis as well. In those circumstances, what supports you and your family is Insurance. Here are five good reasons that make insurance a necessity.

1. Security

Since core function of a life insurance is to protect financial interests of a family, it generates a sense of social security in people and society as whole. Basic amenities like food, shelter, and clothing, being physically and mentally fit and enjoying a standard of life are must for a happy and contented life. Any uncertain event resulting in damage to your precious possessions and in extreme case, death of a person can be devastating for whole family. Insurance is a necessity of your life planning as it provides you security in these situations. It ensures you financial security in case of unemployment, disability, sickness etc.

You can see life insurance as a necessity because absence of earning hand of a family pushes the family towards lower strata of society. But life insurance saves it from such suffering and offers some abatement from financial crisis. Read more

Everything on this earth, all our possessions is subjected to loss and damage. If you want to be compensated for their damage and even, God forbid, loss of life of a person; insurance is the way. It is a kind of contract in which the insured, i.e. the person seeking insurance commits to pay periodic amount for a certain amount of time in exchange for compensation for any kind of loss or damage according to terms and conditions of the contract.

Market is flooding with the insurance policies. In such a scenario, you need to have good knowledge of all the policies so as to make a wise decision of choosing a combination of insurances that provides you the best security.

Typically, all insurances but Life Insurance are covered under general insurance. It covers insurance of property against damages caused by fire, flood or robbery; medical insurance against ailments or accidents and liability insurance that cover legal liabilities. In short, indemnifying anything except life of a being comes under general insurance. Let’s have a broad look at types of insurances you can avail in market.

LIFE INSURANCE: Let’s talk of Life Insurance first. This is a policy whose benefits are claimed by the nominees after the death of the insured. During his lifetime, insured pays monthly premium amount for a certain amount for which his family is provided financial coverage in case of any mishap. Read more

 Life is uncertain; one can’t be sure what one has to face in any moment of life. This uncertainty stems the need to have an insurance policy that assures to indemnify the financial losses in case of an eventuality. While signing up for a policy, people consider all policy conditions and sign up for best deal but commit some other mistakes that results in delay in indemnification of loss and even non-payment of claims in some cases. In such cases a family tragedy turns out to be a financial crisis ruining many lives. To avail the benefits of the insurance policy and get your claims in time you should avoid these mistakes.

• When you purchase a policy, you should consider what thing you want to be protected in case of an eventuality. You should decide the cover amount on this basis. Especially in case of life insurance, one should look up to an insurance policy for covering the expense of one’s dependents. People believe that a life insurance policy should be enough for paying their bills and funeral charges.

• They use the age old thumb rules for calculating insurance amount, which states that it should be seven times present income of person. But it varies from person to person depending upon their needs and dependents to up bring. One should consider all the factors before finalizing upon the insurance amount.

• In an event of home or business damage, people get busy in clearing up the mess rather than visiting their insurer. Calling up the insurer in first place lets him know how bad things have turned up. Failing in explaining the actual loss to insurer affects the amount the indemnification you will get for the damage. So, it’s necessary to call up the insurer as a priority to give him idea of damage. Read more

World is showing a growing trend of buying life insurance policies; be it life insurance, long term care, or other general insurances. You buy an insurance policy for your risk coverage in case of some mishap. So, don’t buy an insurance policy thinking your favorite celebrity plumps for it. consider all the factors like coverage offered, policy rate, etc. check out all aspects and clear of all the queries on your mind before signing up for it as there is no option to regress. Here are some things that you should consider while buying an insurance policy.

• You should consider your planning goals and financial assets while purchasing insurance. In case of life insurance, nominee in indemnified the monetary loss in case of a contingency. It may also act as a product of savings. So, you should consider a ‘term plan’ that ascertains higher sum at low premium charges.

• You ought to consider your appetency for risk; and make sure the insurance plan you are opting for is in line with it.

• You should be fully aware of the types of insurance provided by the plan you are opting for and coverage i.e. total amount you get under it. Read more

In law and economic terms, insurance is a method of risk management for some uncertain loss involving fair transfer of risk of loss from one entity to other in exchange for periodic payment. It involves three main parts: Insurer, Insured and Insurance factor. Insured is one who seeks compensation if there is some uncertain loss; insurer is one who promises to indemnify the insured in an event of loss and insurance rate is the criteria which decides for certain amount of insurance coverage, what amount should be charged; this amount is called premium. There are various types of insurances ranging from a person to car, land, house etc. All insurances other than life insurance are covered under general insurances.

Change is the essence of life and what brings changes at a revolutionary rate these days is technology. Technology influences the way insurance firms operate and communicate with their clients and with each other. Read more