Types and Benefits of Insurance- Have A Look

Insurance is a type of risk management that helps to protect you and your family from financial loss happens due to uncertain reasons or mishaps. For this Insurance, you have to pay a small amount to the insurer and if any loss will happen to your belonging then they will cover the damage or expenses to that loss. Also, it is very compulsory to take the advice of any financial experts who will help you to get the best insurance plan.

Advantages to having insurance: There are a lot of things that you can take benefited by taking insurance.

  • It provides safety and security to your belongings from theft and damage.
  • It helps you to recover the financial loss in an emergency situation.
  • It provides monetary help to your family after you.
  • It helps you to encourage savings.
  • It helps to increase the economic growth of the country and decrease the inflation rate
  • It also helps you to avail tax benefits as per section 80C in life insurance and Section 80 D in health insurance.
  • It also provides helps in the case of a medical emergency.

Disadvantages of insurance: Alike everything, insurance also has some disadvantages that we have to face at some point.

  • Complex policies of the insurance companies.
  • Risk of fraud or get cheated
  • It takes a long time to claim benefits due to lengthy legal formalities.
  • Provide mental stress if in case you will not able to pay the premium on time.
  • It also led to an increase in the crimes in the family, as the beneficiary will get the insured amount.
  • Profit margins take by brokers are too high.

Types of Insurance: There are a variety of insurance facilities available in the market offered by many renowned companies. But you have to choose it yourself, which plan is best suited for you. Whether you can pay the required premium amount for it or not. Below are some major types of insurance facilities that are commonly taken by us: 

Life Insurance: It is the most basic as well as an important type of insurance that we all must have heard about and also covered ourselves with is Life insurance. As we all know that life is the most precious thing to us, more than anything else in the world. After life, the second important thing is your family. If you are there you can take care of your family, but in case if something will happen to you unexpectedly then life insurance is the one that will provide financial security to your family and dependent people after you. Life insurance is basically of 2 types i.e. Whole life insurance and term insurance.

In whole life insurance, you have to pay your premiums till death but in term life insurance you have to pay a regular amount of money for a fixed period of time.

Health Insurance: You never know when and how come a disease can affect you, in such cases, Health insurance is proven to be a relief for you. If you have to get admitted to a hospital due to some critical disease, then you can easily take the Mediclaim from the company if you have already taken health insurance. Even if have to just visit a doctor due to some regular infection such as cold or cough, then also it provides monetary benefit for your hospital expenses and stays.

Vehicle Insurance: When your vehicle got damaged due to the accident, then the vehicle insurance will help you to claim the expenses of damage from the company. It will further depend on the type of insurance whether you will get the complete cost of the loss or some percent from the total damage expense.

Property Insurance: Property insurance helps you to recover the loss that happened to your property or basically to your earning source. As the farmer can insure their crops and animal engaged in business. You can ensure your house and shops to compensate for the losses due to fire, protect any goods from theft, marine perils loss and many more examples are there in daily life. 

Fire Insurance: Accidents can happen anytime, so the fire insurance will provide reimbursement of the losses caused due to fire to your house, shops or animal sheds. The reason for fire may be short circuits, gas explosions or any natural disasters. 

Auto Insurance: This insurance is basically forthe drivers who drive vehicles on rent. If the other driver, you or any passenger get injured in an accident, then this auto insurance will pay the expenses and protect you from litigation of accident. It also protects your vehicle against theft or any natural disaster. 

The regulatory body for an insurance company: IRDAI established in 1999 is the major power that monitors and regulates the insurance companies in India. It consists of 10 members that are assigned by the government of India. Its headquarters is based in Hyderabad, Telangana. Its regional offices are based in Delhi and Mumbai.

A Few Major Things To Look For in a Life Insurance Policy

To help your family in bad times when you can no longer help your family, it’s compulsory for everyone to take a Life Insurance Policy. If something will happen to you unexpectedly then It provides financial security to your kids, wife, and parents if they are directly or indirectly dependent on you.

These policies are very affordable to buy as you have to pay a small amount of money at a regular time interval and it will pay back to your family after the completion of the time period of the policy.

You can take these policies as per your personal situations and according to your needs. Such as if you are a middle-aged person and save enough money then you can take a long-term plan or if you are too old and most of the time remain unhealthy then you should take a short-term plan.

Points to remember while taking Life Insurance Policy:

How can you check whether the policy is good for you or not, whether it can fulfill your family needs after you or not, whether you can pay the premium amount along with your daily expenses or not? How can you rely on the company, that it will not cheat you? 

There are lists of questions that arise in your mind when you are going to purchase any policy. But these are the main points to keep in mind while choosing the best insurance plan available in the market.

Affordability: It might be possible that you have already so much debt to pay or have a large family and unable to save money after paying for all their expenses. So, you have to choose a plan that you can afford to pay easily along with fulfilling your daily needs. There are lots of companies offering a variety of plans that you can surely afford. 

Compare benefits with the other plans available in the market: There are lots of companies in the market who are saying that this plan is the best plan for you. All they want is to make you their customer. Of Course, they are offering such pleasing plans that can easily attract you or you have to pay less for that. But make sure to take your time and compare all the plans available in the market. Apart from this, you can also take suggestions from your friend who has already taken any insurance plan and they will help you to choose the best among them.

Check for claim settlement ratios: Checking for the reviews online will surely help you in this point to know the credibility. Check whether whoever is taking that particular plan is able to claim their settlement without hassle or have to face many issues, have to roam around various offices to claim the settlement. How does the TPA work for the company? How much are they paying at the time of settlement? If your answer to all these types of questions is in a positive way then you can go for that plan.

Rate of return: Make sure that thereturn you are getting at the maturity is not differ than the promised one. Also, return should be excluded of all taxes and charges. You can easily find the claim and return rate related information online on IRDAI website.

Plan for the basic amount required for life cover: If you want your children to study in the best school in the next 10 years and the current expense of that school is 10 lakhs. So, you required a minimum of 25 lakhs in 10 years to make sure that dreams of your children can be fulfilled at any cost. Hence you need to choose the insurance plan accordingly that gives a minimum maturity of 25 lakhs after 10 years.

Be informed about offered services: Check whether the branches are available nearby to your location and they provide service on digital platforms or not. Can you pay the premium online or have to go to the main branch every time. Once you have purchased the policy, these points will help you in future for convenient transactions.

Avail automatic payment: Life insurance is a recurring expense, especially when it comes to term life insurance. You should make sure to choose for the company that will allow you to do the automatic payment monthly with either credit card or bank draft. So, that you don’t forget to pay the bill on time or within grace period. If you forget to pay the bill on time then the policy gets canceled and no issuer will allow you to reinstate the policy either.

If you remember these few points, then it will be a great insurance plan for your family needs and will also allow you to manage your monthly expenses. You can find multiple quotes online or can consult a broker that is well experienced in selling multiple policies. Also, you can compare the cost and details of these policies online with other websites to choose the best among them.

How to select insurance plans for perfect financial planning?

Various incidents in life can happen unexpectedly. Right from sudden hospitalization to car accidents, all these incidents demand money to be perfect. Sometimes, it becomes difficult to arrange such large money within a short period. No one knows what is in the future therefore ensuring financial security must be your priority. For this, people can go in for buying insurance and keep themselves and their properties financially insured. You can connect with the insurance companies to know about the best insurance policy and plan available to them.

According to your requirement, you can choose the types of insurance plans. Let’s have a look at these plans in a detailed manner:

Insurance is broadly categorized as Life Insurance and General Insurance.This is now further classified as:

Life Insurance

  • Term life insurance: This insurance is mainly designed to provide benefits to the beneficiary if the insured person dies during the specified time. If the policy holder survives then there will be no money back. It is considered as affordable life insurance which is again divided as increasing and decreasing term life insurance.
  • Money-back insurance: This kind of plan will provide you money after the policy tenure. Some percentage of the amount will be provided to the policy holder at regular intervals and the rest amount will be given when the policy gets matured. The remaining amount will be given to you if the insured person survives. Money back life insurance policy is an expensive one as the amount is offered to the person during the policy tenure. In case of any unfortunate incidents with the policy holder, the amount will be given to the beneficiary.
  • Endowment insurance: In this plan, the amount will be given to the policy holder if he/she is still alive during the maturity of the policy. In case of the death of the insured person, the family of the policy holder will get the amount. This kind of insurance not only provides savings but also protection to the family after insured demise. LIC policy provides an endowment plan that offers maturity and death benefits.
  • Whole life insurance: This insurance will provide coverage through life. The cash value of the insurance gets increases with time. The best thing is that you can take any loan against the cash value or withdraw the cash value. The death benefits will get reduced if the policy holder couldn’t pay the loan because of unfortunate events.

Are you looking for two-wheeler insurance or life insurance? Don’t know which company to choose? In the insurance market, you might get confused because of several insurance companies. Some company claims the best coverage whereas some others say that they have affordable premiums. Choosing a reliable insurance company can be sometimes daunting for you. For your convenience, here is a list of some important tips that you need to focus on:

Company’s previous history

Whenever looking for an insurance company, you must research the company by going through its website. With this, you will get to know how long they are into the insurance business. What are its objectives? What types of insurance products they are selling to the customers? If you are satisfied with the answers to these questions then you can go for buying insurance from them.

Know the financial strength

 No want wants a situation where the policy holder cannot get the claim amount because of any financial issues in the insurance company. Therefore, you must check what financial strength of your selected insurance company is. This will give you peace of mind while buying insurance from the company.

Look out for the coverage

Well, different insurance companies will provide you different coverage of the same type of insurance. Firstly, be clear about your insurance requirements. Secondly, finalize the company that is providing your appropriate coverage on your life as well as general insurance. Even if you are finding bike insurance online, you need to have a look at the coverage pointer.

Price of the insurance products

There is an old saying that you will get what you have paid. If the premiums are low then you might get low coverage and vice versa. Pricing of insurance of different companies may be different because of many reasons. If you are confused about the pricing, talking to an insurance agent can be helpful for you. 

Whether you want to buy two wheeler insurance online or home insurance through agents, you must read all these pointers carefully. With these pointers or tips, you will surely be able to find a trusted and reckoned insurance company. 

Best insurance companies- Concept of benefits, types, and policies

There is no denying that unexpected urgencies related to finance can strike you anytime. They won’t give any time to get prepared for financial emergencies. There are several properties related to you and your life that can be at risk of damage and any sort of destruction. One way that can help you in handling these sudden situations is by availing insurance. Right from vehicle to home and life to business, several things need to be insured so that you don’t face any financial problems in the future. In the insurance sectors, there is the availability of several Best Insurance Companies that provides multiple insurance plans and benefits. 

There are times when people think about how insurance is going to cover them? What will its benefits? To get a clear answer to this question, keep reading these below-mentioned pointers:

  • With insurance, financial assistance will be given to you as well as your family in case of life insurance. With the best life insurance, you will get complete peace of mind and monetary aid. Thus, it is necessary to insure yourself or other important things in your life to be financially secure. 
  • Some of the benefits that one can get with buying insurance are income tax benefits and maturity benefits. 

Know about some of the best companies that provide insurance

Life Insurance Corporation Of India (LIC)

This is the first-ever company of insurance in the country that offers different insurance policies to the people. The claim settlement ratio of this company is around 98.31%. Because of this, it has created a niche in the insurance sector. Some of the popular policy plans of LIC are LIC Jeevan Akshaya, LIC New Children’s plan and LIC Jeevan Saral. You can also get the best term insurance plan with this company.

Apollo Munich Insurance

When it comes to buying the best mediclaim policy, you can prefer Apollo Munich. It is considered as the leading company that has a record of claim settling within 30 days of duration. Apart from this, you can also get policies for motor, life, and travel.

Max Life insurance

This insurance company has been serving us since 2001 with its incredible insurance policies. With a claim settlement ratio of 97.81%, it has gained huge popularity. If you are finding the best term life insurance company then you should go for it. Some of its policies are Growth plans, Strategy plans, and child plans.

Types of insurance 

Car insurance

For car owners, insurance is a must because of its incredible benefits. If you have insured your car then you can be relaxed. With the best car insurance policy, you can get your care covered against any kind of accident damage. Not just this, some policies also provide cover against cyclones, floods, and theft. The best thing is thatyou will get third-party liability which means damages can be covered if made by other vehicle owners. No matter what type of vehicle you have, it can be insured with ease. If you are having a two-wheeler, search for the best two wheeler insurance.

Health insurance

Health is something that you can’t ignore. There are various diseases whose treatment can empty your savings and pockets. To deal with such a stressful situation, everyone is needed to buy the best health insurance policy. Through this, you will get covered with medical costs for the treatments and hospital expenses. You can choose different types of policies that can provide wide coverage against multiple health issues. For both specific and generic diseases, you can have health insurance to cover yourself.

Life insurance 

This insurance covers your life in multiple aspects. The biggest reason for the existence of this kind of insurance is that family members can be financially secured after the insured person’s death. You must get yourself insured with the best life insurance policy if you are the only earning member of the house. The life insured person will get cover against untimely demise. After the death of the policy holder, the beneficiary will get the pre-approved sum from the insurance company. 

Home Insurance

This is another type of policy that will cover home and its contents against theft or any sort of damage. If any unforeseen thing happened then damage will get covered under this home insurance policy.

Travel Insurance

Travel insurance is mainly for those who want to get their belongings safe during travel.  With this insurance, the policy holder will get financial support if there will be a loss of passport or luggage. Many insurance companies are offering this insurance at affordable premiums. 

Why A Common Man Needs An Insurance?

We are living in the buzz world of the 21st century where everything is moving at a fast pace. Growth opportunities are only for those who are able to make themselves self competent for a particular profession. Then the question may arise in your mind, why do I need insurance? In simple and straightforward words Insurance is a way to control risks. So, what happens when you buy insurance- You transfer cost of potential loss to the insurance company in exchange for a free acknowledged as the premium. Best insurance companies securely invest funds so that they can grow with time, and pay when it is claimed.

With Insurance you

  • Own A home
  • Maintain your Living Standards
  • Avail Vehicles
  • Strengthen your Health Care possibilities
  • Recover death losses
  • Run a Family Business
  • Choose for Vacations

If you aspire for a better insurance policy, we suggest you take some take, make a proper analysis and connect with one of the trusted financial advisors to get the advice. When it comes to choosing Best insurance Policy, a bit of knowledge of matter creates big differences.

Wrapping up the major coverage areas of insurance policy, we are just to cover a few reasons to know why insurance is important.

The financial chain keeps moving with Insurance

Insurance has been helpful in preventing many businesses from avoiding thefts, and man-made losses. Insurance of business sites or factory premises keeps you assured of potential damage recovery, and provides you a significant recovery from losses. Thus businesses with unfortunate losses still find future hope to grow at the same pace after the occurrence of damages.

Lenders Need Insurance

The lenders who give you a mortgage, or business loans need that you have insurance. Lenders of mortgage property need insurance proof before you are building or purchasing a new building. If you want to get money from lenders you need to show that your business is in the continuously growing phase. If you want your successive business to get funds, it is not possible without insurance.

Some states had made Insurance Mandatory

Most of the time insurance becomes important, as it is governed by the law! Automobile insurance is one of the best examples of this scenario. Insurance of your vehicle assists owners to recover the risk of life and physical damages on roads.

Insurance Gives Stability to Family and Business

Insurance works as a safety cover for individuals and businesses when risks taken by them do not give expected results. It not only supports the family when it loses a member but also gives a new boost to the business in case of potential losses or damages caused due to thefts & physical harms.

Hope, going through the description, you understood the significance of the insurance. If you are looking for the best Insurance policy, from the best company then keep visiting here to get important updates.

Gold building a bullish market as Covid-19 refuses to take a beating

Get ready for a record-breaking rally in gold prices as a massive bull market is building for the world’s oldest safe haven. The price of the yellow metal is fast approaching its all-time high after recapturing all losses it made during the broad market meltdown in the month.

In the month of March, the gold rally did pause, with gold prices experiencing major volatility alongside plummeting stock markets, as Covid-19 spread rapidly across continents.

On April 14, gold prices rose to a more than seven-year high as spot gold gained 0.6 per cent to $1,724.72 an ounce, due to concerns over the global GDP anticipated to shrink by 3 per cent this year due to the virus outbreak, in the worst downturn since the Great Depression of the 1930s, and as a wave of fiscal and monetary measures steered investors towards precious metals and away from assets denominated in paper currencies. 

Recent economic data from the US highlighted fears that damage to the global economy from the Covid-19 pandemic will be deep and long-drawn. US retail sales dipped 8.7 per cent in March, their worst monthly decline on record in the data available from the Census Bureau, which dates back to 1992. Similarly, consumer spending and manufacturing activities also slumped to decade-low levels.

As governments scramble to support the economic blow caused by the extended shutdowns, central banks across the world have initiated several stimulus packages.  The central banks’ economic easing measures have historically led to a rush among investors into the safety of gold.

And this is no different as investors are already seeing unprecedented premiums for bullion gold and silver coins.

Back home, on April 17, gold futures rose nearly 1 per cent as India extended a 21-day lockdown to curb the spread of the COVID-19 pandemic. MCX gold futures added as much as 0.83 per cent – or Rs 389 per 10 grams – to touch Rs 47,099 per 10 grams during the session.

The dollar normally has an inverse relationship with gold . US dollar has lost considerably from its recent highs in March. As gold prices are traditionally priced in dollars, a decline in the dollar will see gold rising higher.

An AllStarCharts report reveals that as long as the dollar price of the metal remains above the range of $1560-1600 then it should continue to climb higher. 

Meanwhile, despite Indian economy being under shutdown, gold futures gained more than 22 per cent from its recent low and hit fresh record highs. Though the nationwide lockdown has impacted the physical market activities, a sharp rise in Covid-19 cases and a feeble rupee supported the sentiments.

As fears of global recession remain, gold will continue with its broad bullish outlook.  

On the price front, if the situation remains unchanged spot gold prices can climb higher towards $1,780 an ounce initially followed by $2,000 or more. In the domestic market, Rs 50,000 per ten grams can be easily achievable but consistency above the same would target Rs 62,000 or upwards.

Meanwhile, according to Georgette Boele, precious-metal strategist at ABN AMRO, gold prices could be ending the year at $1,700 an ounce as central banks and governments continue to throw trillions of dollars into the global economy that has ground to a halt because of the virus outbreak.

Detailing the five factors supporting gold prices through the rest of the year, she states that aggressive central bank quantitative easing, negative yielding government bonds, interest rates remaining close to zero and rising fiscal deficits will see the gold market rise.

She however advises investors to be mindful of the fact that markets will remain volatile