Why buy insurance
Life is full of uncertainties. We face many risks in our daily lives, including our lives, health, property and other risks.
We do not know when some unpleasant untoward incident will happen with us, but it is definitely possible for us to take measures to reduce the financial impact of these risks and make ourselves financially safe.
Such financial security comes from savings and investment, but only they get our money back and some returns.
Insurance is a financial tool that has been specially created to reduce the financial impact of future events and to generate financial security.
Insurance works on the rules of large numbers in which some people are contributed in the form of premium to compensate for the losses incurred by some people. By paying a premium for protection from any particular type of loss, you are protected to a certain amount that is given to you when facing that loss.
For example, if you Rs. You pay a premium for hospital expenses up to Rs 1 lakh, and whenever you have to pay hospital expenses, then the insurance policy will give you Rs. Will pay the amount up to Rs. 1 lakh.
Which insurance buy
So, which insurance should you buy? Insurance is available for unprofessional events such as death, accidents, illness, property loss or damage. You should protect yourself against these incidents and you should buy property insurance, accident insurance, health insurance, and property you have for which you want protection, such as automobiles, houses etc. for them.
Commercial ventures face many complex risks such as legal liabilities, and other diverse risks. Various special policies are also available for them. Where life insurance, and some types of accidents and health insurance are presented by life insurance companies, property insurance, health and accident insurance (again) non-life insurance companies (also known as general insurance companies) Are presented by Click here to see the list of insurance companies registered with IRDA.
Whatever insurance policy you buy should be in line with your needs. This means that you must first recognize what your needs are. According to the life stage you are in, and your future aspirations, you should choose a life insurance policy for yourself. It can vary on many grounds as if you are starting a family, or your children are growing up, whose education needs are increasing, or you want to plan for your retirement.
You should also participate in a health insurance plan at the young age, and make sure that you are continuously covered. Where third party insurance is essential for your motor vehicle, it would be wise to buy an entire policy that covers your vehicle for its damage. By securing insurance against your home, and home items against fire and flood etc., you will be able to secure your hard earned savings.
How to buy insurance and whom to buy it
You can buy your insurance policy from an individual agent, a corporate agent, or an intermediary (broker). Click here to read more details.
You can also buy your policy directly from the insurance company and some of these can be purchased on the Internet. An agent or corporate agent or broker can also sell insurance using tele-marketers.
Please select any medium (channel) to buy insurance, please ensure that you are dealing with an authorized channel and ask questions, get information and remove your doubts.
An agent or broker must have an IRDA license. Check it first. You should inquire for other relevant information and get the full details of the policy details, benefits, what is covered in the policy and whether or not, at the time of claim, documentation and explanations about procedures etc.