INSURANCE: Savings Scheme for a Guaranteed future.
You can actually become rich overnight after retirement
Insurance as a pooling of risks, aims at restoring anyone holding a policy to the original position that they were before a loss occurred. But in spite of the many year of the emergence of insurance companies in world the industry is still developing and largely under exploited several people in world today. One of the reasons for this is because of only a few people out of the millions of people in the world and society know precisely the benefits to taking up insurance policies.
A lot of people in the world are skeptical about investing their hard earned money by way of taking up policies with insurance companies because of their lack of trust and confidence in the companies for example, where insurance in quite compulsory for their citizens in all countries are vast on the knowledge of insurance is supposed to be a protection against risks and not an investment in the real sense as people often term it to be.
WHAT EXACTLY IS INSURANCE
Insurance is legal contract which protect a person from contingent risks of losses through financial means, and provides for individuals, a compensation over risks likely to be suffered in everyday life. Insurance is designed to protect the financial well-being of an individual, company or an entity of an unexpected loss.
These contracts of insurance are called policies and are provided by insurance companies. The insurance companies charge a regular amount from the customers, who are paid back, either in part, or entity, to the customers in case of a definite loss. This regular amount charged from customers is called insurance Premium. An insurer is a company selling the insurance while an insured or policy holder is the person buying the insurance policy.
WHY YOU SHOULD TAKE INSURANCE POLICY SERIOUSLY
1 Man on a daily basis is faced with many risks or uncertainties which are both know an unknown. When something in adverse happens on respect of this risk, there will always be a financial loss. This is where insurance come in. For example, a car owner knows that several cars get hit or even stolen. You never can be sure whether yours is the next and also uncertain about the extent of the loss and the cost repair if such happens. This uncertainty is transferred to the insurance company in case any risk materializes.
2. Also, people may become ill. They may die of illness or accidents. And bad enough if the person is the head of family. So insurance is a manner of financially insuring that if such incidents come about, the loss does not affect the present well being of person or his family member.
3. It promotes saving because when you are insured, you have to pay premium. And compared to banking, you don’t have access to your money until the stipulated number of years which is a minimum of two years, depending on the insurance companies,
4. Insurance promotes investment. The insurance company invests your money in different sectors of the economy. By the end of your insurance, you can always get your money and invest it in a business and you can also turn it into annuity in which you will be paid a particular amount monthly.
5. Insurance also helps you to plan towards your retirement age. Hence, when you retire, it is till easy for you to maintain the standard of life you are living.
6. You can also save towards the future education of your children. Most times, parents find it difficult to send their children to school after retirement but with a children education policy, your children’s education guaranteed.
The importance of insurance cannot be over emphasized. However, a lot of people do not want to have anything to do with insurance today because at one time or the other, they have had bad experiences and these have made them to lack confidence in the insurance sector. Either when they had an accident and it was difficult for insurance companies to redeem their claims or at the maturity of their premium, the total money they were expecting, which is called sum assured was not what they where given. But not what is use to beer that time is now.
WHY INSURANCE IS NOT PERFORMING WELL
From research, the major reason why several people round the world are not into insurance is due to lack of awareness of the several packages now available in insurance companies. This is as a result of the fact that they, the companies perform below their full capacity.
Several years back, insurance policy was about general insurance and life assurance. The general insurance covers insurance against properties while claims due on life insurance were only meant to mature and be claimed by the beneficiary after the death of the insured. It was more of a savings scheme put together for the family the insured leaves behind after their death. With time, several people frowned at this policy insisting that they should be able to benefit from their investment while still live.
Hence, the insurance bodies came up with several packages that the insured can benefit from even while still alive and family member will still benefit from this investment after the death of the insured. There are several packages available with the insurance companies. A saving scheme for a period of year, investment for your children till a certain age and lots more.
Also, many people mentality is cash driven, whereby, you get your product or service in exchange for your cash almost immediately and this does not apply to insurance. This is one of the reasons several people don’t consider insurance a necessity.
The public perception, that the insurance companies don’t settle claims, is to a very large extent one of the reason why insurance is still largely unaccepted by most of the populace.
But, the insurance bodies have since woken up to their duty and are treating insurance the way it ought to be done.
So today investing your future by invest on insurance company so that your future retirement with not face bad days, your children education with not have setback, went you retire from your work investing insurance today for you goods that coming just here get ebook with tell you how and where to invest insurance for your future visit now for more info