How The Insurance Industry Works? | Financial Planning Process | Dr Sanjay Tolani

🤔 How The Insurance Industry Works? 🤔

Insurance is a very old industry. It is actually deep rooted into culture. Insurance is a small amount of money that is given to the community, and there's what we call a risk pool and the money is collected in that pool of money. That pool is then used to PAY OUT if anyone falls sick, if they pass away, when they retire, when the kids go to college. That pool is used to pay those moneys out. The insurance company's job is to PROTECT that pool. Because there are a lot of people who would try to defraud, so they would find a way to make money from their pool, rather than understand that that pool is for the WHOLE COMMUNITY.

But that's what insurance does. Insurance is a manager of that pool of money which gets used to pay out to people who need it. But there are people out there that try to DEFRAUD that pool, and that's where investigation comes into play. So insurance companies would investigate claims that they feel are not genuine. And that's why the most important thing when it comes to insurance is Understanding the Documentation, Understanding what is covered, what is not covered, and trying to sit down with the PROPER Financial Adviser or Intergenerational Planner that will be able to guide you on what type of insurance is to buy.

Insurance is a business that is based only on one thing: Pay off premiums on time to make sure that you are covered for eventualities. And there are 4 primary eventualities that you should be covered for:

✅ Number one, in case you pass away the family needs income protection.
✅ Number two, in case you fall ill, the family needs income protection.
✅ Number three is if you're when you retire you want to make sure that you have a steady flow of income.
✅ And number four is when your kids go to college you might as well have some money on the side because you will need to pay for it.

There are other types of insurances like Medical Insurance, Car Insurance, Travel Insurance. These are what we call Non-Life Insurances. These insurance policies work on the same principles, but the only difference is: "The probability changes". So the premium that you pay is the probability of something going wrong. If your premium is higher means you have a higher probability of something going wrong. Please understand that!.

So if you do have questions. Sit down with the Intergenerational Planner or Financial Adviser and get yourself more details. But the Insurance Industry is here to protect you, and that's what they do BEST!.

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🎖 Who is Dr Sanjay Tolani? 🎖
Dr. Sanjay Tolani, became the “youngest member” at the age of 19 and the “youngest life member” at the Age of 28 to the Million Dollar Round Table (MDRT). He also has 13 Top of the Table Qualifications (TOT), which is considered the pinnacle of the financial services profession. To top things off, he is also the youngest Managing Director of an insurance brokerage in the Middle East.

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[eng]

Awesome ! It's all about the probability influencing the premium.. super explanation

[shintalestari]

Thank you Sanjay, after hearing your explanation, I am become more confidence about this bussiness..

[oneilbuchanan]

Always strong points doc.great presentation

[francismaganaquevada]

I am very interested to know much more and I need your book Dr. Tolani. More blessings to you Sir.

[shivammalik]

Hello Sir, I have a Master's Degree in Mathematics and I'm willing to go for Insurance Sector . Can you please suggest how to proceed ??

[vephan]

Very good and funny videos bring a great sense of entertainment!

[MuhammadIjaz-iqqd]

Dr. Sanjy watch your video on risk sharing with society example it was excellent form me, because i am working in Takaful company as trainer and gits lots of knowledge. I wan to meet with you at Dubai, please share your schedule. I would be appreciate.

[Fundamental_Islam.]

You forgot to mention it’s also an easy way of making money some ppl invented. Like how does the company makes money?

[tegulvedameile]

*Think big, set goals, work hard and succeed.* I realize in life there’s no shortcut to getting rich, but investing remains the best way to go about it.

[sharvinmurugan]

Hello sir, can i know what is the nature of business for insurance..?

[prasea]

was the guy in AD that popped before this video began was you? 😀😀

[Ankit-xqdc]

But after the insurance company pays us when something happens do we have to pay the company back ??

[meetbhatt]

can you tell me what are the key levers for insurance industry?

[pamelaferguson]

A big thanks to Africa billionaire on YouTube for introducing me to mutual benefit assurance plc, I was able to build a house and bought a car with one of their policy, am so happy.

[anamitrasom]

Insurence is for protection only -life/ term insurence & medical insurance.It is not needed for retirement needs or children's education.

[pritampawar]

Sir I want your books.

Let me know how to pay in Indian rupees

[adeolagabriel]

I have been able to have massive wealth for my family through mutual benefit assurance plc, all thanks to Africa billionaire who introduced me to them.

[upsctop]

sir, why insurance industry commence only from calcutta ?

[prashanthirwani]

Valuable video Worth watching it and well scripted .