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Home >> Insurance >>Insurance Benefits

Insurance Benefits


The basic idea behind opting for insurance to cover any risk is that such cover can protect the insured against losses that he may not be able to afford. When an individual purchases an insurance policy he effectively transfers his perceived risks on to his insurer, the insurance company, for a price called ‘Premium’. Primarily, this is the benefit that most people seek when they insure themselves or their property, but with the growth and evolution of the insurance industry many value additions are finding their way into risk management services.

The benefits that an individual can derive from an insurance policy depend on a number of factors.

Affordability

There are different types of insurance products that are on offer and a lot depends on what the individual can afford as cost of insurance. For instance an individual would have a wide choice of products offering different levels of benefits with different price tags. He has to opt for a product that will suit his priorities as well as his spending ability.

Situation

A lot depends on the situation that a prospective buyer of insurance finds himself in. For instance, he may be living in a particularly dangerous locality or he may be the owner of a particularly hazardous business like operation of oil tanker trucks. Under such circumstances the individual may perceive his risk at a level where he would not be averse to spending more on covering the risk than he would under normal circumstances. Hence, it is also likely that the individual is ready to stretch himself to ensure that he is entitled to the benefit of maximum risk cover in the event of damage to his property.

Service Provider Profile

Many a time the services offered by a certain insurance company are better or worse than a competitor and this fact is seriously considered by the prospective buyer of insurance. It is absolutely the buyer’s prerogative which insurance company he chooses to cover his risks and usually his perceptions about the benefits he may get by choosing a particular company influences his decision.

Some examples of the types of benefits provided by insurance products:

  • Group Medical, Dental, Disability and life Insurance
  • Supplemental Insurance
  • Retirement Programs
  • Flexible Spending Accounts
  • Educational Benefits

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