Insurance is a tool to do risk management by which you as a buyer of any insurance policy (i.e. Life, Health or General Insurance) transfer the cost of a future potential loss to another party (the insurance company) by way of paying a periodic advanced monetary compensation known as the premium.
An Insurance Policy allows you to protect yourself from significant potential damages, losses and risks at an affordable cost. Insurance as a concept works on the law of large numbers which means that contributions come from many in the form of premium whereas the losses occur to a few. By paying a premium amount for protecting against a certain type of loss, you will be protected for a certain sum of money that you will receive if you face that loss. In other words, an Insurance Policy is like a promise of compensation by the insurance company for specific potential future losses as covered in the particular insurance policy.
Different Insurance products are designed with different set of objectives and to safeguard against various types of losses and risks. For example, Life Insurance Plans have the primary objective of giving monetary compensation in the case of death of the policy buyer. Similarly, your Motor Insurance is to compensate your vehicle for the accidental damages and risks arising out it. At Raghunandan Money (Rmoney), we have a dedicated Insurance Desk to answer all your queries on Insurance, Policies, Products and Offerings.
Broadly categorizing, there are 2 types of Insurance Policies: Life Insurance and General Insurance.
Life Insurance is an insurance policy providing for payment of an assured sum of money to the person insured or person nominated on the happening of a certain event. It is a good tool to protect your family financially, in case of death, by providing a significant fund for the loss of future income. Life Insurance can be in the shape of a Term Plan where the compensation is only on the death of the person insured and hence the premium is often very low. Though in India, people have not realized the importance of Term Plan but in advanced countries it is generally the first insurance policy that a person buys. Further, in life insurance you also have the option to choose from endowment policy and money-back policies.
General Insurance is an insurance of any asset other than life. You can buy Health Insurance to take care of medical treatment costs, you can buy Travel Insurance, Motor Insurance, House Insurance, etc., each having an objective to safeguard monetary associated risks and costs. Each of the General Insurance products has its own benefits at the core of its policy.
Among all the financial products and investment options, Insurance is like a basic necessity. Primarily, anyone who has a family to support or liabilities to meet, if not today, maybe in future, must buy an Insurance Policy to safeguard against unexpected future risks and monetary losses. In India, people still buy insurance primarily as a tax saving option or as an investment product. Every product or life carries a certain economic value which has to be protected or guaranteed as much as possible from future risks. Be it a working professional, a businessman, a housewife or a child, insurance is equally important for all. Therefore, selecting the right insurance product and buying the adequate insurance value becomes very critical. And that’s where Raghunandan Money gives you expert insurance advice.
Every person on the planet faces two risks in life:
Buying Life Insurance is required mainly to:
When you plan to invest in Insurance products, the first key question is what insurance should you buy? You should protect yourself against the unforeseen circumstances which you believe would be posing bigger risks to you. Some insurance products which are becoming kind of necessity these days are: Term Insurance, Accident Insurance, Health Insurance, Pension Plans, etc. While Life Insurance and some types of accident and Health Insurance are offered by Life Insurance Companies, Property Insurance, Health and Accident Insurance are offered by Non-Life Insurance Companies (also known as General Insurance Companies. The Insurance Policy that you buy must meet your requirements today and tomorrow.
This means you must first identify what your needs are, your liabilities, your future aspirations, financial requirements, risks and what you expect from the Insurance Policy. You must choose your Insurance Policy depending on which life-stage you are in, and your aspirations for the future. It will differ based on whether you are about to start a family or you have growing children with education needs or you are at a later stage of career willing to plan for your retirement.
You should also buy a health insurance policy preferably early during your youth and ensure that you are continuously covered. While Third Party Insurance for your motor vehicle is a statutory requirement as per the Motor Vehicles Act, it is advisable to buy a Comprehensive Policy that covers your vehicle against own damage as well. Protecting your house and contents against the risks of fire and flood will secure your hard-earned savings too. But overall whatever Insurance Policy you are buying, start early. The earlier the better.
There are more than 20 Insurance Companies dealing in each of General, Life and Health Insurance products. These companies have different products, plans and schemes. What makes it even more complex is that you also have the option to combine multiple Insurance Policies or benefits (known as rider) on your basic Insurance Policy.
This makes Insurance a very vast and complex subject. Hence when buying an Insurance Policy, you need to assess your needs, your profile, insurance company, the product and very importantly compare the different Insurance Companies and products so that you pick the right one for yourself.
When you buy an Insurance Policy directly from the Insurance Company itself, they have a biased intent to sell their product. But when you choose Raghunandan Money to buy an Insurance Policy, we make your investment transparent and unbiased, based on what works best for you.
When you are investing in Insurance, you must see that you are not under-insured (buying insurance of lesser amount) or over-insured (buying insurance of higher amount). Raghunandan Money is an IRDA registered Insurance Broker that serves as a bridge between you and your Insurance Company.
When you come to Raghunandan Money to buy an Insurance Policy, be it Life Insurance, General Insurance or Health Insurance, you are coming to the Insurance Supermarket. Rather than offer products of just one or two insurance companies, we bring across products of all Insurance Companies in India on a single platform.
We also help you to invest in the right insurance product based on your profile and requirements, and then help you to get it at the right price.
As your one-stop Insurance Broker, we are with you during the entire lifecycle of your Insurance Policy – right from the time you invest in an insurance product, to facilitating policy servicing, premium payments and even claim servicing.