Benefits Of Insurance Coverage: A professional Insurance market is one that is open and honest in its dealings with customers and one that keeps the interested of its customers at the forefront of all that it does. An Insurance market that operates in a professional way will bring many benefits to its customers. Let's have a look into the top 5 benefits of Insurance in General for an Individual.
One day while returning home from the office Michael has an accident and dies. What will happen? Who will take care of the family, What about his Son's Education and Marriage? What are the options available to Michael that his family can be taken care of in his absence?
| Benefits Of Insurance In General |
Michael is 35 years old and works for an IT company. He has an eight years old son, whom he dreams will one day become an engineer. Michael's wife is a housewife, and his parents are retired and dependent on him. Michael has a home loan and is making monthly investments for his sons higher studies and marriage. Everything is going fine with the plans. But imagine what will happen in the below scenario.
One day while returning home from the office Michael has an accident and dies. What will happen? Who will take care of the family, What about his Son's Education and Marriage? What are the options available to Michael that his family can be taken care of in his absence?
Now put yourself in Michael shoes and imagine you are the family income provider and have to face the above scenario. What will you do? Relax! Our intention is not to panic or scare you. We are using this case study to try to help you realize the importance of insurance which is the solution to all the problems. So let's look at the scenario again and see how insurance can provide a solution.
Life insurance provides protection to a family on the untimely death of the income provider. If michael has adequate life insurance cover, the money received from the life insurance company can help to support his family. The insurance money will help to take care of the family's living expenses, his son's education and marriage, and the cost of the home loan etc.
We can see how insurance can safeguard a person against unexpected events.
How Does Insurance Work?
Premature death is not only one risk in the entire life of an Individual. An individual can face many risks in his entire life like - Need for medical care at some point, Home renovation, Accident Cover, etc. These risks can be handled in different ways.
Risk Retention
As per the above-said example, Michael to bear the risk that he will have to provide for these situations himself, and so do nothing about them. While times are good and none of these events happen, Michael need not be worried. But the moment any one of them does happen, Michael will be in trouble. So it is definitely not wise for Michael to retain, or handle, these risks himself.
Risk Transfer
Risk Transfer is a way of handling these risks by transferring them to someone who can handle them properly.
Simple Words, Insurance is nothing but a risk transferring mechanism wherein the person taking out insurance and transfers their risk to the insurance company in return for a payment (known as the Insurance premium).
Top 5 Benefits Of Insurance In General for an Individual
Higher Confidence Among Policy Holders
Aa professional approach of need-based insurance selling combined with various steps like regulation, a grievance redressal system, the Ombudsman and the IRDA grievance call center have greatly helped to build the public confidence in the system. The Regulator body is always supporting the clients in meeting their needs.
Increase in Insurance Penetration
India has the world second largest population and thereby the potential to be the second biggest insurance market. The addressable market is so vast that there is scope for all insurers to find new customers rather than competing with each other for the same ones. This will increase the market penetration of Insurance, but will only be true if the public has confidence that they are safe to address their needs through buying insurance.
Social Benefits
As Insurance spreads to more parts of the Indian community, with more people seeing it as a safe and valuable option, fewer people will be thrown into financial hardship as a result of a family tragedy or other unforeseen event.
Employment Generation
An Increase in the penetration of insurance increase more employment opportunities. Insurance companies are continuously recruiting new employees and agents to sell their products. With a dynamic market and new roles emerging, professionals can keep looking for new opportunities.
Increase in Profits for the Insurance Company
A Company that is professional in its approach to selling Insurance is, therefore trusted by the public will find that it is able to sell more insurance. The spread of insurance to new customers grow, will increase the profitability of the insurance company.
Comments: 0
Post a Comment