Abstract
The ultimate aim of Insurance is without a doubt to minimize the risks involved in various aspects of life and in addition to this, to cover and compensate the owner if any loss is suffered by the owner. Insurance may be taken to cover the risks involved in life, property and business. Mainly there are two types of insurance, namely, life insurance and general insurance. General insurance is all about covering fire and miscellaneous insurance. This type of insurance covers several things from burglary, theft, fidelity guarantee, livestock and crops, employer’s liability and lastly to insurance of motor vehicles. Insurance is a system of sharing risk and is responsible to pay the owner who suffers any kind of damage covered in the contract. Insurance is an ace card that compensates a person when everything is against the victim.
An Introduction to Insurance
The term life assurance better known as life insurance is basically a contract between two parties, one is the policy owner and the other is the insurer. A very common term is the face amount; this is nothing but the initial amount which is paid by the insurer to the policy holder when the policy matures or in other words the policy reaches the time frame. Life insurance policy covers all the risks involved in a person’s life but it does not cover other risks like fire, damage of assets etc, to cover such risks there is another insurance called non life insurance, this type of insurance covers all the risks involved other than the risks involved to ones life. Non life insurance covers risks ranging from fire, health, house and other important things. There are many agents involved in the process of getting a secured life insurance policy; these agents form a link between the insurer and the policy holder.
An Internet Source
“It’s best to establish clear parameters in your relationship with your insurance adviser. You should be clear about what your adviser can, and cannot, do for you. Discuss what you require for your business and make sure they are prepared to offer this level of service.” (Choose an Insurance Adviser and present your risk). It is always advisable to have an insurance policy to minimize the risks involved. The current period of recession has signaled the beginning of unprecedented situations and one must be geared up to face these risks. The most important step before getting a policy is to review the needs; according to the needs an insurance policy must be taken. The policy must compliment the needs and it should be in proportion to the needs of an individual. For instance, if a person opts to take vehicle insurance, if he sets a very high amount ignoring the other needs, this situation can be dangerous in the future so in order to secure the future to some extent proper insurance needs must be identified and an appropriate policy must be taken. There are several people involved in guiding the people who think they need an insurance policy, in the case of ambiguity, the people should not be reluctant to approach the other people who can guide them in order to accomplish this important task.
A Journal Article on Insurance Needs
“Most consumers depend on their employer for their health, life and disability insurance. But according to a recent report by the Center for Economic and Policy Research, this year’s recession will cause at least 4.2 million people to lose their health and insurance coverage. If the worst happens and the recession costs you your job, what would you do? (Recession- Proof Your Insurance Needs).
Both the articles stress upon the need to purchase an insurance policy. An In-depth reading of the articles suggests that the recession period has brought countless uncertainties with it and it is always good to be on the safer side. The need to purchase a policy becomes even more considering the fact that the recession is supposed to continue for another year or two. This is a clear indication of the fact that the future is not looking rosy for the businessmen as well as the normal people hence it is very fair to say that an insurance policy is a must at this point. It is now or never. If it is never then the people who opt to do the same are going to pay a very heavy price for this mistake.
Insurance often confuses the people and most individuals tend to stay away from insuring themselves from the uncertainties of the future. Many individuals tend to invest in stock markets, mutual funds, real estate etc but ignoring the important need of insurance can be devastating in the future. The awareness among many individuals about insurance is very low and this is another reason why individuals tend to stay away from purchasing policies. When an individual is not aware of a product, that individual is expected to avoid the product and the very same applies in the case of insurance too. Both the sources focus on the very same topic which is insurance and it should be made a point to be aware of the needs and accordingly the price of the policy should be decided. This is very important and both the sources used in the paper insist upon the same. An individual has to decide between a life cover or an investment plan and both the sources have given a good account of this. It is always good to go in for life cover because each passing day is making the life even more challenging than earlier and it is highly advisable to ensure that one’s life is secured. Insurance advisers plays a pivotal role in deciding which policy must be adopted and both the sources emphasize on getting the right man to advice. It is quite difficult to get the right man as there is commission associated with the deals that these people earn so they try to sell the policy which would benefit them the most rather than benefiting the insurer. Hence it becomes imperative to get hold of the right man. Family members are usually very helpful when it comes to finding the right man; any relative having good contacts can be very helpful in getting the right man. The final part is conducting a review which is another important aspect, for instance if a person opts for a child’s education plan than that individual has to ensure that the policy selected is in accordance with the goal set for the education. Goal refers to the monetary goal. All these points have been mentioned in both the sources used in the paper. If all these points are extensively followed than an individual can have a secured future.
References
Choose an Insurance Adviser and present your risk. In Business.co. UK. 2009. Web.
Recession- Proof Your Insurance Needs. In Wall Street Journal. 2009. Web.