The misconceptions about life insurance

Life insurance is a contract by which one party to a contract to provide a certain amount of the premium and the premium paid by the insured pay compensatory loss of life or death. Considering the needs of different types of companies policy owners services. policy owners reserves the right to receive services under the contract. It is the responsibility of insurance companies, service contract in accordance with the recipient give.

Life insurance is not a mere commodity. A lot of misconceptions about life insurance to be born among the general public can be seen, for example-

1. I do not need to purchase life insurance policy: it is not true. The truth of life is death. Man to earn the whole family, the family of the premature death of one man is afflicted with uncertainty, wants to stop the wheel of life. A lot of money, child education, medical treatment, the marriage ceremony of the crisis was difficult daily life. Life insurance in case one or more manonitaka bimagrahita was appointed, when he died in a specified period in order to address the manonitakake default insurance. So, if a person buys life insurance forms to fill shortages are not possible, but it is possible to overcome the financial problem to some extent.

2. Insurance companies may receive less than the bank: money can not buy insurance policies as FDR or any other bank, if the bank deposit certain amount of money and the borrower or his manonitakake sudasameta accounting returns. But life does not take any risks. Always compare life insurance policy with the bank's profit is not correct. The purpose of the two separate. Just deposit money banks in custody, while the life insurance company is the recipient of financial risk-related issues.

3. Waste of money involved in the purchase of life insurance policy: an investment in the purchase of life insurance policy. On no account does not waste money. Bimagrahita buy insurance policy from the company in demand. The recipient of the insurance claim can satisfy short-term financial problems, developmental and economic work and family can keep yourself from anxiety.

4. My insurance policy does not require so many resources: abundant resources creates a lot of responsibility. We need to show that, compared to total assets total liabilities (current liabilities and long term liabilities) is not less than. If it is greater than total liabilities, then purchase additional liability insurance policy equivalent to the shortfall. A life insurance policy is a long-term investment. A portion of the profits earned from the investment can be measured in money terms, the other part is not measurable.

5. Her life insurance policy is not required: jibanamatrai risk. Or existing ones may be at risk in the future may come. The future is unknown. So the lonely life insurance policy should be purchased.

6. My organization has a policy for the group: a lot of officers and employees of the employer for group insurance arrangements, where officers and employees of the insured's life, though, life insurance and other family members can be from the outside. As members of the family has contributed to our growth, as is our duty to them. So his life is at risk, and risk-free life, but family members will not be peace.

7. I have a policy, so they do not need to: the value of life can not be accurately assessed in money terms. There are no specific restrictions on the purchase of life insurance policies. According to the ability of his wealth as much as you can purchase life insurance policy.

8. Insurance policy does not require much sums: How much insurance a person needs to address the socio-economic conditions, depending on the person. Physicians, liability to pay child maintenance, etc. to meet the appropriate needs to be funded.

9. We will invest in the purchase of life insurance policy elsewhere: the risks of the investment. The only life insurance policy to reduce the risk / control acts as an intermediary. The life insurance policy purchase tax credit is available to a certain extent.

10. Insurance may not be the nominee of my absence: the insurance business is conducted based on a policy. Parties are required to adhere to all the principles associated with the insurance agreement. Insurable interest in insurance is an important principle. There is no insurable interest in the life of the insured is not possible. For example, people insurable interest in his own life. Insurable interest in the lives of both husband and wife. However, no insurable interest in the lives of creditors of the debtor does not carry. Insurable interest in the absence of any other information is correct bimagrahitara nominee does not prevent insurance claim to get money.

Much more than the above examples idea / comment may contain. Insurance systems are playing a vital role in the reduction of risks in the world. It is like a merger. One danger which contributes to reduce the risk of other members. Insurance does not, therefore, afford to neglect and other family members in accordance with a minimum purchase policy to reduce financial risk as possible, so it is a good investment. Shows encouraging people to purchase life insurance policy, it is to sell. The sold almost all of the life insurance policy is sold through insurance agents. Insurance companies by providing training to their agents will be trained in such a way that they can understand and in accordance with the needs of policy holders can sell it.