HOW DOES THE INSURANCE MARKET WORK?
Table of Contents
Introduction- Insurance Market
The first step you need to know to become a professional and successful insurance agent With the aim of providing help in obtaining life insurance, first of all,
What is life insurance ?
Going to review why it is necessary?
In this Section, we look at the insurance market in India.
Begin by taking a look and introducing some of the basic concepts and ideas of life insurance.
We provide you the products that you can provide to your customers according to their actual needs.
To provide information necessary to assist in the interpretation of conformity they will sell.
The process will continue in the next few Blogs.
To know how life insurance works, we need to know not only human life but also the whole Insurance market has to be studied because other items are also insured but, Our focus will be on life insurance itself.
In this first part, we will talk about what is insurance? what is it for? and, why is it important for people?
What is Insurance?
We can define insurance as follows-
Insurance is a contract between the insurance company (insurer) and the policyholder (insured). In return for a consideration (premium), the insurance company pays the insured for a specific event, and promises to pay a specified amount.What is Insurance?
It all seems so simple. But what does it mean? necessary to answer this question
As the first step in gaining knowledge, we need to know why insurance is needed?
Need of Insurance
To understand the need of insurance consider the following case study –
Case study- Need of Insurance
Anil is 35 years old and he works for a Multinational Corporation (MNC). he has a son, Aditya, 10, for whom he dreams that one day he will become a doctor. Anil’s wife is a housewife and his parents are retired and depend on him.
Anil has taken a home loan and his son’s higher education, marriage and Investing monthly for self-retirement.
Anil is confident about it, wants Aditya to get everything well, and, he himself after his retirement Doesn’t depend on Aditya the way Anil’s parents depend on him.
Long time till now everything is going well as planned by Anil. but imagine that What will happen in the following scenario:-
One day while returning home from the office, Anil meets with an accident and dies.
What will happen? To his family, Aditya’s education, Aditya’s marriage, and home loan, etc.
Who will take care of his family?
What are the options available to Anil so that in his absence, Taking care of his family?
Now put yourself in Anil’s place and imagine that you are the income of the family. If you have to face the above scenario. What would you do?
That we don’t mean to hurt or frighten you. We use this case study ,We are trying to make you realize the importance of insurance with the help of All the problems faced by Anil and his family in the above scenario. So once again look at the above scenario and see How insurance can provide a solution.
Life insurance provides protection to the family of the income provider against his untimely death.
If Anil has adequate life insurance cover, then when he dies, the life insurance amount received from the company was to meet the living expenses of his family, education of Aditya and, It will also help in marriage, and in repayment of home loan etc.
Now after looking at the above scenario, we find that in this case the life insured, can act as a protective shield against untoward incidents.
As your family’s income provider, are you vulnerable to the risk of exposure? what
Do you have any financial goals that you want to protect?
See You in Next Blog…. 2-How does insurance work?