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What is Insurance – Protection from Financial Loss

What is Insurance and what you need to know about it

Insurance is one such necessity of life that no man can ignore. This is solely because of the fact that one can’t simply afford to ignore the unpredictability of life. Hence, having a life insurance is an utmost necessity for one and all. No matter who you are or what you do, insurance is one such thing that everyone needs together some intelligence so as to make sure that they do not end up signing up for an insurance plan that fails to offer the required protection.

What is Insurance – India

The best part is life insurance is one thing about which everyone requires to garner some level of knowledge so as to make sure that they are well conversant as to make sure that they invest in the right scheme in accordance to their age. Read on to find out more about what is insurance pdf and how you can identify the essence of insurance at an early stage and move on to invest in the right manner.

Video Credit – Driver’s Insurance Agency

The first step begins with choosing the right kind of policy and in order to do that, you will need to know what the types of insurance are and how an insurance company operates. Besides, it is also important to gain an effective understanding what is insurance in Hindi, and what you want to purchase and how your purchased product can help affect and shape your end goals.

The fundamental thing about buying insurance is that you need to pay a premium which in turn help keep your insurance plan live and kicking. So, one needs to keep a tab on his affordability first and then take a final stand on finding the right plan for himself. When it comes to premium, one can choose from different premium payment options like– Monthly, quarterly, annually or in a lump sum at pre-decided intervals. It is also important to gain a considerable understanding so as to make sure that you are financially in a secure position to be able to keep up your commitment of paying your premium at the decided interval period.


When it comes to buying insurance, you can’t hope that one policy will fit one and all. This is chiefly because the insurance market doesn’t work that way as needs and requirements vary from person to person and from one place to another. Targeting a diverse range of investors, different investor companies offer several kinds of offers and add-ons’ which can be well availed when you are buying your insurance policy for the very first time.

Often such add-ons are referred to as riders. Riders, in turn, can help you gain effective coverage for an illness that is regarded critical like heart attack and others. Buying insurance as it renders and calls or a fixed premium also offer benefits that accrue great benefits towards income tax. It is your responsibility read all the offer documents and papers carefully before you put in your sign to buy the insurance policy.

Feature of Insurance

Another great feature of insurance is that it also accounts for financial protection and help you save your money by effectively lowering your liability towards tax based income.

A well paid up insurance also acts as a protection plan and serves as effective collateral when you are in dire need to borrow funds from a financial institution. Every single policyholder holds the right to pledge his insurance plan which can turn out to extremely benefit worthy for one and all investors who have limited efforts. However, this kind of collateral based loans usually come with some limitations like in the shape of endowments and are applicable only for money back policies as they offer effective cover for life as well as savings. In comparison, term insurance works to provide cover for insurance and ULIP’s which however can’t be effectively pledged in the shape of a security.

One of the other important ant aspects of insurance is to come in handy in case of claim settlements and work its way all the way down to offer benefits on maturity.  However, in this case, one needs to keep in mind that before approaching to use your insurance for a claim settlement, it is required to make sure that the insurance company has a high claim ratio for one and all kinds of settlements.

This shall ensure that you have to go through a claim process that is absolutely hassling free. You might as well refer to IRDA’s website and run a check to make sure your insurer is listed under their banner. This shall help you offer a deeper insight into what is an insurance policy and penetration how a company builds the contract through underwriting process in a detailed manner. read more on the wiki link

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