Insurance

The concept of insurance is not new, a form of insurance existed even in early Rome and Greece. The Greeks and roman introduced the origin of health and life insurance 600 AD when they organize guild called benevolent societies which cared for the families and paid funeral expenses of members upon death. People also realized the need of insurance in the ancient period for different purpose in Rome and Greece. Life insurance made its debut in India well over 100 years ago. Today it is widely accepted as one of the most attractive financial instruments in the individuals’ portfolio, which provides an assurance of securities with attractive returns. Insurance is a good savings option for the long term. The need of savings is necessitated by number of factors, which range from uncertainty like a child’s higher education or wedding, post retirement needs, and so forth. Insurance is fundamentally is a risk transfer tool. The insurer provides a cover to the policyholder against various risks among which life occupies a very important place. Unlike the other form insurance, life insurance is very tricky as it covers a host of complexities. Life insurance offers financial stability and protection to the policyholder. The insurer undertakes to pay the sum assured in survival or death of policyholder. Still now a lot of people are not protected with any insurance plan. This is the greater opportunity for the insurance company management to tap the untapped market. Life Insurance is truly a social profit and it symbolizes socialism at its bet. Both the rich and the poor pay the same premium and provide a mutual form of cover to each other for millions of people who do not earn regular income for families that depend on the irregular wages or incomes of a single bread winner. Life insurance is a potent way to provide economic protection and family welfare. Investment in life insurance and product is risk free and secured investment, as it is government body. People save regularly to build a corpus for their daughter’s wedding, son’s education, for buying a piece of land, and so forth. The life insurance industry is engaged in providing financial security as well as savings and investment instruments for the Filipino individuals and their families. It is an active contributor to the country’s social and national development through its significant investments in government bonds and securities; the insurance and corporate taxes that it adds to the national coffers; and the Corporate Social Responsibility programs that it undertakes.