What is insurance and what are its benefits?
Before we begin, we first need to know about how it works and why people need to know about these things.
Insurance is a means of protecting human life and property against uncertain risks or accidents. Anyone can take out an insurance policy to cover man-made natural disasters in their personal life, business and finances. Generally, insurance policies can be taken to cover losses due to accidents like fire, sea, flood, motorcycle etc. It depends on the nature of the company and organization. Apart from this, insurance policies can be taken for personal as well as social security.
An insurance or policy of insurance has two parts, the insured and the assured. In that case, both parties agree that the insurer will pay for loss from any cause mentioned in the policy, and that the insured will pay a fixed amount. Insurance premiums can be paid in one lump sum or in fixed terms.
An insurance policy can be taken out to cover art, appliances, furniture, fixtures, supplies, fire, flood, theft and more. Apart from this, a Navy insurance policy can be taken out when raw materials, manufactured goods are imported or exported. If the property is mortgaged as a bank loan, property insurance is necessary. That’s why it’s so important for entrepreneurs to be knowledgeable about insurance policies.
There are over 6,000 insurance companies registered in the United States to administer insurance policies, the employer or policyholder can contact any company with what they want. Insurance company representatives generally communicate freely with insurance providers.
The advantage is that in the event of a business accident or natural disaster, the insurance company is responsible for paying you. Once this loss is reached, entrepreneurs can turn again. You can start the project again with a new setting. There is no possibility of the project going bankrupt.
What is life insurance?
Life insurance is a contract where one party will pay a specified amount and if the other party saves life or death in exchange for that amount, the insured will pay compensation. Companies offer different services depending on the needs of the bidders. The Borrower shall have the right to perform in accordance with the Agreement. Insurance companies are responsible for serving the client in accordance with the contract.
Life insurance is not an easy thing. There are many common misconceptions about life insurance policies, for example:
1. I don’t need to buy life insurance: That statement is incorrect. The fundamental reality of life is death. The premature death of the person who leads the entire family to benefit leaves the family in a bad state, the cycle of life wants to stop. In the long term, children’s daily lives will be complicated by problems with education, medical care and marriage. In the case of life insurance, the bachelor designates one or more nominees to provide the specified policy upon death. Buying life insurance can therefore overcome some financial difficulties even though it is impossible to meet the needs of the individual.
2. Insurance companies pay lower interest rates than banks: If the insurance policy is not credited, the account holder or his/her representative will be refunded by way of a deposit and the money will be transferred and the specified amount. Bank or any other name. But there is no danger to life. Comparing life insurance policies to bank benefits is not always fair. Because both have different purposes. Banks only accept deposit guarantees, while life insurance companies deal with financial risk issues.
3. Life Insurance Policy Loan Loss Participation: Investment in the purchase of a life insurance policy. No amount of money will be wasted. If you bought the card, obtain an insurance policy from the lender. By taking this insurance, the beneficiary can face short-term financial setbacks, continue to work and relieve himself and his family of financial woes.
4. I have a lot of wealth, so I don’t need insurance: More wealth gives you more time. We need to know if total liabilities (current liabilities and long-term liabilities) are less than or equal to total assets. If the total liability is sufficient, the deficit can be paid by purchasing the same insurance policy. A life insurance policy is a long-term investment. Part of the return on this investment can be measured, while the other part cannot.
5. Life doesn’t need life insurance: A life risk is just a risk. Risks exist or may arise in the future. Because they don’t know the future. So, even if you have an individual life insurance policy, you have to buy life.
6. Organizations offer me group structure: Sometimes workaholismA ra provides group insurance for its employees and employees, where the officers and employees have their own life insurance, but other family members stop the life insurance. As we grow older, other family members have responsibilities, and we have responsibilities to them. So, if your life is safe, there will be no peace if the lives of other family members are in danger.
Now I think you all understand the insurance policy. I think