What is insurance, and why is it needed?
Insurance – questions;- Insurance is a contract. It is a legal agreement between the two parties. One party agrees to guarantee that the other party will pay compensation—the other party bound by the contract to ensure paying a premium at a fixed payment rate.
An insured agreed between the first party insurer and the second party to guarantee compensation and premium payment. In life insurance, the loss does not compensate; it can quantify no value in human life. So in the case of life insurance, financial security is provided.
The insurance industry plays a significant role in the economic development of any country. Insurance helps in raising capital by collecting small savings (premiums) from the public. Guarantees compensation for human life, debts, and property. With such assurances, people can feel safe in their workplace and concentrate on their work.
As a result, individual production increases. Thus, when individual production increases, national production increases. Increasing production improves the living standards of the people and leads to the country’s economic prosperity as a whole.
Example: life insurance contract, fire insurance contract.
What are the steps to insure?
The steps to insure are:
✅ The insurance company’s sales representative or the web site should be informed about the customer’s different plans and review the other projects: choosing the choice plan.
✅ To apply in the insurance company’s prescribed form to take the insurance customer’s plan of choice.
✅ The Contract partners pay the FPR after the insurance buyer pays the premium. Through this, the final. Performance regarding insurance.
What are the benefits of insurance?
Benefits of insurance:
▶ It provides the security of life and property.
▶ It gives peace of mind.
▶ It finances the business.
▶ It reduces inflation.
▶ It generates capital.
▶ It is a source of old age and emergency.
▶ It provides for the security of social property.
What is an insurance premium?
The insurance premium is the return of the promise of compensation or claim payment to the insured in the insurance contract. In the case of life insurance, the policyholder pays the premium to the insurer/insurance company.
The insurance company pays the insurance claim in case of the insured’s death on or before the term’s expiry. The definition of premium in the analysis of different perspectives of experts is as follows:
“An insurance contract is a policy to reduce or compensate for any possible uncertainty or risky financial loss on the life or property of the insured in the future or to the insured at a fixed rate or for a specified period no time. The one-time payment is called an insurance premium.”In the case of life insurance, the premium regular collected in annual installments. However, half-monthly, quarterly, and even monthly tips are available for the convenience of the insured.
How is the premium rate determined?
The actual will determine the insurance premium as per the Insurance Act, 2010. The factors on which the tip determine are insurance amount, the term of insurance, age of the insured, office cost, mortality table, commission cost, etc.
What is the total insurance amount?
The subject of life insurance is human life. It is not possible to determine the value of life. Therefore, in life insurance, the sum insured is the sum assured of the insured’s financial benefits in exchange for a certain premium amount.
What is an insurance plan?
The insurance company will take certain risks in return for an individual premium between the insured and the insured. What benefits will be provided to the insured customer, what services will not offer, what matters will not be at risk, various terms, etc. , The scheme is called an insurance plan.
Example: term plan, temporary plan.
What is a profit / non-profit / term plan?
✔ Good plan:
In the case of a life insurance policy, the insured pays the insured at the end of the term.
Dividends or bonuses dose rewarded; it is called an acceptable insurance policy or a good plan.
✔ Non-Profit Plan:
In the case of a life insurance policy, the policyholder only insures at the end of the term.
He does calls a non-profit insurance policy or a non-profit plan or a plan without a bonus if he gets.
The premium rate of such insurance plans is meager.
✔ Term Plan:
In such an insurance plan, the sum insured is paid only on the death of the insured during the term insurance contract;
if the insured survives till the end of the period, he does not get any financial benefit. This type of insurance plan has a low premium rate.
What is an insurance contract?
An insurance contract is an agreement executed between the insured and the insurer to transfer potential risks to human life or property. In the insurance contract, the policyholder transfers the chance to install installments or premiums for a specified period.
The insurer takes the risk for a specified period by accepting the premium. Suppose the insured’s property dose is damaged due to a potential accident or at the end of life or the end of the life insurance term. In that case, the insurance contract is an agreement to pay the insured or his nominee the insurer’s amount determined.
What is an insurance offer?
To take out insurance, the policyholder makes a written application to the insurer. Usually;
Insurance does offer on the printed paper prescribed by the insurance company.
Where Insurer’s Name, Father’s Name, Mother’s Name, Profession Details, Date of Birth, Permanent Address, Current Address, List of Insurance and Term, Insurance Number, Amount of Premium, Premium Payment Method, Income and Source of Income Nominee Name, Age, Relationship, Customer Signature, date of application, the signature of signature, etc. are recorded.
What are the issues to be verified by the insurance customer?
The insurance customer usually has to verify the following: –
⏩ Information in the proposal form dose recorded correctly and accurately.
⏩ The financial capacity of the insurance company is sufficient.
⏩ The information does appropriately recorded in the insurance deed.
⏩ The sales representative of the insurance company has a proper appointment letter.
What information and documents does the insurer have to provide to make an insurance contract?
The information and documents that the insurance customer has to provide to enter into an insurance contract are: –
✔ The details of the name and address of the insurance customer have to be submitted.
✔ The details of the insurance customer’s profession are to submit proof of the particular customer’s work.
✔ The details of the insurance customer’s income are to dose submitted in the field of extraordinary income proof.
✔ The professional address of the insurance customer has to be submitted.
✔ The insured has to submit proof of age.
✔ A passport size photograph of the insurance customer and nominee has to be submitted.
✔ Medical / non-medical report has to dose submitted as proof of good health.
✔ A large amount of insurance/age, urine test report, ECG report, X-ray report, and different blood test reports have to be submitted.
Persons working abroad have to submit the attested photocopy of the passport and sealed passport page of the latest arrival in Bangladesh.
When does the insurer pay a bonus to the customer along with the insurance claim?
If the insurance company has more funds than the insurance company’s actual liability, then the excess is called a surplus.
From the rest received at the end of the actuary’s valuation process, the insurance company distributes the insurance customers in the form of a bonus along with the insurance claim.
However, dividends are paid only for profitable insurance plans. Besides, the declared premium dose produced along with the paid the price.
I hope you have got a lot of ideas about Insurance questions from this information. However, no guarantee is a gift regarding the accuracy of the story. Please verify the scheme information document before making any investment.