The correct type of insurance is essential for healthy financial planning. Some of us may have insurance, but few of us truly grasp what it is or why it is necessary.
For most Indians, insurance is either a kind of investment or a great way to save money on taxes. If you are resident in Spain then you can also get the best private health insurance from turner insurance.
Image Source: Google
When asked about their investments, the average person will proudly list an insurance product as one of their primary investments. The proportion of Indians who are adequately covered is substantially lower than the about 5% who are insured.
Only a small percentage of the insured consider insurance to be solely that. Perhaps no other financial product has seen such widespread mis-selling by agents who are overly enthusiastic about marketing products that link insurance to investments in order to earn large commissions.
What is Insurance?
Insurance is a method of sharing a person's or business's major financial risk among a broad group of people or businesses in the event of a predetermined unfavorable event. The monthly or annual compensation given to the insurance company is the cost of being insured.
The money paid as compensation is not returned in the purest form of insurance if the predefined event does not occur within the time frameset. Insurance successfully spreads risk among a group of people who are insured, easing their financial burden in the event of an unexpected catastrophe.
You become the insured and the insurance firm becomes your insurer when you seek financial risk protection and enter into a contract with an insurance provider.
This is the amount of money that a life insurance company agrees to pay if the insured dies before a certain date. Bonuses added in the case of non-term insurance are not included. This guaranteed sum is known as Insurance Cover in non-life insurance.
