We all have heard that there are many types of insurance such as life insurance, auto insurance, property insurance. In fact, it is necessary to thoroughly understand what insurance means, why insurance should be taken, and what are the insurance facilities available in our country. Thus comprehensive information about insurance is provided for you.
What is insurance..?
Insurance or insurance is when a person buys an insurance policy from an insurance company or makes mutual agreement for insurance by paying annual, monthly or quarterly installments. In return, the insurance company insures the policyholder against any loss or risk that may occur in the future.
Not only individuals, but also public sector companies and private companies can purchase insurance for the safety of their employees. Insurance as a whole works as a risk management plan in case of future loss, illness, death, property damage etc. Insurance is the only financial plan that reduces stress by providing financial assistance in case of loss.
Insurance Plans Available in India There are several types of insurance plans available in the country and the major types of insurance are as follows.
Life insurance
A life insurance plan is a mutual agreement between the person taking the policy and the insurance company by paying a certain amount of premium annually, monthly or quarterly. The insurance company provides financial security to the policyholder through insurance in case of future life loss, loss of life of the policyholder or his dependents, loss of property etc. Many public sector and private sector companies are providing various types of insurance plans to provide financial security through insurance in case of various problems that may occur in life. The sum assured in a life insurance policy can be used in a number of ways for retirement life security, health care etc. There is no risk cover in life insurance policies. But you can get loan on these.
Life insurance includes payment of specified sum assured on death, maturity benefit on policy maturity and tax exemption facilities. There are two types of life insurance namely 'Whole Life Insurance Plan' and 'Term Life Insurance Plan'.
Health insurance
Health insurance is another type of insurance available in India. Health insurance provides protection against medical expenses incurred due to illness or accident, hospitalization, medical care, surgery, medical advice, diagnostic tests, ambulance services, drug expenses etc. All these benefits can be availed by purchasing a policy from an insurance company with an agreement to pay premium in fixed installments. The insurance company covers all future health related expenses. Some companies also cover the cost of regular health check-ups.
Car insurance
While buying a car it is wise to buy a good car insurance along with it. Car insurance is necessary to deal with the situation when the car that you have spent a lot of money on is unfortunately involved in an accident or is lost. Sometimes accidents happen due to our own fault. Sometimes accidents happen due to circumstances beyond our control. Thus, one should buy car insurance that can provide safety in both cases of man-made or natural calamities.
Two wheeler insurance
The number of two-wheelers in India is more than that of cars. Hence it is essential for all owners of two wheelers to insure their vehicles against natural or man-made accidents. Almost all insurance companies in the country have two wheeler insurance plans. Apart from the insurance provisions, they also offer some additional safety features to the customers. In case of an accident or loss of vehicle, loss of keys, repair costs when the vehicle is lost on the road, insurance companies cover various types of expenses.
Travel insurance
Traveling and traveling around the world is a favorite hobby of most people. Thus, companies offer various types of travel insurance to help you travel with peace of mind. Travel insurance comes in handy in many emergency situations like lost bag, passport or trip cancellation or illness while travelling. Now it is very easy to buy travel insurance through online and nowadays there is a trend of most of the tourists buying insurance.
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