"Insurance is a contract between two parties whereby one party called insurer undertakes an exchange for a fixed sum called premiums, to pay the other party called insured a fixed amount of money on the happening of a certain event."
Insurance is a protection against financial loss arising in the wake of an unexpected event. Insurance companies collect premiums to provide for this protection. A loss is paid out of the premiums collected from the insuring public and the insurance companies act as trustees to the amount collected.
For example, in a life insurance policy, by paying a premium to the insurer, the family of the insured person receives a fixed compensation on the death of the insured. Similarly, in car insurance, in the event of the car meeting with an accident, the insured receives the compensation to the extent of damage.
It is a system by which the losses suffered by a few are spread over many, exposed to similar risks.
Insurance is desired to safeguard oneself and one's family against possible losses on account of risks and perils. It provides financial compensation for the losses suffered due to the happening of any unforeseen events.
By taking life insurance, a person can have peace of mind and need not worry about the financial consequences in the case of untimely death. Certain Insurance contracts are also made compulsory by legislation.
[...] Few of the Life insurance policies are: Endowment policies - Cover the insured for a specific period. The insured receives money on survival of the term and is not covered thereafter. Money back policies - The nominee receives money immediately on the death of the insured. On survival, the insured receives money at regular intervals during the term. These policies cost more than endowment with profit policies. Annuities / Children's policies - The nominee receives a guaranteed amount of money at a pre-determined time and not immediately on the death of the insured. [...]
[...] This information allows you to understand the major forces driving brand equity and purchase decisions that lead to superior brand equity strategies. How to Estimate Utilities (Value) We use trade off analysis (e.g., conjoint analysis, discrete choice modeling) to estimate utilities. These are very powerful and proven techniques for measuring the value people place on product features, prices and brand names. The most effective research designs for measuring Brand Equity use a two-stage conjoint model: First, we measure the utilities of all key features of the product, including price and brand name, and in total. [...]
[...] Just like anyone would help care for a neighbor's children, as you see when a breadwinner dies and a collection is taken up, life insurance is designed to help take care of families in need when the income of the breadwinner is lost. All that a life insurance company does is allow for the "collection" to be done in advance and to be a central source for the "neighborhood" taking in the money, investing it wisely and sending it to those in their moment of need. [...]
[...] Brand Equity Fact-based insight into the current brand equity provides a critical starting point for sound decision-making, equity management and extension. Brand extension into new categories can be greatly accelerated by defining a product adoption path to build on the existing equity by adding new benefits. Our process involves defining the current equity fact base and then testing brand extension levers through specific new product or service offerings. Understanding & Evaluating Brand Equity A Useful Definition of Brand Equity There are many different definitions of Brand Equity, but they do have several common factors: Monetary Value. [...]
[...] How to Use Brand Equity Information Market simulations and scenarios can be performed. Using estimated utilities, we can simulate market preferences for our products and those of the competition. Various scenarios can be created which involve the introduction of new products or modifications to existing products to determine the effects of these changes on preferences. This information can be used to: Evaluate product line extensions with and without the use of an existing brand name. Introduce new products with and without brand name affiliation. [...]
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