MEANING OF INSURANCE
                  Insurance means promise of compensation for any potential future losses, Facilitates reimbursement during crisis situations.

    There are different insurance companies that offer wide range of insurance options and an insurance purchaser can select as per own convenience and preference.

Several insurances provide comprehensive coverage with affordable premiums. Premiums are periodical payment and different insurers offer diverse premium options.
The periodical insurance premiums are calculated according to the total insurance amount.
        The main meaning of insurance are used as effective tools of risk management. Quantified risks of different volumes can be insured.

Major types of insurances are as mentioned below:

• Life insurance: Descendant's family receives financial benefits. Life insurances also offer paid proceeds to the beneficiary.
• Automobile insurance: Usually automobile insurances cover damages and legal financial expenditures of the automobile driver. 
• Health insurance:Health insurance cover the expenditures associated to treatment and medical expenditures.
• Credit insurance:Borrowers often fail to repay debts,loans and mortgages due to certain unavoidable circumstances,credit insurances can be of great help during such crisis.
• Property insurance:Property protection insurance provide protection from risks associated to theft,fire,floods etc.

This type of insurance can be further classified into specialized forms as follows:

• Fire insurances
• Earthquake insurances
• Flood insurance
• Home insurance
• Boiler insurance

At present insurance market is much vibrant than before and this has an impact on the rates of different insurance premiums.

Type of insurance companies can be categorized into two main divisions:

• General insurance companies

• Life insurance companies: The companies,dealing with life insurance,pension products and annuities are life insurance companies.

Insurance companies are usually identified as stock companies.Insurance is a device for indemnifying an individual against loss and in the recent past due to natural calamities,few insurance companies have suffered financial setback.Premiums of few insurances have suddenly gone uphill as plenty of insurance providers have become insolvent. While selecting an insurance company,financial strength of the company must be considered as viability of the insurance provider is extremely crucial.

Preparation for Securing Equity Finance

  Preparation for Securing Equity Finance 
 
The most important, as well as, basic part of obtaining equity finance is the preparation for securing equity finance. There are several steps of preparation for securing equity finance as well as important issues, that need to be looked at, in order for the preparation to be successful.

On Preparation for Securing Equity Finance

The process of preparation for securing equity finance involves a lot of planning on part of the entrepreneur who seeks equity finance to either start, run or expand a business. One of the most important parts of preparation for securing equity finance is a business plan. The business plans should be having the various details of the marketing plan as well as financial projections that have to be realistic.

 Steps of Preparation for Securing Equity Finance 

One of the most important steps of preparation for securing equity finance is to consult the business advisers so that the possibilities of mistakes could be eliminated. The companies that want equity finance should also do thorough research on the investors, who they feel, might invest in their company.

Important Issues of Preparation for Securing Equity Finance 

There are certain important issues of preparation for securing equity finance. One of the most basic issues in this case is that of the amount of funds necessary to start operations. The companies should also decide on the amount of control they want to have over their business and the time frame for the requirement of the funds.

       The companies that want equity finance have to keep these factors in mind when they are making their proposals. They should make sure that they highlight these aspects when they make the business proposals. There are also certain factors that the investors look for in businesses.

      They would look at the financial requirements of the new companies. The investors also need to judge if the enterprises of the companies are realistic enough and if these companies actually need external financial help. The modes and other details of repayment also need to be looked at. The skill levels of the management as well as monetary predictions and the possible usage of the investment needs to be highlighted as well.

Approaching Investors for Securing Equity Finance 

An important part of preparation for securing equity finance is approaching investors. There are certain things that have to be kept in mind while approaching the investors. For example, the company should see if the investor, whom they want to approach, is ready and willing in their business or not. They can also try out networking as that is a convenient way of approaching investors.

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Equity finance and insurance loan

      Equity Finance is the money raised for company activities by selling common or preferred stock to individual or institutional investors.
In return for the money paid, shareholders receive ownership interests in the corporation. It is also known as "share capital". Equity finance comes in various forms and is principally provided by venture capitalists and business angels.

On Equity Finance
      Equity Finance may be defined as a method that is used in order to generate share capital resources from external investors, with the share capital being provided in lieu of company shares. Equity finance is normally invested with the assumption that medium to long term profits may be made.

Equity Finance is likely to be most suitable where:

• The nature of a project deters debt providers, e.g. banks
• The business will not have enough cash to pay loan interest because it is needed for core activities or funding growth

Sources of Equity Finance

• Finance for Business offers flexible finance solutions such as loans and equity finance for businesses with viable business plans that are unable to get support from commercial banks and investors.
• The Capital for Enterprise Fund is a &75 million equity fund. It brings together &50 million of government money with &25 million from major banks and provides longer-term capital to companies who have exhausted their traditional borrowing capacity. The scheme is part of the government's Real help initiative.
• Enterprise Investment Scheme: Some limited companies can raise funds under the Enterprise Investment Scheme (EIS). The scheme applies to small companies carrying on a qualifying trade & provides potential tax advantages for individuals who invest in such companies.
• Venture capital is most often used for high-growth businesses destined for sale or flotation on the stock market.
• Business angels can offer investment, particularly in the early or growth stages of development, in return for equity.

Equity Finance Risks
There is a lot of risk involved; this can be said based on the fact that the payment of the investors is highly dependent on the success of the company. Having no growth or profit would result in an adverse effect on the payment possibilities of investors. This is the reason why equity finance is also referred to as risk capital.