We are going to review the reasons why it’s important. In this section, we examine the insurance industry in India. Begin by looking at and explaining some of the most fundamental ideas and concepts in life insurance. We supply you with the items you could offer your customers based on their needs. To provide the information needed to aid in interpreting the conformity of the products they sell.
This process is expected to continue over the next few blogs. To comprehend how life insurance works, it is essential to understand that human life and the entire insurance market must be studied since other products are also covered. Still, our primary focus is on the life insurance itself. In the first segment, we will look at the definition of insurance. What is it used for? And, why is it essential for the people of today?
What is Insurance?
Insurance can be defined as follows:
It is an agreement between an insurance provider (insurer) and the policyholder (insured). In exchange for a payment (premium), the insurance company will pay insurance to the policyholder for a particular occasion and guarantees to pay a specific amount.
What is Insurance?
It’s so simple. What exactly is it? It is essential to answer this question.
The first step to learning is to understand why insurance is necessary.
Need of Insurance
To better understand the importance of insurance, consider these case studies.
Case study Need for Insurance
Anil is 35 years old. He is employed by a Multinational Corporation (MNC). Anil has a son named Aditya, 10, and he dreams that one day he’ll become an ophthalmologist. His wife is a housewife, and his grandparents are old and rely on him.
Anil has taken out a mortgage on his home and his son’s education. Wedding and investing monthly to save for retirement.
Anil is sure about this. He is sure about it and confident about it; Aditya does everything right and will not even rely on Aditya as much as his parents depend on him.
It’s been a long time since everything has been running according to plan of Anil. But imagine what would occur according to the next scene.
A few days later, on the way home from work, Anil meets with an accident that causes him to die.
What happens next? For his family, his education, the marriage of Aditya and home loan, etc.
Who will care for his family?
What options do you have for Anil to ensure that he can take care of his children during his absence?
Put yourself in his spot and imagine you’re the sole source of income for the family. Suppose you were faced with the scenario above. What are your options?
We aren’t trying to cause harm or terror. This case study is used to illustrate order to help you become aware of the significance of insurance by highlighting all the issues faced by Anil and his entire family members in this scenario. Take a look at the scenario above and consider how insurance could help you solve the problem.
Life insurance protects the family members of the income earner against sudden death.
If Anil had sufficient life insurance coverage, then at the time of his death, the amount of life insurance that the company paid was to cover the expenses of living of his family, as well as the education of Aditya and assist in marriage and the repayment of home loans, etc.
When we look at this scenario, we see that, in this instance, the life insurance policy can be a protection safeguard against unintentional events.
Take a lookConsider it.
As the primary income source for your family, Are you at risk of risk? What are the consequences?
Do you have financial goals you’d like to safeguard?