Insurance Solutions

 "The only thing that money gives you is the freedom
of not having to worry about money"

What is Life Insurance?

Let’s start with simple question, if you are planning air travel then which option will you choose


Cheap air ticket without parachute?

or

Costly air ticket with parachute?

Obviously the second one despite we know that we hardly need parachute during air travel, but we are also aware in case of any emergency, parachute can be a life saviour. So we don’t mind paying extra. This can be directly compared with insurance premium we know that we hardly need it but what if?? we need it. Sometime insurance premiums are considered as cost but in actual they are hedge against any unforeseen event.


Broadly, insurance is divided into two branch:

» Life Insurance
» General Insurance


Life Insurance: It covers risk associated with humans whether it is dying too early or living too long. Dying too early risk can be covered by taking Term Plan, in case of any emergency sum assured is paid to the nominee. We should take sum assured equal to our human life value. Broadly, Human Life Value is Calculated by multiplying annual income with years left in working life. In our country people are grossly under insured which means the insurance cover they have taken is inadequate. Sometimes, Inadequate sum assured may lead to compromised living standards of their dependents (if breadwinner dies)


General Insurance: it covers everything other than humans though it covers humans also under health insurance, personal accident insurance etc. Further General Insurance is divided into three branches:
» Fire
» Marine
» Miscellaneous


Fire Insurance: Fire insurance covers damage or loss to a property because of fire. It is a specific form of insurance in addition to homeowner’s or property insurance, and it covers the cost of replacement and repair or reconstruction above what the property insurance policy covers. Fire insurance policies cover damage to the property, and may also cover damage to nearby structures, personal property and costs because of not having the capacity to live in or use the property if damages occur.


Marine Insurance: It covers the loss or damage of ships, cargo, terminals, and any transport or cargo by which property is transferred, acquired, or held between the points of origin and final destination.


Miscellaneous Insurance: It refers to contracts of insurance other than those of Life, Fire and Marine insurance. It covers a variety of risks, the chief of which are: - Personal Accident insurance, Group Health Insurance etc.


Adequate insurance cover gives peace of mind and in turn increases efficiency of individuals and corporates.

 

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