Insurance a close and proper understanding helps you in long way. Insurance in economical and lawful language can be defined as equitable transfer of the risk of loss, from one entity to another in exchange of capital payment. In this insurance company promises insured that they will compensate their loss, in case the loss occurs. In this insured pay money relatively less than insured loss. It is a contract or policy in which an individual or entity receives financial protection or reimbursement against losses from an insurance company.
Insurance has affected the society in both good as well as bad way. On a positive side, it prepares people to reduce the impact of unseen and uncertain losses. On a negative side, it increases insurance fraud and carelessness among people.
Insurance policies can be confusing and you may not understand all the fees and coverage included in a policy. Due to which, you may buy policies on unfavorable terms. To solve this problem, many countries have enacted detailed statutory and regulatory regimes governing every aspect of the insurance business, including minimum standards for policies and the ways in which they are allowed to be sold.
You should buy only that insurance policy which suit your budget and fulfill all your necessary requirements. While signing the documents read them carefully and ask agents if you have any doubt in your mind. There are several kind of insurance policies, which includes
Life insurance
Home insurance
Business insurance
Auto insurance, etc.
Life insurance is a contract between insurance company and insured person, according to the contract the insurance company will pay a decided amount to the policy holder upon the death of person. The amount will depend on the amount and conditions mentioned in the contract and promised by the insurance company.
To avoid any kind of dispute afterwards and t maintain harmony and surety, proper documents are prepared following the regulating rules. People need life insurance as it provides "peace of mind"; to the policy owner by making he or her sure that his or her death will not result in financial hardship for loved ones.
In other words life insurance is a protection against the loss of income which would result if the insured passed away. To decide your premium and the value you want to leave for your dependents, you should first analyze your financial situation, living standard, and the amount that will be needed by your dependents to maintain that living standard, without disturbing your present budget.
Every insurance company has their own criteria and schemes. You must make sure, what you need to get covered under your insurance policy. For example-
funeral arrangements
outstanding balance owing on a mortgage and other debts
Offset the loss of your income for a particular time period
future education of your children
A combination of all or part of the above
Common mistakes which people do are
Forget to update their policy on their marriage or after the birth of a child,
Forget the long term plan, etc
Many companies provide life insurance, the topmost name of such insurance companies include names like United India Insurance and Tata AIG insurance. United India Insurance has its head office in Chennai. Complaints against United India Insurance are regarding poor customer service and Tata AIG fraud complaints are about non receivable of bonds.