fe insurance is a contract whereby the contracting party pays a certain amount of premium, and the other party pays the sum insured as compensation in the event of death or loss of life. Companies offer different types of services, depending on the insurer’s needs. The insurer reserves the right to receive service under the contract. It is the responsibility of the insurance companies to service the client under contract give. Life insurance is not a generic product. Often misconceptions are found among the general public about life insurance, such as:
1. No need to purchase my life insurance policy: That is not true. The main truth of life is death. The family that lives on the whole family, on the premature death of the man, the family falls into uncertainty, wants to stop the wheel of life. In many cases, the daily life of the child becomes difficult due to various problems including education, treatment, marriage. In the case of life insurance, the insurer employs one or more nominees, so that in the event of his death within the specified term, the nominee can be provided with the default insurance score. Therefore, buying a life insurance card may not meet the shortage of the person, but it is possible to overcome some of the financial problems.
2. Insurance companies pay less than the bank: When the money is deposited in the bank by FDR or any other name without purchasing the insurance policy, the bank returns the deposited money and a certain amount of interest to the account holder or his nominee. But life does not take any risks. It is not always fair to compare life insurance policies with bank profits. Because the two purposes are different. The bank only takes care of the deposit money, while the life insurance company deals with the financial risk-related issues of the receiver.
3. Purchase of life insurance policy includes money wastage: Purchase of life insurance policy is an investment. Not a waste of money anyway. When buying a policy, the insurer receives an insurance claim from the company. By claiming this insurance, the recipient can solve temporary financial problems, keep himself and his family free from any developmental work and financial worries.
4. I have a lot of assets so there is no need for an insurance policy: a lot of wealth creates liability many times. It should be noted that total liabilities (current liabilities and long-term liabilities) are less or less than total assets. If the total liability is high, then the deficit can be satisfied by purchasing an insurance policy equal to the additional liability. A life insurance policy is a long-term investment. One part of the profits earned from this investment can be measured in money, while the other is not measurable.
5. There is no need for an insurance policy in a lonely life: only life is a risk. The risk may exist or may come in the future. Because the future is unknown. So even if you have a single life, you should buy an insurance policy.
6. The company arranges for group policies for me: Many times employers provide group insurance for its officers and employees, where even if officers and employees are insured for their own lives, other family members stay out of life insurance. Just as other family members contribute to our growth, so do we. So if your life is at risk, but the lives of other family members are at risk, then peace will not come.
7. I have a policy, so no longer needed: the value of life cannot be properly assessed at the money mark. There are no specific restrictions on purchasing a life insurance policy. A competent person can purchase as many life insurance policies as he / she wants.
8. No need for a high score insurance policy: The amount of insurance a person needs depends on the socioeconomic status of that person. Proper care is needed to pay for medical care, payment of liabilities, child support, etc.
9. Without buying a life insurance policy, I will invest somewhere else: the risk exists in all investments. The sole life insurance policy serves as a means of risk reduction / control. Upon purchasing a life insurance policy, tax deductions are available up to a certain limit.
10. In my case, nominee insurance may not be worth the money: the insurance business is based on a policy. All parties involved in the insurance contract have to adhere to the policies. Insurable interest is an important principle in the case of insurance. It is not possible to insure that life does not have insurable interest. For example, people have insurable interest in their own lives. Both spouses have insurable interest over their lives. However, the debtor has no insurable interest on the life of the creditor. If all other information, including insurable interest, is correct, there is no barrier to obtaining the sum insured in the event of the insurer’s claim. Apart from the examples above, there may be many other ideas / comments. Insurance