Significance of Insurance in Today’s Society

Significance of Insurance in Today’s Society

Insurance policies are a tool that play a vital role in modern society. It ensures financial stability and security for the policyholders. The POSP agents help the policyholder manage risk. They further play a crucial role in economic growth. In addition, the risk involved in business operations is also covered by insurance policies. The insurance buyer must understand the significance of insurance and POS agents to buy the insurance products.

To benefits of buying an insurance policy

Offers Safety and Security

The POS agent offers insurance policies which provide financial assistance to individuals. It also reduces the chances or uncertainties that a policyholder may face in the absence of any insurance policies. The insurance policies include the risk mitigation mechanism which indemnifies the policyholder against any uncertain events. The insurance policies provided by the POSP agent offer safety and security against any potential risk which may distress the policyholder.

Let us discuss an example in order to understand how insurance policies offer safety and security to the policyholders.

One may notice that the medical inflation in India grows 15 to 20 percent every year. Therefore, one accident may disturb the financial budget of the breadwinner of a family. However, if the family subscribes to a health insurance policy, the insurance company shall bear all the costs as per the terms and conditions of the policy. This will save the cost of policyholders in future. By paying a minimal premium, the policyholder may save a significant amount.

Generates Financial Resources

The POSP agent generates long-term financial resources by selling insurance policies. The funds in the form of premiums are invested in building infrastructure assets for the nation. Such assets include power plants, roads, ports, dams etc. These assets are significant for the growth of the nation. In addition, it further generates employment opportunities which leads to formation of a stronger economy.

Growth of Economy

The insurance sector plays a vital role in mobilizing domestic savings. This makes a considerable impact on the economy of a nation. The income accumulated by the insurance company via POS agent in the form of premium is invested productively.

In addition, the insurance ensures the mitigation of risks, loss and damages. It maintains financial stability and fosters commercial activities in a nation. Insurance also leads to sustainable growth and development. Therefore, insurance plays a crucial role in the growth of the economy.

Risk Management

The insurance through POS agent offers the mechanism to mitigate and transfer potential risks associated with the policyholders. Insurance serves as a critical tool for policyholders. It identifies the risk and assesses and addresses the same to the society.

Identification and Management of Risk

The insurance POS advisor plays a crucial role in assisting the policyholder in identifying the types and nature of risks. It helps them understand the nature of potential risks which they may face in their profession. In addition, the PoSP insurance agent evaluates the specific vulnerabilities by considering their profession, business, asset and geographical location. By conducting thorough research and profiling the risks, the insurance providers help the policyholders to make a wise decision in order to avail of the coverage of potential vulnerabilities.

Risk Transfer

The insurance policy serves as an effective mechanism in order to transfer the potential risk of the policyholder to the insurance company. The policyholders, by paying the premium, delegate the responsibilities of losses and damages directly to the policyholder. The insurance company thereby shall be responsible for covering the insured against any loss they face during the tenure of the insurance policy. The policyholder via the risk transfer mechanism may protect their asset, investment and livelihood. They can be assured of having financial resources to cover unexpected events or setbacks.

Management of Catastrophic Risk

The insurance policies also focus on catastrophic risks which include natural disasters. This offers critical support in high-risk areas.

Types of Insurance Policies

The POSP agent offers a variety of insurance policies in order to mitigate the risks. An individual may avail of life insurance, health insurance, property insurance, liability insurance, and many more.

Let us discuss the types of insurance policies in detail in order to understand the significance of insurance in today’s society.

Life Insurance

A life insurance policy is a fundamental form of insurance. It offers financial protection to the dependents of policyholders. This insurance serves the beneficiaries in case of the demise of the policyholder. The life insurance policy ensures the financial security and well-being of the beneficiaries of the policy. It also enables the beneficiaries in order to cope with the loss of income and financial obligations. The life insurance policy is offered in various forms. This includes term life insurance, whole life insurance, group life insurance, critical illness insurance, Unit-Linked insurance plans, universal life insurance, and many more.

Health Insurance

Health insurance is offered by the insurance companies and POSP agents in order to cover the medical expenses of the policyholders. It offers financial protection to the policyholder and the family against health care services which includes hospitalisation and treatments. The health insurance policy is designed to ensure quick access to quality healthcare services. It does not impose any financial strain on the individuals. The health insurance policy includes hospitalisation, prescription drugs, specialized treatments etc.

Property Insurance

The insurance and POSP agent play a vital role in protecting the policyholder in case of any financial losses arising from damages or destruction of physical assets. This includes homes, personal belongings, and commercial properties. The property insurance covers a wide range of perils. This includes fire, natural disasters, vandalism thefts. This provides the policyholder with a means to replace or repair the damaged property.

Conclusion

Insurance policies and POSP agents contribute to financial stability by safeguarding individuals, businesses, and governments from the adverse effects of unforeseen losses and liabilities.

Join PBPartners as an insurance agent, one of the best PoS insurance company.

FAQs

Q. Are there any tax benefits available on insurance?

A. Yes, a policyholder may avail of tax benefits upon buying an insurance policy.

  • On a life insurance policy, the premium paid by the policyholder can be deducted up to INR 1.5 lakh from the taxable income. This deduction can be made under section 80C of the Income Tax Act.
  • Premiums up to INR 25,000 can be deducted from the taxable income in medical health insurance. Another INR 25,000 in the same category is deductible for the premium paid by the policyholder for the parents. Such deductions can be made under section 80D of the Income Tax Act.
  • The policyholder can make the aforementioned claim while filing income tax returns.
Q. How to become a POSP agent?

A. One may become a POSP agent by following the below-mentioned steps.

  • Account Creation

The individual should create an account on the website of the insurance company. One may find many companies providing insurance products. The individual may visit any one of the sites and create an account.

  • KYC Verification

In this step, the individual must enter the PAN card details and other requirements for the validation.

  • Online Training

The individual must complete the online training in order to proceed with the certification process. Upon completion of training, the individual shall become the POS agent.

It is important to note that some insurance companies seek written examination. Hence, the individual is required to appear in the exam conducted by the insurance companies in order to become the POS agent.

Read more: How to become a PoSP Insurance Agent

Q. Who can become an insurance POSP advisor?

A. The following people can become a POSP agent.

  • Businessman

A business owning small or large-scale businesses can become a POSP insurance agent for the growth of the business.

  • College Student

A college student can also become a POSP insurance agent in order to earn a stable income.

  • Retired Employee

A retired employee can also become the POSP insurance agent by selling the insurance products.

  • Homemaker

A homemaker fulfilling eligibility criteria may also become a POSP insurance agent.

Q. What are the types of insurance policies offered by POSP insurance agents?

A. Here are the types of insurance policies offered by the POSP insurance agent.

  • Life Insurance
  • Health Insurance
  • Property Insurance
  • Liability Insurance
  • Automobile Insurance
  • Business Insurance

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