LECTURE 7

NEED FOR INSURANCE SERVICES

There is no doubting that knowing you and your loved ones are financially secure from several unanticipated circumstances can give you more Peace of Mind. Life’s uncertainties, such as an untimely death or a medical emergency, might arise at any time. Accidents or damage to your vehicle, property or other items are examples of these scenarios. Having to deal with the financial consequences of these events might burn a hole in your wallet. You could have to use your savings or your family’s hard-earned cash. As a result, you and your family require immediate insurance covers and financial support against all dangers affecting your life, health, and property.

1.      Financial security: No matter how much money you make or how much you have saved, an unforeseen incident can devastate your financial situation in an instant. As a result, insuring yourself, your family, and your valuables is the best approach to becoming financially secure. Your family depends on your financial support to maintain a respectable living level, which is why insurance becomes even more critical once we have a family. It implies that if something unexpected happens, the people who matter most in your life may be safeguarded from financial difficulty.

2.      Transfer of risk: The insurance contract is based on financial risk transfer from the insured to the insurer. As an insured, you pay premiums in exchange for compensation from the insurer in case of a covered occurrence. As a result, obtaining insurance lessens your financial burden.

3.      Social Security: retirement policy is a kind of insurance that allows you to save a portion of your income at a time and initiates your financial security after you retire. The covered person will receive a pension from accumulated income. Insurance provides financial stability as well as Peace of Mind. No amount of money can compensate for your Peace of Mind. As a result, insurance ensures you are protected against unanticipated life disasters, giving you complete Peace of Mind.

4.      Some types of insurance are compulsory: insurance is essential because it is sometimes required by law. Motor insurance is an example of this. Every motor vehicle being driven on Indian roads must have at least third-party motor insurance, according to the motor vehicle act of 1988. Motor insurance is quite helpful in the event of a claim.

5.      Insurance encourages savings: several live insurance policies, such as a money-back policy, assist in the formation of regular savings by allocating cash in the form of a premium each year. Your money back is policy-based and amounts to the policyholder after a few years of investing in the policy, unlike a standard life insurance plan that pays the money back at maturity.

While no one can foresee the future or prevent unexpected events from occurring, we may take steps to safeguard ourselves. Insurance plays an integral part in your life by providing financial security for you and your family in an emergency. Insurance is not only a tax-saving alternative; small deposits made over time will give you protection in advance.

NEED FOR THE POSTAL SERVICES

In India’s socio-economic development, postal services are essential. It is the government’s intermediary for delivering government programs to the needy on the last mile. These include providing financial assistance to people’s homes and transferring benefits directly through the India post payment banks or IPPB.

Many savings and investment plans are safe and secure because they are tailored to the most vulnerable members of society. The government backs these up.

Most services provided by Indian post offices, such as letter or parcel delivery, money transfers, insurance, and pension programs, add excellent value for money because the rates are inexpensive to the average person.

1.      Postal services: Letters, parcels, packets, in other mail are collected, sorted, and distributed by Indian postal services. In addition, a variety of different services are available to the general public as well as businesses.

2.      Remittance services: Let’s say you work far away from home and need to transfer money to your family. You can send it through the postal services remittance facility. Get offers money order and postal order services, leading users to send money from one location to another within and beyond a country.

3.      Banking services: Banks only deal with cash. A bank is a financial institution that accepts deposits from the general public and provides loans and advances to people who need finances. A bank, in addition to receiving deposits and lending money, also assists customers in a safe keeping their belongings, moving money from one location to another, and giving business information. Post offices provide some services, such as accepting and withdrawing public deposits. As a result, we can say that these are the banking services the post office offers. It provides several schemes under this service to encourage people to save.

4.      Insurance services: Post offices offer life insurance under two schemes

a.       Postal life insurance was first offered to postal workers. Employees of the federal and state governments, public sector businesses, universities, government 80 organizations, nationalized banks, and financial institutions have all been covered over the years. The post office allows employees of these companies under 50 to ensure their lives for the set duration by paying a predetermined premium. It promises to pay a specific amount of money up on the insured’s death or the end of a particular period.

b.      Rural postal life insurance: rural postal life insurance is provided by the post offices to a person living in rural areas and the poorer sections of society, similar to past life insurance. The insured person pays a very modest premium for insurance coverage under it.