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  • Category: Miscellaneous

    An Insurance, Is really tool to financial security?

    I strongly believe that insurance is the tool to safeguard our financial interest either life or general thinks. But I frequently find people who are not aware of the benefit of the Insurance. They just feel that its a waste of money and nothing comes out of taking insurance. People have somewhat awareness about Life insurance but very few who knows about general insurance.

    I want to know from ISC family. Do you believe that insurance is a tool for financial security? if yes why you feel so or the point you find its benefits. Let the knowledge of insurance spread.
    If no then why you felt so?

    Thank you
  • #653428
    A family depends on the earning person for all the expenditure. Based on the income of the family the life style will be decided. A high earning family will have its own car whereas an average earning family may use public transport or a hired vehicle. By any chance if some thing happens to the earning member, the whole family will be in troubles. They can't come out of the style they got accustomed. At the same time they can't afford. Exactly in such situations the insurance will come in handy. So insurance is more for the family if in case something happens to the earner. That way insurance will help the family than any thing else. If we take an insurance policy there is an assured income after the maturity of the policy. But in other type of savings there is no assured amount. You may get more than expected or you may lose a part of your investment also. In addition to that the insurance policy amount will be exempted from income tax. So you have better benefits in this insurance. General insurance will safe guard your properties. The amount of premium is not very high but if something unwanted happens to the property , this insurance will come in handy. That is why I recommend everybody to have insurance.
    drrao
    always confident

  • #653495
    M not sure

  • #653519
    [Response removed by Admin. Read forum policies.]

  • #653635
    Insurance is a safeguard for bad times. It is a type of investment only for the calculated risks. People feel that nothing will happen to them or their belongings and ignore the insurance.

    It is always better to put some money in insurance for the well being of the family in case of any eventuality.

    Thoughts exchanged is knowledge gained.

  • #653668
    Yes, it is a tool for financial security. I was also like people who used to think that insurance is a waste of money until the accident of my wife. She fell down and broke her knee and had to undergo the knee replacement which cost 2 lac rupees and I got whole money from the insurance company.

    It's very useful to have a medical policy.

    Also, life insurance policy is good as they give financial aid to the dependents if anything happens to the insured person.

    One of my acquaintance died in an accident but the best part was that he had life insurance (term end plan) which turned out to be the major financial source of money to her wife and kids after his death. So one should always take life insurance plan to secure his family.

    Sanjeev

    " It is better to be hated for what you are than to be loved for what you are not" ... Andre Gide

  • #653672
    I have written many articles on insurance on this site (and elsewhere). I always maintain that insurance provides a protective umbrella in case of emergencies and mishaps. But, unfortunately, many people take insurance as an investment tool. Consequently, when they find that the returns on their investment (actually premium) is very meager, even less than the returns generated by the savings account, they discontinue paying the insurance premium. The basic purpose of taking the insurance is defeated.
    The emergence of ULIPs further creates confusion in the minds of common people who are almost financially illiterate. Even further, the dishonest agents create a terrible problem in the minds of such investors who take insurance policies as a means of investment.
    Now, it has become the duty of the Government to teach people the difference of investment and insurance and the necessity of both. The insurance companies and agents have failed miserably, most of the time they have failed intentionally.

    Beware! I question everything and everybody.

  • #653715
    Insurance is not an investment. It is basically a safeguard for bad times and eventualities. There are various types of insurance products available in the market and one has to choose from them as per one's requirement.

    For example, a health insurance policy takes care of expenses towards hospitalization and cost of medicines. As medical treatment charges are very high it makes sense for going for a health Insurance policy.

    Those who can afford insurance premiums can definitely go for different types of insurance policies to reap their benefits in many adverse conditions in the life.

    Knowledge is power.

  • #653859
    It is more like an interim relief given after a calamity. For some it may suffice to tide over the financial loss, for other sit may be just a small relief for the time being. In some rare and few cases depending on the court's granting relief, the amount can be good enough, but when comes after a delay, that also may not serve much. Insurance cannot compensate or bridge for the real loss.

  • #653999
    Some people who don't believe insurance companies can be understood, because scammers often get in their way, who simply use their money and, at the request of insurance, disappear.


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