Insurance in a Nutshell!
Insurance is taken in form of a contract or policy by agreement of the person and insurance company who reimburse losses when a financial loss occurs in exchange for a yearly, or monthly, or quarterly premium to the company. The purpose of insurance is to have cushioning for yourself and your family against sudden losses. There can be various types of tragedies or sudden losses against which insurances are taken. Due to the above reasons, it might now be clear why it is categorized under financial planning. Every person can have a customized plan per their needs and depending on their risks. In today’s time insurance is a very necessary protection towards assets and services. Insurance has come a long way from only being provided in certain categories like life, medical and auto insurance. There is an avid range of assets and services which can be insured to ensure protection. Business are being insured from various liabilities in recent times. Public liability is also an insurance which is being customized for various professionals who work with the public. Employer liability insurance is also an opted insurance for various multinational corporations for their employees. For knowledge about more such kinds of insurances and finding a personal quote for yourself, you can visit tradesmansaver.co.uk .
Benefits of Insurance!
Taking an insurance policy can be advantageous in more than one way. Here are a few benefits:
- Financial security: This is the first benefit of having an insurance policy. You will have a financial security in the time of need and do not have to worry about arranging a major sum of money at once without any prior notice.
- Tax Benefit: There are tax benefits to taking an insurance policy. The premium gets deducted from the tax payable under specified sections of the Income Tax Act. It is a profit for the individual as these policies are tax free.
- Investment: In case the policy is not being used and matures, you can get a lumpsum amount with interest. It can be serve as a good investment.
- Customizable Plans: The policies can be customized according to the risk involved and as per requirement of each individual, so everyone can make a policy best for themselves and their assets. For more plans, you can check out co.uk.
- Retirement Planning: You might not have a stable source of income after you retire but that can be avoided if you invest in an insurance policy. After the policy matures, you can reap profits all through your retirement.
- Getting Loans: If you need a loan, it is easier to get loans while you have insurance on your assets as it is a very secure collateral for the banks.
- Liquidity: The amount paid as premium can be withdrawn at any point in case of unforeseen circumstances or emergencies and this liquid nature of insurance can be advantageous to individuals.