Essays on Superannuation Insurance and Deposit Products Essay

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The paper 'Superannuation Insurance and Deposit Products' is a great example of a Business Essay. Insurance is the arrangement whereby a company agrees to guarantee compensation to an individual once he or she undergoes a loss, damage or illness, and even death in return for a payment of a specified premium. Superannuation on the other hand is a regular payment made into a fund by an employee towards a future pension. For some of those that are employed, it is a compulsory deed for the employer to put money aside for us to use in the future.

Nearly everyone with a job is required to join a government-approved superannuation fund. When you are eligible for superannuation every time you get paid your employer pays a set amount of money into a large account which is then invested into activities like shares, property, and government bonds together with cash deposits. The funds are therefore only accessible once one retires however there are some very limited reasons why one may get access to the savings early. Term life insurance is less expensive than whole or universal life coverage and is favored by the people who only want life insurance for a specified period of time.

Therefore this type of insurance has premiums with coverage that has a pre-defined period of time. Another of its characteristics is the fact that the premiums can remain the same for the duration of the term that a client is covered for. Total permanent disability insurance (TPD) is living insurance that provides a lump sum benefit compensation in case one is rendered totally disabled due to an injury or an illness and one is unlikely to go back to his normal work.

Trauma insurance on the other hand is an amount of cash that is paid to a person tax-free upon diagnosis of a critical illness. The illnesses covered are based on the insurance companies' decisions on what illness to cover and which one not to cover. There is also the income protection insurance which is the insurance coverage that pays out when one is unable to work due to an injury or an illness. Its duration is based on retirement, death or ones return to work.

This sought of insurance was formerly known as permanent health insurance. This sought of insurance provides back to work help when an individual is unable to work due to sickness. Another major player in the life insurance and term insurance policies would be India. In his country insurance came into existence in 1956 through the amalgamation of the Indian insurance companies that were in existence then. The amalgamation was achieved with the help of the life insurance act that was passed in India then.

Therefore India has been among the top key players of this sought of insurance for a long time and is therefore among the top players with Australia. Insurance is a very important thing to have especially if one is subjected to risks in his job or his daily activities it would be wise to take a cover that is going to help him or her. One of the benefits of insurance is the fact that it will help you manage the risks of relatively rare but expensive events throughout someone’ s life.

Without a good insurance policy, one would be forced to cover the loss that he or she has experienced but with an insurance cover, one can be reinstated to the original financial position that he or she was in before the event occurred. Such events include fire, accidents, theft, and many more.

References

Bird, R., Chin, H. & McCrae, M., 1983. The Performance of Australian Superannuation Funds. Australian Journal of Management, 8(1), pp. 49-69.

Brown, K., Gallery, G. & Gallery, N., 2002. Informed Superannuation Choice: Constraints and Policy Resolutions. Economic Analysis and Policy, 32(1), pp. 71-90.

Drew, M. & Stanford, J., 2003. Returns from investing in Australian equity superannuation funds, 1991–1999. The Service Industries journal, 23(4), pp. 12-24.

Sanderson, J., 2014. Insurance in superannuation. s.l.:s.n.

Showers, V. E. & Shotick, J. A., 1994. The Effects of Household Characteristics on Demand for Insurance: A Tobit Analysis. The Journal of Risk and Insurance, 61(3), pp. 492-502.

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