Insurance Understanding | Video Illustration
Illustration;
Let us now understand, “What is Insurance and Why have it?” through a simple illustration with examples running in the video.
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Video timestamp - Transcript:
00:01 what is insurance and why have it? life's 00:05 full of surprises 00:06 your friend suddenly has a spare ticket 00:08 to see your favorite band that couple 00:10 whom you think we'll never get engaged 00:12 actually do and John finally buys a 00:15 round of drinks 00:16 but what if life's little surprises 00:18 aren't so great like breaking your 00:21 favorite phone 00:22 or something far more serious the 00:26 purpose of insurance is to protect 00:27 people from uncertainty of the future 00:29 when things don't go to plan or when we 00:32 need support for our life projects and 00:34 finally to give us peace of mind for 00:37 whatever's around the corner here's an 00:39 example Paul and Dave and neighbors Paul 00:42 decided to buy insurance to cover his 00:44 home and its contents but Dave bought 00:46 the latest games console instead a few 00:49 months later a fleet Waynesburg and both 00:52 Paul's and Dave's houses were flooded 00:54 everything downstairs was ruined 00:56 including Dave's games console while 00:59 they worried about how he was going to 01:00 repair his house and replace his 01:02 possessions Paul simply called his 01:04 insurance company and submitted a claim 01:06 they assessed the damage 01:07 calculated the value of the claim and 01:10 arranged payment to Paul he could then 01:12 afford to redecorate his house and 01:14 replace his ruined possessions here's 01:16 another example 01:17 Tom's goal was to one day own his dream 01:20 car but his salary meant this dream 01:22 would never be a reality Tom didn't want 01:25 to take risks on the stock market so 01:27 instead he purchased a life insurance 01:29 policy with survival benefits the policy 01:32 was set up over a specific number of 01:34 years and was guaranteed to pay out in a 01:36 greed amount at the end of the policy 01:38 term as long as he was still alive 01:40 Tom simply paid the same premium each 01:42 month and at the end of the policy term 01:44 it paid out tom was soon driving around 01:47 in his dream car we hope you enjoyed 01:50 this video
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So What is insurance? Insurance is a financial safety net, helping you and your loved ones recover after something bad happens — such as a financial loss, theft, lawsuit or car accident. When you purchase insurance, you’ll receive an insurance policy, which is a legal contract between you and your insurance provider. And when you suffer a loss that’s covered by your policy and file a claim, insurance pays you or a designated recipient, called a beneficiary, based on the terms of your policy.
The most common types of Insurance coverages are Life Insurance and General Insurance; Here is the brief explanation on the same.
‘Life Insurance’ - One can avail the Life insurance in order to protect the family due to premature death or death during the tenure of the policy. It provides the family with a lump sum amount that helps the grieving family to battle with financial struggles that may occur in absence of a breadwinner. ‘Term Insurance’ It is the most common form of Life insurance where you can pay the premium for the pre-decided term. The family gets the money upon the untimely death of the insured. ‘Unit Linked Insurance Plan’ It is an Investment-cum-Insurance plan. The premiums provide coverage as well as they are for the purchase of units of market-linked equity, debt, and other instruments. This has the potential to provide an opportunity for wealth creation apart from the life cover provision. Life Insurance Coverage Plans also come with tax benefits under Section 80C.
‘General Insurance’ - Non-life insurance policies count as general insurance policies that include insurance coverages for Health Insurance, Home/Property Insurance, Vehicle/Auto Insurance , Education Insurance, Travel Insurance and so on. Health insurance is the most important case and commonly availed. ‘Health Insurance’ You can buy health insurance for yourself or for your family. Some insurance companies have tie-ups with hospitals. So here you can use your policy number to avail of cashless services in-network hospitals. In other cases, you can claim reimbursement for hospitalization and treatments.
Wrapping it up:
The benefit of having insurance is that it prevents burning a hole into your pocket in unprecedented times. It gives you financial assistance for your losses and damage. The basic function of all types of insurance coverages is to provide damage control to the insured by bringing in a lot of people who pay to cover their risks. The fund is further used for capital formation through investment in the markets. This helps the insurance companies to keep running and settle/adjust the claims of the insured people.
Hint: Use these page links to know more in detail; 'Life Insurance', 'ULIP - Investment Plans', 'Term Insurance', 'General Insurance', 'Health Insurance'.
Terms and Conditions:
*Standard T&C Apply. For more details on risk factors, terms and conditions, please read the sales brochure of respective insurers carefully before concluding a sale. Tax benefits are subject to changes in applicable tax laws. For detailed communication on sales contact below authority.
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IRDAI Licensed Agent
- Mr. Dheeraj Bodduna
Financial Advisor
Contact: 85220 66133
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