In this article, We will see all the Importance of having Insurance and what are the different types of insurance available for Indians. Let us check out What is Insurance? Difference between life insurance and Health insurance,.. importance of Travel insurance, car insurance and more.
What Is Insurance?
Insurance is a contract a legal agreement that is represented by a policy, In which an individual or an Entity will receive Financial Protection or compensate against the Losses from an Insurance Company.
It is a form of risk management, used to hedge against the risk of uncertain loss. An entity or a Company which provides insurance is known as an insurer or an Insurance company. A person or an entity who holds or buys insurance is known as the policyholder.
These Insurance policies are used to protect against the risk of financial losses, Even if the loss is big and small, that may include the damage to the insured or his/her property for damage or injury or any financial losses.
How does Insurance work?
The Insurer and the Insured person or an entity get a legal contract for the insurance, which is simply called the Insurance policy. This Insurance policy has all the details about the conditions and circumstances under which the insurance company is willing to pay out the losses or insurance amount to the Policyholder or the entity which brought the insurance.
How does Health Insurance work?
Insurance is a way of protecting the property, yourself, or your family from financial losses. Here, the Insurance company takes the risk to compensate the losses of the policyholders. Because only very few of the policyholders will actually end up claiming the Health Insurance.
Insurance and Types You should Know
In India, The type of Insurance can be broadly divided into two categories.
- Life Insurance
- General Insurance
What are the types of insurance available in India?
There are so many types of insurance available in India under the categories of Life insurance and General insurance like health insurance, Motor Insurance, Home Insurance, and many more.
what is Life Insurance?
Life Insurance is insurance that pays you out a sum of money either on the death of the insured person or after a set of periods they claimed. There are various types of life insurance. The most commonly used Life insurance is listed below. Also, read: Best Tips to overcome inflation
You can choose a Life Insurance policy to secure your life and your family’s financial future against life and health uncertainties. The Insurance company will pay the loss to your loved ones if anything happens to you as any health issues or Injuries to pay off the bill for the hospital.
- Term Life Insurance
- Whole Life Insurance
- Child plans
- Pension plans
- General Insurance
What is General Insurance – Importance of Health insurance
The term General Insurance Policies is one of the types of Insurance that offer coverage in the form of a sum assured against the losses or the damage of the policyholder. Overall, general insurance is of Different types which offer financial protection against the losses that occurred due to the liabilities such as cars, bikes, homes, and similar things.
In Simple words, General Insurance is the Insurance that has contracts or agreements that do not come under the ambit of Life Insurance are colled General Insurance. Also check out: How to Edit Sent Messages in WhatsApp
The Different Types of General insurance are fire accidents, motor accidents,s or any other miscellaneous non-life insurance in Korea. Following are some of the types of general insurance that are available in India:
- Health Insurance
- Home Insurance
- Travel Insurance
- Fire Insurance
- Motor Insurance
Travel Insurance and how to claim
It is a type of insurance that covers the costs and all the loss goes that are linked with traveling. This Travel insurance is most useful to people who travel domestically or abroad.
Many companies who sell traveling tickets are offering their customers to purchase travel insurance. Some travelers’ insurance policies will cover personal property and rented equipment like cars. Also, read how to become a freelancer
Frequently Asked Questions (FAQs)
1. What is Insurance?
Insurance is a legal agreement between an individual and the insurance company to provide financial coverage to the individual who brought insurance (policyholder)
2. What is Health Insurance?
The term health insurance is a type of insurance that only covers your medical expenses and bills. A health insurance policy is a contract between an insurer and an individual in which the insurer agrees to provide the specified health insurance that covers a particular “premium”.
3. What are the most common types of Insurance in India
In India, the most common Insurance types are
- 1. Health insurance
- 2. Motor insurance
- 3. Home Insurance
- 4. Retirement plans.
4. Is there any Waiting Period for claims under a policy?
Yes, generally there will be 30 day waiting period for claiming the insurance under a policy.
5. Is there any Waiting Period for claims under a policy?
Essentially The Insurance company will ask for identity proof and later all the required documents.
6. Why choose LIC or ICICI Lombard?
It is an Indian company that does clear research before purchasing any type of insurance.
Any Insurance might be Life Insurance or General Insurance, you can buy an insurance policy offline as well as Online. You will have an insurance agent who will help you to buy the policies. Finally, you must have done your research before choosing and investing in your insurance policy.