Role of Insurance in Private Sector
Insurance is another tool of risk management technique used by several economists.Insurance canbe considered as the support of some unexpected lost. There is a term called premium which the users need to pay for a certain return after some time.
The premium that is given is subjected to investment done by the economist in share market or stock market. Then the initial amount changes due to the interest and dividend according to the market price. Now let us see what is the role of the insurance policies to private sector.
- Retirement plan: Now a day more people are working in the private sector than government sector. Government employee must have their provident funds that can be used after the retirement as passive income but for the private employee the insurance acts as a provident fund. The small investment in present cause a huge support after your retirement.
- Health plan: Accident can occur at any time. If we are not able to change the faith then be ready to fight against it. Heath plans are the most reliable option for them who wants to secure their family at any point of time. For the government employee, government took all the responsibility of his worker. So, private sector insurance riled like an unbeatable option for the private sector worker.
- Child plan: The expenses are increasing at an exponential growth. To support the huge expenses, child plan is a very good option. In the child’s plan one can store some amount of money for the future of the child even there is no any source of income.
- Pension plan: Pension plan can work as the very good option for those people who wants to be independent for their whole life.
- Plan for commercial property: This is the policy related to the personal property. A person can secure any of its assets using this plan. As per example I can make insurance for my bike or brand new home.
- Money-Back plan: Money back plan acts just like a savings account of some government organizations. It is the best option for getting money as well as fixing your life for the future.
The involvement of the private sectors insurance industry is good sign as because it is the only one option to fight against the wall of the market inflation.
Although there is significant role of insurance in the private sector as well as the government sectors employee, but everyone is requested to know the entire plan before investment is done. Keep in mind any investment done for the insurance are subjected to the market risk.
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