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Insurance. How to choose right profitable Insurance ?

Insurance| Insurance is a very important part or thing in life. Insurance companies provide various types of Insurances, so today we are going to talk everything about the Insurance. How Insurance companies make money? What are the various kinds and types of Insurances? How insurance plays very important role in our life so everything about the Insurances. So lets Start :

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Insurance:

First of all we need to know what is Insurance? Insurance simply means protection from any future troubles means to cover your life and property risks Insurance is an option. Insurance is a legal agreement which is between two parties that between you and the Insurance company. So, according to agreement when you do your insurance with a company then if you face any loss in the future projects, then insurance companies bear the whole expense of that loss. So Insurance gives you the security that you can do any work without having any fear of any kind of loss. But you must read the agreement before signing it as there are some terms which are covered in the agreement.

How Insurance Works? :

According to Insurance agreement, Insurance Company charges the fixed amount of money from the insured person which is called as premium. After getting the premium if the insured person gets any kind of loss, then according to the terms and condition of the insurance policy the loss will be paid by the company. Similarly it works for the property and motor vehicles if these faces any kind of damage, then according to the terms and conditions of the policy the expense will be paid to the insured person.

Types of Insurance: 

It is mainly of two type Life Insurance and general insurance. But nowadays there are many types of insurance which are available, so let’s discuss them all here.

1. Life Insurance: 

This is for the insured life of the person. If a person dies, who is insured then the insurance company gives the consideration (money) to the family of the Insured person. The importance of this life insurance is more when the head of the family died and if he the only on to safeguard the financial security of the family. Then at that time this money gives the support to the family that’s why Life Insurance is very important. 

2. General Insurance: 

In this type of Insures all types of Insurances including Home, Vehicle, Health, Animals are covered. Here are these general insurances :

a.) Home Insurance:

Many people did the home insurance by this in the future by any means if the house gets any kind of damage then insurance company bear the all the expense. In such insurance fire, earthquake, flood, strike, theft all are covered in this type of insurance.

b.) Health Insurance:

It is also very must for everyone. It covers all the expense related to health and also depends on what type of insurance you are taking its terms and conditions. Here health insurance policy works only there where the hospital is associated with that insurance company. They're also such policies which cover your whole family health insurance. So you must give such policies a priority.

c.) Motor/ Car Insurance:

This type of insurance is necessary in India if you don’t have the Vehicle insurance then you will be fined by the government. According to this type of Insurance the damage to your vehicle is paid by the insurance policy company. If any other person got injured or died by hitting to your vehicle, then such type of expense will be paid by the third party car insurances.

d.) Crop Insurance: 

It is mainly for those farmers who takes the loans for farming. In this any type of damage to the crop by any means will be covered by the Insurance company. This helps the farmer a lot during the drought conditions.

e.) Business Liability Insurance :

This type of insurance cover the company products and if the consumer get affected by any product then this will be covered through this Insurance. If any harm is done to the consumer by company product then the whole expense from it’s fine on company to legal action process is taken by the insurance company.

f.) Travel Insurance:

This insurance is also very popular nowadays. This insurance protects us from any harm during the travelling. Every expense if the insured person faced with any harm situation than the whole expense is bearable by the insurance company. The limit of this policy is between your starting and ending time of journey.

How do Insurance Companies Make Money? 

Major source of earnings of Insurance companies is a Premium that insured person pay. Many people do health insurance, car insurance, but their health is good and their car does not get any harm or damage then insurance company gets profit in that situation. Also insurance companies also invest money in many other projects from which they can have the profit. Insurance companies invest money in bonds, stock markets and gold etc.

Insurance Company Expense:

1. Company Expense:

In this all the expense related to where it is placed, office and the workers of the companies are included in this type of expense.

2. Insurance Agent Commission:

This also company has to bear. If you want any Insurance then you can get it through the agents which help you to get this. Then the company has to pay them their commission as well this also counts in the company expense.

3. Advertisement: 

You must have seen many companies ads on TV related to insurance. Then these types of advertisement are also expense for the company, but in reality this is not the expense it is invested. If by watching the ads, some people get the Insurance from that particular company then it is profitable for the company.

How to choose right Insurance? 

There are hundreds and thousands of companies out there in the market which are providing the Insurance facilities. When one wants to choose one he might get confused which one is right for them? It is very important to choose the right company as you are paying a premium to the insurance company to get the best Insurance policy one can have. Here are some points to check out before buying any insurance policy :

1. Check all the top rated companies having good ratings. There are many services available on the internet related to the rating you can find out from there.

2. List out the one which is covering maximum coverage with less money. Also, who doesn’t want to save the money so go for the cheap one with maximum coverage.

3. Check Type of Insurance whether is a term insurance or endowment insurance.

4. In Endowment there is a very high commission to the insurance agent so they will always try to convince you to get this one and try to show you more benefits over others. And a fixed amount is needed to be given every year it has less coverage. It is very costly.

5. Where as in Term Insurance there is a very less commission to the Insurance agents and is the best one, but agents will never suggest you to buy this one. It has higher coverage than others. Insurance agents will try to make money so they will never suggest you this one. 

6. Choose the one which you find relevant to your requirement and which is beneficial for you saves the money for you and give you the best results.

So that’s all about the Topic “Insurance. How to choose right profitable Insurance ?” I hope you all learn something new and thank for giving time to read it. And if you like it then click on any ad that will help and share it.

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