Getting the right form of policy is important for sound financial planning. Some of us may have some form of protection, but very few of us really understand what it is or why it needs to be. Insurance is a form of investment or a superb tax-saving avenue for most Indians. Ask an average person about his / her finances and as part of their core finances they will proudly mention an insurance policy. Of the approximately 5 per cent of insured Indians, the proportion of adequately insured persons is much lower. Very few insured consider insurance to be purely that. Perhaps there is no other financial product that has experienced such systematic mis-selling at the hands of agents who are over-enthusiastic about selling products that equate insurance with investment that earns them fat commissions. Visit McEvoy Insurance & Financial Services.
What exactly is insurance?
Insurance is a means of extending a person’s or business entity ‘s significant financial risk over a wide number of persons or business entities when an unpleasant occurrence happens which is predefined. The cost of being covered is the monthly or annual payout the insurance provider has paid. In the purest type of insurance if the predefined occurrence is not recovered until the time specified the money paid as compensation. Insurance is effectively a means of spreading risk among a pool of insured people and lightening their financial burden in case of a shock.