More than just financial support, life insurance also acts as a safe and profitable long-term investment.
When disasters strikes -manmade or natural -one wants to be able to rebuild after wards. However, that cannot happen without preparation. There is risk in every endeavour and an entrepreneur may have mortgaged home or emptied life savings to start the business. To ensure that all the hard work is not negated by some unforeseen circumstance, one needs to secure adequate business insurance to protect oneself, one's investment, employees, and the bottom line.
As impossible as it may seem, insurance coverage is available for almost every possible risk your business may face. And naturally , the cost and amount of coverage of policies vary among insurers. There are three types of life insurance -whole life insurance, endowment life insurance, and term life insurance.
Kamal Panthi, head of operation department at Nepal Life Insurance Company (NLIC), says, “Many business owners feel business insurance is an expense that they cannot afford, but that is hardly an excuse considering the many types of insurances available to secure their business and employees.“
Life insurance not only provides for financial support in the event of untimely death but also acts as a long-term investment. Traditional life insurance policies -traditional endowment plans -offer in-built guarantees and defined maturi ty benefits through variety of product options with bonus in maturity. According to Panthi, regular savings over a long period ensures that a decent amount is built to meet financial needs after retirement.
Term life insurance to employees is popular among corporate houses. He informs that the insurer should pay an annual premium charge of Rs 150 only for term insurance of Rs 100,000 at NLIC. According to him, the rate of insurance claim due to untimely demise due to accidents is minimum -only three per cent. Claiming that many other insurance companies have policies to refund the amount only if a person dies in an accident, Panthi says this policy does not make any sense, which is why NLIC assures refund of the insured amount to insurer in case of demise, irrespective of of the cause, before maturity.
In Nepali society, insurance of i, fixed assets while initiating a g business is popular, whereas t insurance of variable assets is al not given as much priority . “The government is not sensitive about the issue of employee oinsurance, because of which e many companies are operating without providing any kind of insurance for their employees“ maintains Panthi, adding that insurance of both fixed assets and employees keeps business safe in any condition.
Companies are likely to have property, casualty, liability, commercial auto, health, and other insurance according to the nature of the business.
Hari Sitaula, managing and marketing director at Unique Path Treks and Expedition Pvt Ltd, states, “As we are working in the adventure sector, there is a high risk of any unforeseen f event. Insurance decreases the a burden to the family as well s as company, in case of any s mishaps.“ Life insurance bee comes a necessity in this regard e and facilitating employees with e insurance secures them. Sitaula h informs that they have different g categories of insurance for employees, according to their posts and risks that they bear in the field. The term-insurance coverage for guides and cooks is Rs 300,000 per person and Rs 200,000 for each porter, whereas provision of endowment life insurance is reserved for veteran staff. According to him, their company sends detailed reports to the insurance company about the field trip and their employees and the duration is clearly defined.
Panthi states that life insurance cannot be imposed upon anyone. Nonetheless, he highlights the need for the general mass to understand its importance. “One of the ways of ensuring this could be if the government included the topic of life insurance even in the school curriculum to increase awareness about its benefits from grassroots level,“ he maintains.
Benefits of Insurance
> Risk Cover
> Planning for Life Stage needs
> Protection against rising health expenses
> Builds the habit of thrift
> Safe and Profitable long-term investment
> Assured income through annuities
> Protection plus savinggs ove a long term
> Growth through dividends
> Facility of loans without affecting the policy benefits
> Tax Benefits
> Mortgage redemption
source: The Himalayan Times, 11 March 2012
LINK
When disasters strikes -manmade or natural -one wants to be able to rebuild after wards. However, that cannot happen without preparation. There is risk in every endeavour and an entrepreneur may have mortgaged home or emptied life savings to start the business. To ensure that all the hard work is not negated by some unforeseen circumstance, one needs to secure adequate business insurance to protect oneself, one's investment, employees, and the bottom line.
As impossible as it may seem, insurance coverage is available for almost every possible risk your business may face. And naturally , the cost and amount of coverage of policies vary among insurers. There are three types of life insurance -whole life insurance, endowment life insurance, and term life insurance.
Kamal Panthi, head of operation department at Nepal Life Insurance Company (NLIC), says, “Many business owners feel business insurance is an expense that they cannot afford, but that is hardly an excuse considering the many types of insurances available to secure their business and employees.“
Life insurance not only provides for financial support in the event of untimely death but also acts as a long-term investment. Traditional life insurance policies -traditional endowment plans -offer in-built guarantees and defined maturi ty benefits through variety of product options with bonus in maturity. According to Panthi, regular savings over a long period ensures that a decent amount is built to meet financial needs after retirement.
Term life insurance to employees is popular among corporate houses. He informs that the insurer should pay an annual premium charge of Rs 150 only for term insurance of Rs 100,000 at NLIC. According to him, the rate of insurance claim due to untimely demise due to accidents is minimum -only three per cent. Claiming that many other insurance companies have policies to refund the amount only if a person dies in an accident, Panthi says this policy does not make any sense, which is why NLIC assures refund of the insured amount to insurer in case of demise, irrespective of of the cause, before maturity.
In Nepali society, insurance of i, fixed assets while initiating a g business is popular, whereas t insurance of variable assets is al not given as much priority . “The government is not sensitive about the issue of employee oinsurance, because of which e many companies are operating without providing any kind of insurance for their employees“ maintains Panthi, adding that insurance of both fixed assets and employees keeps business safe in any condition.
Companies are likely to have property, casualty, liability, commercial auto, health, and other insurance according to the nature of the business.
Hari Sitaula, managing and marketing director at Unique Path Treks and Expedition Pvt Ltd, states, “As we are working in the adventure sector, there is a high risk of any unforeseen f event. Insurance decreases the a burden to the family as well s as company, in case of any s mishaps.“ Life insurance bee comes a necessity in this regard e and facilitating employees with e insurance secures them. Sitaula h informs that they have different g categories of insurance for employees, according to their posts and risks that they bear in the field. The term-insurance coverage for guides and cooks is Rs 300,000 per person and Rs 200,000 for each porter, whereas provision of endowment life insurance is reserved for veteran staff. According to him, their company sends detailed reports to the insurance company about the field trip and their employees and the duration is clearly defined.
Panthi states that life insurance cannot be imposed upon anyone. Nonetheless, he highlights the need for the general mass to understand its importance. “One of the ways of ensuring this could be if the government included the topic of life insurance even in the school curriculum to increase awareness about its benefits from grassroots level,“ he maintains.
Benefits of Insurance
> Risk Cover
> Planning for Life Stage needs
> Protection against rising health expenses
> Builds the habit of thrift
> Safe and Profitable long-term investment
> Assured income through annuities
> Protection plus savinggs ove a long term
> Growth through dividends
> Facility of loans without affecting the policy benefits
> Tax Benefits
> Mortgage redemption
source: The Himalayan Times, 11 March 2012
LINK
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