| What is insurance? |
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Insurance is the only way to protect the economic value of assets and life. It is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the insurance. A policyholder is the person or entity buying the insurance policy. The insurance rate is a factor used to determine the amount to be charged for a certain amount of insurance coverage, called the premium.
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| What is an asset? |
| Tangible |  | Intangible |
| Home | | Earning Power |
| Car | | Training |
| Jewellery | | Experience |
| Computer | | Skills |
| Business | | |
| Collections | | |
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| Why should you have insurance? |
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Assets can be destroyed by fire, flood, earth quake, etc. Insurance protects the assets.
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Insurance covers the risk. A risk is the possibility of loss or damage, that may or may not happen. General insurance covers such contingencies that may happen.
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If there were no uncertainties, there would be no need for insurance.
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Life of a person is an income generating asset. In case of untimely death of he person, the family is protected by life insurance cover. For the post-retirement period, life insurance helps to ensures a lump sum payment or a regular income.
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| How will insurance help? |
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Insurance takes care of the unexpected
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Family is protected from the loss of earnings in case of a crisis/calamity. Insurance takes the financial burden off.
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The best way to save regularly- at the best rates.
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Tax free payout on maturity acts as a ‘nest-egg’ for retirement.
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Loans possible on certain life insurance policies.
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Tax saving benefits under section 88 of I.T. Act.
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After only a single premium, you are covered for the full benefit.
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As a “locked-in savings”, Life Insurance gives you the highest returns.
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Life Insurance policy can act as collateral when taking a loan.
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For only a small sum each year, the Insurance company takes the risk.
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| What kinds of risks are covered under general insurance? |
| Fire | | Buildings, machinery,furniture,fittings, stocks, etc. Loss of net profit also covered. |
| Marine | | Large cargo/passenger vessels. Cargo handling also covered. |
| Burglary | | Stocks,cash,jewellery. |
| Fidelity | | Breach of trust by employees. |
| Personal Accident | | Accident to human lives. |
| Medical | | Medical expenses incurred during illness/hospitalization. |
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| General insurance ~ additional products |
- Shopkeeper Insurance
- Flood Insurance
- Travel Insurance
- Baggage Insurance
- Engineering Insurance
- Household Goods Insurance
- Earthquake Insurance
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| Insurance for rural markets |
- Crop Insurance
- Cattle Insurance
- Pump Insurance
- Lift Irrigation Insurance
- Horticulture/Plantation Insurance
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| Life insurance covers |
| Family | | Financial protection on death of an earning member. |
| Children | | Savings for education/marriage/start-in life. |
| Old Age | | Retirement income. |
| Special Needs | | Medical treatment/Loss of income due to disability(accidents/illness). |
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| Life insurance |
| Life Policy | | Has two components |
| | 1. Risk Cover- Benefit payable in the event of death |
| | 2. Savings- Benefit payable on maturity |
| Term policy | | Only risk cover for a specific period. |
| Endowment policy | | Survival benefit( for a specified period) |
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| Insurance- an asset everyone should have |
| Our life is uncertain |
- The only certainty is death- everyone dies
- The question is when?
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| Our assets are open to risks of all types |
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| So, insurance is needed to think ahead & be prepared financially |
- For old age.
- For sudden death.
- For assets & business.
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