Category Archive Insurance

Basics of Insurance | What, How & Where to buy one?


What is Insurance?

It’s a contract between the consumer (Policy Holder) and the Insurer (Insurance Company), wherein Insurer guarantees your protection from the uncertain events like financial loss, damage, illness or death in return for payment of monthly, quarterly or annual premiums.

Types of Insurances:


Life Insurance:

  • Term Life Insurance: In this contract, the insurer pays assured amount to a designated beneficiary only in the event of death of the consumer (Policy Holder).

Positive Part of Term Insurance – Premiums payable for these policies are very low which makes it more affordable than others.

Negative Part of Term Insurance – If the consumer (Policy Holder) survives the period of the policy, then he/she will not get any money at the end of the policy as it doesn’t carry any cash value. Moreover the premiums on these policies increases with age as risk factors increases too, which makes it difficult to afford for an individual whose age is over 55-60.

  • Permanent Life Insurance:
  1. Endowment Policy – Endowment plans pay out the sum assured in both the scenarios – Death or Survival
  2. Money Back Policy – It’s a life insurance product as well as an investment plan which ensures periodic returns as a percentage of the sum assured along with life insurance cover against death.
  3. Annuity/ Pension Policy – All the premiums which are paid gets invested till the maturity date and then it comes back to you as a regular & guaranteed income after retirement.
  4. Unit Linked Insurance Plan (ULIP) – It is a variant of traditional endowment plan, they pay out the sum assured or the investment portfolio if it’s higher on death or maturity. As the name suggests ULIP is linked to markets. There are many similarities between ULIP and Mutual Funds, ULIP is a combination of Investment and Insurance whereas Mutual Funds is a pure Investment.
  5. Whole Life Policy – These policy has no pre-defined tenure so individual enjoys the life cover throughout his life by paying premiums until his death upon which corpus is paid out to the family.


General Insurance:


  1. Fire Insurance
  2. Marine Insurance
  3. Accident Insurance

Why Insurance is MUST?

Every individual on this planet wants to secure his/her family by giving luxury and better lifestyle. I am pretty sure they will be able to give it to them till the time he/she is alive however life is very unpredictable one event is more than enough to make or break someone, what will happen if the earning person of the family or anyone in the family gets sick or suffering from critical illness or is not alive to give that lifestyle or luxury to his/her family anymore. In order to secure his/her family and their dependents by ensuring that irrespective whatever will be the situation in the future their family will have the same lifestyle along with good amount of cash to fulfil their financial needs, one should buy Life as well as Health Insurance Policies. Insurance products such as Unit Linked Plans help us to combat the impact of inflation on our financial goals by providing the option to invest in equity, which is known to deliver one of the best returns from all asset classes, over the long term. Ignoring inflation would result in our savings falling short of the estimated value of future goals, especially over the long term.

Why people fear to buy Insurance?

People don’t fear to buy Insurance, they fear from buying a wrong product as thousands of mis-selling has happened in India. Who wouldn’t want to insure himself to secure his/her family and loved ones. Every individual would buy the insurance if someone pitched the right product to the right person according to consumer’s needs. Don’t just sell for the heck of it, sell it for consumer’s betterment, considering their requirement and affordability. Now the next common fear is on which insurance company should we trust? No insurance company has duped consumer’s money or has been closed due to such activities till date. Every Insurance company follows IRDAI norms under which they serve their consumers. So there is nothing to worry about it.

How to choose the best insurance policy?

We at Servengers India does complete financial planning of each and every customer that helps our them to identify the best products in the market to meet their specific financial need. If you want someone to manage your funds or wants to make Investments in any Insurance company then please feel free to mail us at or call us at +918080004200 as this is the place where you will get an opportunity to Compare & Buy along with the Post Sales Services for Lifetime with no additional cost.