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Life
is full of uncertainty. Trials
and tribulations abound in each
and every aspect of life. No
one can truly predict or even
estimate what the future has
in store for him. Life offers
no guarantees by itself, except
the incidences of death and
taxation.
This
lack of security present throughout
life can be overcome partially
through insurance. Insurance
can never replace or repair
a loss. But the monetary value
offered by insurance helps in
adjusting to the new circumstances.
Despite
offering innumerable options
and immense scope, insurance
can be classified into four
main categories.
Insurance
of Person:
Under
the purview of this class of
insurance, the risks associated
with human life in general can
be covered up to the limit specified.
A person can insure his or her
life and his health against
any unplanned contingencies.
In
event of his death, his dependants
will be reimbursed to the full
amount that he was insured for.
Or if the insured person meets
with an accident or suffers
from an illness that cripples
him forever, he will be compensated
with the complete sum assured
anyway since he may not be able
to lead a normal life again.
In
case, the accident is not that
severe, he should be able to
recover after medical treatment
and rehabilitation. If he has
opted for medical cover, then
his medical expenses, treatment
and medication will be paid
for by his insurance policy.
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Insurance
of Property:
Everyone
possesses material value in
the form of tangible assets.
Assets can be in the form of
a landed estate or a vehicle,
share holdings or plain old
paper money.
Since
tangible property has a physical
shape and consistency, it is
subject to many risks ranging
from fire, allied perils to
theft and robbery. An individual's
lifetime of hard work can be
wiped out in a blink of an eye.
But
if a person judiciously invests
in insurance for his property
prior to any unexpected contingency
then he will be suitably compensated
for his loss as soon as the
extent of damage is ascertained.
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Insurance
of Interest:
Every
individual has to discharge
certain specific duties. Everyone
is expected to maintain a standard
of conduct. But then, it is
an intrinsic part of human nature
to err. No one is infallible
and no one will ever be.
Owing
to an occasional error or omission
committed by us, our clients
or customers might suffer a
loss. In turn we might have
to pay them damages or compensation
out of our own personal resources.
However,
if our chosen profession qualifies
for insurance of interest, then
our insurance policy will more
than suffice in arranging for
the funds and court formalities
that might ensue in the aftermath
of legal libel.
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Insurance
of Liability:
Every
person has to regulate his actions
and behaviour so as not to cause
injury or damage to other people
and their property. Everyone
is personally responsible and
liable for his actions.
If
due to lack of control over
his actions or prejudiced behaviour,
a person incurs any liability
then he has to provide compensation
out of his personal resources.
Liabilities: legal, civil or
criminal can have severe repercussions
on social standing and prestige
besides the financial status.
By
investing in liability insurance,
an individual can ward off any
liabilities he might incur due
to his actions and behaviour.
Besides, the premiums payable
on liability insurance are fairly
minimal when compared to the
damages that have to be compensated
in the long run.
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