Monthly Archives: April 2014

Importance Of Business Insurance

Entrepreneurs invest a wealth of resources into the start-up and continuous operation of a business. If the entrepreneur suffers any form of loss such as fire or burglary etc. the business may take a long time to recover. Insurance is therefore very important to the business community. The principle of indemnity ensures that an entrepreneur receives enough compensation to continue the business with minimum effects.

1
Running a small business means constantly weighing costs and benefits, but business insurance is an investment with benefits that far outweigh the costs. Even if your small business operates in a seemingly low-risk industry, the peace of mind that comes with a business insurance policy is well worth the expense.

Types of business insurance

Business Insurances can be of different forms.

General Liability Coverage

This is the most common type of business insurance. This type of insurance protects businesses against legal action associated with accidents and injuries.

Product Liability Coverage

This coverage provides protection from accidents and injuries arising from a faulty product.

Professional Liability Coverage

This policy is required when a business doesn’t manufacture or sell products. This insurance protects business that offer services – such as automotive repair facilities – from legal action associated with malpractice, negligence and errors.

Policy Covers

Catastrophic Loss

Business insurance protects a business from closing due to a catastrophic loss such as fires, floods, hurricanes, tornadoes and other natural calamities.

Liability 

If a customer slips and falls while on your business premises or your product has a defect that injures a customer and you do not have insurance, this could be disastrous to your business. Business liability insurance covers accidents that occur on the business premises, product defects and mishaps that occur during normal business operations on and off premises.

Theft

Replacement insurance protects a business in the event equipment is stolen, replacing the missing items and paying for repairs from damage caused by the invasion.

Personal Injury or Illness

Business owners should have personal insurance as well. Medical insurance will ensure medical bills incurred due to an illness or injury will not wipe out a business’s assets.

Benefits of business insurance

The most obvious benefit of business insurance is knowing that financial loss arising from liability and property damage will not lead to a business going under. There are other benefits as well.

2

Lenders and investors want to make sure their money is safe, and will likely be unwilling to do business with anyone who doesn’t have the right coverage. Additionally, any owners rely on transactions with other business will find that it’s much easier to conduct business when they are insured. Customers, clients and vendors want to work with businesses that will not be ruined by sudden damage or loss.

Many business owners feel business insurance is an expense they cannot afford, or is a luxury for more established businesses. Although it is true business insurance can be expensive, it is an expense every business, regardless of the industry, size or length of time in existence, needs to include in its budget.

Conclusion
Policy details mentioned are indicative. It is suggested that you read the policy documents carefully before signing on the dotted line.

 

Importance About Shopkeeper’s Insurance

Shop keeping is an economic activity, which is pursued with the goal of earning maximum profits within the limits of Government Rules & Regulations as well as social morales. Shops are sources of revenue for many in India. It not only provides income to the shopkeepers, but is also considered to be an asset. It’s very essential to secure this means of livelihood.

1

To ensure that one can focus on their shop and business, it is necessary that the shopkeeper’s mind should be free from other worries, which are not related to business such as accidents or other similar hassles, which could hamper the business activity in a drastic way. The shopkeeper insurance policy is designed to cover all the risks faced by small or medium-sized shop owners. It provides protection for the property and the interests of the insured in the business venture.

Shopkeeper Insurance Policy Covers

Shopkeeper Insurance policies covers many hazards like fire, house breaking, loss of money, personal accident and so on.

Fire

This insurance covers shops and its contents against loss or damage caused by fire or similar accidents like

2

  1. Fire, lightning, explosion of gas in domestic appliances
  2. Riot, strike, malicious damage, terrorist act
  3. Earthquake-Fire and/or shock, subsidence and landslide.
  4. Impact damage by rail/road vehicle not belonging to the insured.

Money Insurance

Loss of money or valuables while it is contained in a locked safe by burglary is also insured by this policy.

1

Neon Sign/Glow Sign

The policy covers loss of or damage to neon sign/ glow sign by

  1. Accidental external means
  2. Fire, lightning or external explosion or theft.
  3. Riot, strike, malicious or terrorist act

Burglary & Housebreaking

Insured is protected against loss or damage by burglary or housebreaking.

Personal Accident

Covers insured and spouse and/or his children, named in the policy against bodily injury caused solely and directly by accident and resulting in death or permanent total or partial disablement or temporary total disablement.

Electrical and Mechanical Appliances

The policy covers the loss or damage of insured appliances.

Exclusions

There are certain exclusions from this policy. Some of them are: Theft from unattended vehicle, loss due to robbery, theft, fraud, dishonesty or conspiracy by any of the employees or agents, damage due to wear and tear, erosion, corrosion, or any other gradual deterioration due to atmospheric conditions, nuclear activity, pollution and so on.

Conclusion

Policy details mentioned are indicative. It is suggested that you read the policy documents carefully before signing on the dotted line.

 

Importance Of Child Insurance

Becoming a parent is one of the most special moments in one’s lifetime, but along with the happiness and pride, comes the responsibility of bringing the child up in his best behaviour and ensuring that his/her future is secured.

1

 

The biggest commitment of a parent is perhaps being able to provide the child with the best possible education. Hence, parents should start planning as soon as possible, so that no compromise needs to be made where it concerns the child’s intellectual future. Child Insurance is a necessity and there are several advantages attached with the various insurance plans that are available in the market.

Are these child insurance policies worth the money?

There are various savings policy types available which provide the nominee with the actual amount insured for him/her once he/she attains a maturity age of 18 or 21years depending on the policy that have been chosen etc. Additionally, the insurance company also puts the premium amount into the same plan on behalf of the policyholder. One should opt for term policy, which will depend on the income of either of the child’s parents. Most parents start planning for their children over 10-20 years before their milestone years. Life insurance policies for children are more affordable than any other life insurance policy. The parents are the investors, while the final beneficiary is the child when he/she grows up. In case the parent dies, a lump sum amount is given to the family but the child insurance plan doesn’t cease to exist. It acts as a corpus that remains intact till its exact maturity date. Additionally, the returns on insurance policies for children are tax-free and can save you a lot.

Conclusion:

2

Nowadays, every Indian insurance company has a child life insurance plan. However, differences in the conditions still exist between plans and it is necessary to do your part of research for seeking out the best investment for you before signing on the dotted lines. Calculation done by a professional will give better results as it involves several factors like future market conditions, educational expenses, emergencies, etc. So, planning ahead in advance is your only option. Most of these child insurance plans aim to meet your financial needs. These insurance plans provide you with funds at pre-fixed intervals, which will help to meet your child’s financial needs at different milestone years. Now that you know the different aspects of child insurance and its importance, grab the perfect one for your child.

Myths About Life Insurance Policies

Living in the moment might be a very good approach to life, but it doesn’t work in the world of financial planning, future securing and insurance. Life insurance is not a simple thing. There are many elements that must be considered carefully even in term life policies, in order to achieve the proper type of coverage. There are a lot of misconceptions associated with Insurance. Insurance is mostly viewed as a tax saving tool and hence enough cover is not taken to cover you and your family under necessary circumstances.
This article will help you briefly examine the most popular myths surrounding life insurance and the realities that they distort and present.

Myth 1- I’m Single and Don’t Have Any Family or other Dependents, so I Don’t Need Coverage:

1

Single persons definitely need life insurance at the very least to cover the costs of personal debts and medical bills. If you are uninsured, you may leave a legacy of unpaid expenses for your executor to deal with. You most certainly need a policy to take care of your retirement worries as well. Plus, this can also be a good way for singles to leave a legacy to a favorite charity or other cause.

Myth 2- Insurance will only benefit after my death:

Insurance policies provide protection to you and your family. One of the main objectives of taking insurance is to provide financial coverage to your family in case you are not around but this is not the only objective. Insurance also helps you to build a protection for yourself by providing you with a comfortable retired life and taking care of your lengthy medical bills.

Myth 3- I’m young and healthy hence, I don’t need life insurance:

3

No-one really knows what’s just around the corner — accidents and illness do happen. If you wait until you are old or get sick before thinking about life insurance, it is likely to cost you much more and be extremely harder to obtain. Generally, once you have your life insurance policy, you can keep on renewing it by providing premiums on time. This is regardless of changes to your health or occupation.

Myth 4- Only breadwinners need life insurance coverage:

Your stay-at-home partner may not earn an income, but think of everything that he or she does to keep the household running. The cost of replacing the services formerly provided by a deceased homemaker can be much higher than you think, and insuring against that monetary loss makes sense. Life insurance can square the cost of hiring help or changing jobs to accommodate a new lifestyle in your partner’s absence.

Myth 5- Term life insurance is always the right fit:

2

Term policies usually last for a certain period of time, so if you don’t renew your policy after that period, it does not exist anymore. Term life insurance often gets more expensive as time goes on, while in Universal life insurance you always have to pay the same premium, and is considered to be one investment in life that is guaranteed to pay off.

The Bottom Line:

These are some of the most prevalent misunderstandings and myths concerning life insurance that the public faces today. The most important thing for you to understand is that you should never leave life insurance out of your budget unless you have enough assets to cover expenses in your absence. For further details and information, you should consult your life insurance agent or financial adviser.