LIFE INSURNACE IS A FORM OF A SINKING FUND THAT PAYS YOU A HUGE AMOUNT AT END

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Insurance industry is getting recognition all over the world. The idea behind insurance was initially not well recognized but as it started to create good worth for the humans, it started getting refined. The phase or shape the insurance contract is now in shows that almost all people are connected with any insurance company in one way or another. This is a nice sign that people are getting linked to insurance companies all over the world. In Islamic countries a form of Islamic insurance has also been introduced. This Islamic form of insurance is claimed by Islamic experts to be in compliance with the commandments and guidance of the religion Islam. The insurance industry operates under a simple idea that was to collect money from many people and then invest it in profitable ventures that provide good returns and paying the claims that are arisen. The number of claims is usually smaller or lower as compared to the number of policies issued.

Wide range of Motor Insurance Plans is available for individuals and corporate clients. The insurance for motor cars is dependent upon the model of the car. The brand news cars are now insured under the norm that insurance should take place at the time the car is brought to the showroom and is offered for sale. So new cars are now mostly insured because it is better and risk free option. Insurance provides peace of mind to the car owners to roam anywhere in the world.

Having Life Insurance is very important for the sake of having good life ahead for your dependents. Under life insurance a nominal premium amount is paid every month by the policy holder. Under the life insurance the payment is made continuously and the claim is then made at the time of expiry of the policy holder. This was the idea of insurance that the dependents get good sum of money after the family leader is expired or deceased. However, the idea did not get good attention from the people in the east. The idea was welcomed by people in the west though. The insurance of life is a slight different from other insurance types like motor insurance, assets insurance and health insurance. In life insurance the claim is bound to be made but the claim is in many cases made after many years. However, in other form of insurance claim is only made if any damage or loss in incurred which means that in many cases no claim is made by the policy holder. If a car runs for the whole period of insurance without any damage then there is no point in making claim so the whole premium amount is like a gain for the company. But an insurance company is running hundreds and thousands of insurance policies under one time and if a particular insurance policy holder does not make any claim then it does not mean that all policy holders won’t make any claim. There would be claims of car thefts that require the insurance companies to pay huge sums of money.

SUMMARY:

This is a nice sign that people are getting linked to insurance companies all over the world. In Islamic countries a form of Islamic insurance has also been introduced. So new cars are now mostly insured because it is better and risk free option. However, the idea did not get good attention from the people in the east. The idea was welcomed by people in the west though. This was the idea of insurance that the dependents get good sum of money after the family leader is expired or deceased.