Coincare Financial

INSURANCE

Insurance is the equitable transfer of the risk of a loss, from one entity to another in exchange for payment. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss.

An insurer, or insurance carrier, is a company selling the insurance; the insured, or policyholder, is the person or entity buying the insurance policy. The amount of money to be charged for a certain amount of insurance coverage is called the premium. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice.

The transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer's promise to compensate (indemnify) the insured in the case of a financial (personal) loss. The insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insured will be financially compensated.

Why we need Insurance

Insurance is there to provide protection for yourself, your investment and your business. Disaster could take any form; car breaks down, roof leaks, a major home fire, an automobile accident that leads to a legal action and someone in the family becomes ill.

Insurance gives you peace of mind and you know that if anything happens to you, your family or your business that you will be financially secure.

The best course of action is to prepare for the worst and hope for the best.

Term Insurance

This type of life insurance policy is a contract between the insured and the life insurance company to pay the persons/s he has given entitlement to receive the money, in the case of his/her death, after a certain period of time. These policies can be taken for 5, 10, 15, 20 or 30 years.
Endowment Policy

In an endowment policy, periodic premiums are received by the insured person and a lump sum is received either on the death of the insured or once the policy period expires.
Money Back Life Insurance Policy

This policy offers the payment of partial survival benefits (money back), as is determined in the insurance contract, while the insured is still alive. In case the insured dies during the period of the policy, the beneficiary gets the full sum insured without the deduction of the money back amount given so far.
Group Life Insurance

This is when a group of people have been named under a single life insurance policy. It is popular for an employer or a company to add employees under the same policy. Each member of the group has a certificate as legal evidence of insurance. Unit Linked Insurance Plan

LIFE INSURANCE

What is Life Insurance?
Life insurance is protection against financial loss resulting from insured Individual’s death. In realistic terms, life insurance provides you and your family the financial security and certainty to deal with the aftermath of any unseen unfortunate events. wide variety of securities.

Why should I buy life insurance?
Life Insurance provides you and your family with protection against all the risks involved, moreover providing you an opportunity to grow your investments. It could be viewed as a long-term investment to provide for your child’s future expenses or your expenses, post retirement.

Why do I need Insurance?
You need insurance for Family that is financially dependent on you: If you have a family that is financially dependent on you, then you definitely need to insure yourself. The most common reason to buy life insurance is it provide protection to your family incase of any unforeseen events. The life insurance proceeds can be used to support your family members with the expenses.

There is no shortage of variety when investing in mutual funds. Loans or liabilities: It is very important to insure yourself if you have taken a loan or mortgaged your assets. It not only provides peace of mind but also a steady source of income for your family

Compulsory saving-cum-investment: A life insurance policy could be used as a compulsory saving-cum-investment avenue. Proceeds from the insurance policy could be used to fund future expenses such as child’s higher education or retirement funds or even a well-deserved holiday.

Partner in a firm or Self-employed: It is highly needed by people who are partners in a firm or have their own proprietor firms. Life insurance can be a critical component for specialized business applications - such as funding a buy-sell agreement. The proceeds of a life insurance policy could be used to provide cash for the purchase of a deceased owner’s interest in the business or to pay off business liabilities.

GENERAL INSURANCE

There is no shortage of variety when investing in mutual funds.

General insurance catering to the areas of automobiles, property and enterprises are referred to as "standard lines" whereas insurance products serving to protect anything outside the aforementioned features are known as "excess lines". Encapsulating the essence of insurance, general insurance like that of life insurance also revolves around an agreement between insurer and the insured. With adequate pooling in of funds as premium and its due investment, general insurance also serves the purpose of risk management by handing out respective claims. But general insurance usually involves a short term agreement between the insurer and the insured with the term extending not more than a year. Yearly payment of premium is another of its notable features.

Importance of General Insurance

1)Ensuring an agreement between the insurers and insured which forms the basis of its financial transactions, general insurance sells products and policies safe guarding various facets of property centric risks. It seeks to protect home or immovable properties against the various natural perils of fire, flood, storm, inundation and earthquake. It also covers risks pertaining to theft and burglary. Factory and its associated installations, along with breakdown of machinery may also come under the domain of general insurance.

2)Besides immovable property, even movable property comes under General insurance's protective domain. There are general insurance products or policies covering the interests of automobile owners and those of cargo owners. Insurance against time bound damages caused naturally over time and those of theft, shipwreck and accidents where the insured had no direct role to play in its occurrence also come under its protective purview. There are particular policies seeking to protect the hulls of ships on account of their greatest exposure to risks.

3) Some of the areas related to general insurance are geared to benefitting individual personality. Commonly known as personal insurance, accident and health insurance are offered by such beneficial products without catering to the risk of death. Such insurance generally covers the cost of hospitalization by way of reimbursing the victims or at times give way to cashless hospitalization. It is important to note that accidental insurance and health insurance have enough products of different customizations to cater to the insurance of an individual or a group of individuals. For example employees working under an organization may come under its purview. Group insurance is cheaper because the insured can avail of discounts of various types.

4) Liability insurance catering to the liability of a third party comes into play when there is a risk to another person's life or health on account of the owner's property and the owner is legally bound to compensate Thus for meeting hazardous situations arising out of a legal course of action, liability insurance which is also a part of general insurance, becomes beneficial. Car owners, house owners, factory owners and medical practitioners may come under the domain of liability insurance. There are policies specially made keeping in mind the target group or groups of individuals whose business may come under the risk of legal suits.

5) Even credit insurance seeking to protect the interests of private money lenders and financiers are protected by general insurance. To cater to contingencies arising in course of traveling requisite general insurance on part of travelers is known as travelers' insurance. Pet insurance, an idea common in the west, seeks to cover the relative expenses involved with regard to the maintenance of pets and other domestic animals. Even the loss of pet is covered under this special branch of general insurance known as the pet insurance. Similarly there are insurances to cater to the risks of private as well as public event management groups.

6) Usually the actual value of the property, together with the anticipated value of loss is counted for the purpose of insurance cover. Accordingly the price and premium of a policy are determined. If the actual value of the property is not highlighted, as part of its risk calculation; in the event of its occurrence in reality, the owner will be required to pay additional premium. Actuaries- a special group of professionals play an important part as far as pricing and premium evaluation of a product related to general insurance is concerned. Most of the policies involve advance payment of premium; while only a few of them are adjustable with premium payment being dependent on annual profit turnover or average value of stock.

7) For every individual and all forms of property holders, general insurance is a must. Damage partial or complete may be shattering; but general insurance serves to mitigate the extent of damage. Similarly industrial units and business houses need to protect their unit and seek adequate cover for various costs of repairs. They also need resources to counter the risk of liabilities. General insurance extends protection to all these risk prone areas. Awareness is necessary along with ones exposure to the possible risk elements so as to avail of its maximum benefit.

8) As far as availing of its maximum benefit is concerned, it is all about buying the right policy. For this a prospective policy holder needs to make a due calculation of the risks of loss. A good policy from his point of view should be cost effective where the quantitative amount of loss is higher than the total cost of insurance and yearly premium to be entailed as part of a general insurance policy.