In today’s time, the global economy is passing through a phase of uncertainty and so are our individual lives. The fact is we need protection but the question remains how? The answer is Insurance. Any individual can cover himself or herself with insurance to secure their individual futures, although the amount, duration and type of insurance will depend on the individual’s age, earning capacity, financial goals, dependents and some other factors. It is best to start early in age as the premium to be paid becomes lesser and hence for a lesser amount, more coverage can be attained. If a person wants to plan for retirement then a retirement plan is beneficial.Lets have alook at personal insurance definition.
An individual wanting to get periodic returns can opt for money back policies. The mode of premium payment can be monthly, quarterly, half-yearly or annually as per convenience. One can opt for Unit Linked Insurance plans or ULIPS if one wants to get the benefit of exposure into the equity markets. However it depends on risk appetite and understanding of equity market of an individual. Term Insurance is a cost effective mode to get huge cover. In case of term insurance, one has to pay very less premium and can get very good insurance cover. However it is not a plan to create wealth but to increase the safety net for one’s near and dear ones.
In India, Insurance Regulatory And Development Authority looks after the legal aspects of the Insurance business and keeps a tab over any sort of malpractices.Although LIC or Life Insurance Corporation of India is the largest market player in insurance, new and large foreign entities are also registering their presence. Any individual has to pass or clear an exam conducted by IRDA to sell or deal in insurance in India. So we have a good, efficient and transparent government system in India to protect the interests of the consumers. In the upcoming budget, the Foreign Direct Investment cap or FDI is proposed to be increased and some more amendments are likely to be brought to encourage the insurance business. So get insured and create safety and wealth for yourself and your family.