Life insurance policy is an agreement between two parties agree to compensate on uncertainty of life, property or wealth in exchange of a fixed amount called premium. It is also the transfer of risk from one entity to another in exchange for a premium and duty of care. Life insurance is a risk mitigation tool and also a tax saving tool.Few years back, life insurance services in India were limited to big cities and towns with only Life Insurance Corporation of India providing the service. The lack of awareness of life insurance did not allow it to grow in rural and urban India. There were also lack of other life insurance agencies and corporations at that time. With the emergence of private corporation in the life insurance sector, the market has seen a boom. Now a days, all the big insurance companies are operating in India. The potential in the market is making these companies to come out with new and attractive life insurance plan.
Insurance is generally of two kinds, life insurance and general insurance. Life insurance policy covers life protection, retirement plan, children education and wealth creation. And in life protection, various things is covered, like term insurance, whole life policy, endowment policy, annuities and pension plan. The general insurance covers fire (covers all fire-related risk), marine (covers perils of travel) and miscellaneous. Miscellaneous category covers personal accident, business and risk mitigation, insurance of property, buildings, motor vehicles, factories, airplanes, home assets, flats and its contents, travel related accidents and losses and fidelity insurance of key employees.
With almost 14 big insurance companies in India offering multiple options to meet the insurance need of the consumers, Insurance companies are working aggressively in taping the market with various products and policy. Now the question arises that for which policy and plan one should go for. One needs to do the life insurance comparison before entering into any term or policy. Life insurance is totally dependent on individuals needs and requirements as to what suits the individual best. For each category of policy, one can have the life insurance comparison of all the big companies, which is available on the company's website or you can call the executive.
Wednesday, April 22, 2009
Friday, April 10, 2009
What is homeowners insurance?
Homeowners insurance provides financial protection against disasters. A standard policy insures the home itself and the things you keep in it.
Homeowners insurance is a package policy. This means that it covers both damage to your property and your liability or legal responsibility for any injuries and property damage you or members of your family cause to other people. This includes damage caused by household pets.
Damage caused by most disasters is covered but there are exceptions. The most significant are damage caused by floods, earthquakes and poor maintenance. You must buy two separate policies for flood and earthquake coverage. Maintenance-related problems are the homeowners' responsibility.
Homeowners insurance is a package policy. This means that it covers both damage to your property and your liability or legal responsibility for any injuries and property damage you or members of your family cause to other people. This includes damage caused by household pets.
Damage caused by most disasters is covered but there are exceptions. The most significant are damage caused by floods, earthquakes and poor maintenance. You must buy two separate policies for flood and earthquake coverage. Maintenance-related problems are the homeowners' responsibility.
How Much Car Insurance Should You Buy?-part1
Car insurance is not very exciting. Depending on which state you live in, it could be a smaller or larger piece of your budget than your neighbors across state lines.
How much insurance should you buy? Any insurance agent worthy of their salt will tell you that you should buy as much as you can afford. While this is a good rule of thumb, it is about as useful as a stockbroker’s tip to buy low and sell high. It might be sound logic but it does not get you any closer to an educated decision. A few filters need consideration in order to make that educated decision. First, what is the state required minimum coverage where you live? Second, what does the minimum cover? Third, what other coverage is available and can you afford it? Fourthly, what are you protecting?
The first two figures refer to Bodily Injury Liability Limits. For example, 20/40 means coverage up to $20,000 for each person injured in an accident, up to a maximum of $40,000 forth entire accident, and then you could have 20/40/10 with $10,000 worth of coverage for property damage.
Now that you know what your state requires, what are you actually covered for once you purchase the minimum? Using the coverage definitions that follow, find the types of coverage required and see what your state says is the accepted minimum.
Bodily Injury Liability covers other people's bodily injuries or death for which you are responsible. It also provides for a legal defense if another party in the accident files a lawsuit against you. Claims for bodily injury may be for such things as medical bills, loss of income or pain and suffering. In the event of a serious accident, you want enough insurance to cover a judgment against you in a lawsuit, without jeopardizing your personal assets. Bodily injury liability covers injury to people, not your vehicle. Therefore, it's good idea to have the same level of coverage for all of your cars. Bodily Injury Liability does NOT cover you or other people on your policy. Coverage is limited to the terms and conditions contained in the policy.
Comprehensive covers your vehicle, and sometimes other vehicles you maybe driving for losses resulting from incidents other than collision. For example, comprehensive insurance covers damage to your car if it is stolen; or damaged by flood, fire, or animals. Pays to fix your vehicle less the deductible you choose. To keep your premiums low, select as high a deductible as you feel comfortable paying out of pocket. Coverage is limited to the terms and conditions contained in the policy.
How much insurance should you buy? Any insurance agent worthy of their salt will tell you that you should buy as much as you can afford. While this is a good rule of thumb, it is about as useful as a stockbroker’s tip to buy low and sell high. It might be sound logic but it does not get you any closer to an educated decision. A few filters need consideration in order to make that educated decision. First, what is the state required minimum coverage where you live? Second, what does the minimum cover? Third, what other coverage is available and can you afford it? Fourthly, what are you protecting?
The first two figures refer to Bodily Injury Liability Limits. For example, 20/40 means coverage up to $20,000 for each person injured in an accident, up to a maximum of $40,000 forth entire accident, and then you could have 20/40/10 with $10,000 worth of coverage for property damage.
Now that you know what your state requires, what are you actually covered for once you purchase the minimum? Using the coverage definitions that follow, find the types of coverage required and see what your state says is the accepted minimum.
Bodily Injury Liability covers other people's bodily injuries or death for which you are responsible. It also provides for a legal defense if another party in the accident files a lawsuit against you. Claims for bodily injury may be for such things as medical bills, loss of income or pain and suffering. In the event of a serious accident, you want enough insurance to cover a judgment against you in a lawsuit, without jeopardizing your personal assets. Bodily injury liability covers injury to people, not your vehicle. Therefore, it's good idea to have the same level of coverage for all of your cars. Bodily Injury Liability does NOT cover you or other people on your policy. Coverage is limited to the terms and conditions contained in the policy.
Comprehensive covers your vehicle, and sometimes other vehicles you maybe driving for losses resulting from incidents other than collision. For example, comprehensive insurance covers damage to your car if it is stolen; or damaged by flood, fire, or animals. Pays to fix your vehicle less the deductible you choose. To keep your premiums low, select as high a deductible as you feel comfortable paying out of pocket. Coverage is limited to the terms and conditions contained in the policy.
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