Education News 8 January 2022
Having the right kind of insurance is central to sound financial planning. Some of us may have some form of insurance but very few really understand what it is or why one must have it. For most Indians insurance is a form of investment or a superb tax saving avenue. Ask an average person about his/her investments and they will proudly mention an insurance product as part of their core investments. Of the approximately 5% of Indians that are insured the proportion of those adequately insured is much lower. Very few of the insured view insurance as purely that. There is perhaps no other financial product that has witnessed such rampant mis-selling at the hands of agents who are over enthusiastic in selling products linking insurance to investment earning them fat commissions.
What is Insurance?
Insurance is a way of spreading out significant financial risk of a person or business entity to a large group of individuals or business entities in the occurrence of an unfortunate event that is predefined. The cost of being insured is the monthly or annual compensation paid to the insurance company. In the purest form of insurance if the predefined event does not occur until the period specified the money paid as compensation is not retrieved. Insurance is effectively a means of spreading risk among a pool of people who are insured and lighten their financial burden in the event of a shock.
Insured and Insurer
When you seek protection against financial risk and make a contract with an insurance provider you become the insured and the insurance company becomes your insurer.
Sum assured
In Life Insurance this is the amount of money the insurer promises to pay when the insured dies before the predefined time. This does not include bonuses added in case of non-term insurance. In non-life insurance this guaranteed amount may be called as Insurance Cover.
Premium
For the protection against financial risk an insurer provides, the insured must pay compensation. This is known as premium. They may be paid annually, quarterly, monthly or as decided in the contract. Total amount of premiums paid is several times lesser than the insurance cover or it wouldn't make much sense to seek insurance at all. Factors that determine premium are the cover, number of years for which insurance is sought, age of the insured (individual, vehicle, etc), to name a few.
Nominee
The beneficiary who is specified by the insured to receive the sum assured and other benefits, if any is the nominee. In case of life insurance it must be another person apart from the insured.
Policy Term
The number of years you want protection for is the term of policy. Term is decided by the insured at the time of purchasing the insurance policy.
Rider
Certain insurance policies may offer additional features as add-ons apart from the actual cover. These can be availed by paying extra premiums. If those features were to be bought separately they would be more expensive. For instance you could add on a personal accident rider with your life insurance.
Surrender Value and Paid-up Value
If you want to exit a policy before its term ends you can discontinue it and take back your money. The amount the insurer will pay you in this instance is called the surrender value. The policy ceases to exist. Instead if you just stop paying the premiums mid way but do not withdraw money the amount is called as paid-up. At the term's end the insurer pays you in proportion of the paid-up value.
કોરોના ની ત્રીજી લહેર બાબતના સમાચાર વાંચો
The decision was taken at a meeting of the core committee chaired by Deputy Chief Minister Nitin Bhai Bhai Patel, Energy Minister Saurabh Bhai Patel, Chief Secretary Anil Mukim and senior secretaries chaired by Chief Minister Vijaybhai Rupani.
ઓમીક્રોન નું પહેલું લક્ષણ આ છે જરૂર વાંચો
The decision was taken at a meeting of the core committee chaired by Deputy Chief Minister Nitin Bhai Bhai Patel, Energy Minister Saurabh Bhai Patel, Chief Secretary Anil Mukim and senior secretaries chaired by Chief Minister Vijaybhai Rupani.
ઓમીકોર્ન ના લક્ષણો જોવા માટે અહીં ક્લિક કરો
The decision was taken at a meeting of the core committee chaired by Deputy Chief Minister Nitin Bhai Bhai Patel, Energy Minister Saurabh Bhai Patel, Chief Secretary Anil Mukim and senior secretaries chaired by Chief Minister Vijaybhai Rupani.
કોરોના સર્ટીફીકેટ વોટ્સએપ માંથી ડાયરેક્ટ ડાઉનલોડ કરવા અહી ક્લિક કરો
The decision was taken at a meeting of the core committee chaired by Deputy Chief Minister Nitin Bhai Bhai Patel, Energy Minister Saurabh Bhai Patel, Chief Secretary Anil Mukim and senior secretaries chaired by Chief Minister Vijaybhai Rupani.
કોરોના ત્રીજી લહેર બાબતનાં સમાચાર
- The families of Koro’s victims will receive financial help
- સર્ટીફીકેટ માટે અહી ક્લિક કરો
- ગુજરાતીમાં સમાચાર વાંચો અહીંથી
The decision was taken at a meeting of the core committee chaired by Deputy Chief Minister Nitin Bhai Bhai Patel, Energy Minister Saurabh Bhai Patel, Chief Secretary Anil Mukim and senior secretaries chaired by Chief Minister Vijaybhai Rupani.
The state government has decided to set up this system in Gujarat as well following the guidelines given by the Government of India to the states to cover all teachers under Corona Vaccine Safety Cover by September 5th, Teachers’ Day.
Two World Health Organization scientists are monitoring a new variant of the Corona called the Mu, first identified in January 2021 in Colombia. This variant is scientifically known as B.1.621.A WHO bulletin released on Tuesday states that the two variants of the Corona are currently making waves around the world. Both of these variants are much more deadly than the original strain of the corona.
The WHO said the variant has mutations that have the potential to neutralize the vaccine. The World Health Organization stressed that more research is needed to better understand it. The Mu variant has a constellation of mutations that can beat the vaccine. Scientists say the first wave came against the C.1 variant of the Corona. Compared to that, this C.1.2 variant is more lethal and has undergone many changes. So for this reason this variant is currently considered the most deadly.
Failed against this variant on the vaccine. The C.1.2 variant has the highest mutations ever compared to the Corona variant. Scientists claim that this variant may prove to be the most metallic variant ever for humans. Because even the vaccine is not effective on it.Mutation rate 41.8 per cent per annum
પ્રાથમિક શાળાઓમાં પરિક્ષા બાબતના સમાચાર
સ્કુલ બંધ કરી પરિક્ષા મૌકુફ રાખવા બાબતના સમાચાર વાંચો
શું કર્મચારીનું DA જુલાઈ ૨૦૨૨ સુધી નહિ વધે? જાણો સત્ય શું છે?
ન્યુઝ વાંચવા માટે અહી ક્લિક કરો
ગુજરાતીમાં ન્યુઝ વાંચવા અહીં ક્લિક કરો
પંચાયત કર્મચારીઓ ના જિલ્લા ફેર બદલી નો પરિપત્ર જોવા માટે અહીં ક્લિક કર
Read More Education News & Corona Updates
We Now that you know the terms this is how insurance works in plain words. An insurance company pools premiums from a large group of people who want to insure against a certain kind of loss. With the help of its actuaries the company comes up with statistical analysis of the probability of actual loss happening in a certain number of people and fixes premiums taking into account other factors as mentioned earlier. It works on the fact that not all insured will suffer loss at the same time and many may not suffer the loss at all within the time of contract.