What is Insurance

What is Insurance

Actual definition of Insurance is Risk Transfer Mechanism. 

       In simple words A person Transfer his Risk to the Insurance Company against Money. Insurance Company is Selling Insurance Products. When A person Buy the Insurance from any Company then he is Bound to pay the Premium (Monthly or Annually Payments) to Company and Insurance Company Provide him Coverage against money. for Example if Some one Purchased $10,000/- Annual Insurance Plan for the 10 years from Company A then he is bound to pay $10,000/- every Year in the Same Month in the form of Premium to the Company A. Now he is Insured for 10 years. If he pay some Premiums for Example 1 or 2 or 3 etc and If he died Naturally or Accidentally then his family get paid for his Insurance Claim. If Life Assured Complete his Plan till Maturity (Completion of Plan) then Company will Pay handsome Amount to the Life Assured.

Claims

       There are two types of Claim Insurance Company will have to pay the Family of Insured Person.

1. In case of Natural Death Insurance Company will have to Pay Almost $100,000/- (may be More) to the Family (Nominee) of Insured Person.
2. In case of Accidental Death Company will Pay the almost the Double Amount Almost $200,000/- Because %100,000/- for Life Cover and $100,000/- for Accidental Cover. 

Riders

   Insurance Companies Provide many kind of Extra benifits and these benifits are called Riders. Some Riders are Built in the Insurance  Plan and which are free of Cost and Some Riders are Optional Riders and we have to buy these Riders. mentioned below are the Details for Riders.

1. Accidental Death

   In Some Insurance Plans Accidental Death Rider is Builtin and in Some Insurance Plans Accidental Death Rider is Optional and will have to Purchase. Accidental Death Rider has its own Cover Sum and its normally Calculated Premium X 10. for Example If a person Purchased $10,000/- Annually Plan then his Accidental Cover will be Almost $100,000/-.

    2. Income Benifit or Family Income Benift

   Family income benifit or Income Benifit is normally optional Rider available to Purchased for some Annually Fees by the Life Assured. In this Rider at Death of the Life Assured Insurance Company will have to Pay Some Handsome Amount to the Family (Nominee) of Life Assured from Death of 

the Life Assured till Maturity (Completion of the Insurance Plan).

   3. Health Care Benifit

   Health Care Benifit is also Optional Rider. In Health Care Benifit Insurance Company Covers many Critical Diseases. Insurance Compnay will Provide Treatment of Subjected or covered Diseases. Insurance Company assigned some Big Hospitals for the Treatment and Life Assured have the right to get best treatment from mentioned Hospitals.

   4. Waiver of Premium

   Waiver of Premium is also optional Rider and in Some Plans Waiver of Premium is Built in Feature. If Life Assured opt Waiver of Premium Rider then In Case of Critical Illness or Disability of Life Assured Insurance Company will Waived of his Annual Premium (Company will Pay) till he will be Cured and Life Assured is Ready for his Job or Work.

Mentioned Above are Main Riders and Features of Insurance Plan of Almost all Insurance Companies. Some Insurance Companies have more Riders to Attract the Costumers.