What is Insurance and What Types of insurance available in India?
Insurance is a lawful agreement between two parties i.e. the insurance company or policy holder. In this, the insurance company promises to make good the losses of the insured on happening of the insured unforeseen event. There are various type of insurance available in India.
The incident is the event which convert into a loss. It can be the death of the policyholder or destruction/damaged of the property. It’s called an incident due to insecurity in life. The policyholder pays a premium in return for the promise (Agreement) made by the insurance company.
2. How does insurance work?
The policy holder and the insurance company get are into a legal contract for the insurance, which is called the insurance policy. The insurance policy has details about the circumstances and situation under which the insurance company will pay out the insurance amount to either the policy holder or the nominees which has been decided at the time of taking the policy by policy holder.
Insurance is a way of securing yourself and your family from a financial loss. Generally, the premium for a big insurance cover is much smaller in terms of money paid. The insurance company takes this hazard of providing a high cover for a smaller premium because very few policy holders actually end up claiming the insurance. This is why you get insurance for a big amount at a less price.
Any person or business company can look for insurance from an insurance company, but the decision to provide insurance is at the judgment of the insurance company. The insurance company will assess the claim application to make a decision. Insurance companies decline to provide insurance to those who have high-risk.
3. Types of insurance available in India?
Types of insurance in India can be generally divided into different categories:
– Life insurance
Life insurance is insurance for your and your beloved life. You buy life insurance to make sure your family or loved ones are financially protected in the event of your unfortunate demise (Death). Life insurance is mainly important if you are the sole bread earner for your family or if your family is heavily dependent on your income. Under life insurance, the policyholder’s family is financially remunerated in case the policyholder has passed away during the term of the policy.
– Health insurance
Health insurance is bought to cover health costs for costly treatments. Different types of health insurance policies cover a range of diseases and ailment. You can buy a general health insurance policy as well as policies for exact diseases. The premium paid to a health insurance policy usually cover treatments, hospitalization and medication expenses.
– Auto insurance
Auto insurance is a policy purchased by vehicle owner to diminish costs associated with getting into an auto accident. As an alternative of paying out-of-pocket for auto accidents, people pay annual premiums to an auto insurance company; the company then offers all or most of the costs linked with an auto accident or other vehicle harm.
– Education Insurance
The child education insurance is similar to a life insurance policy which has been particularly designed as a saving tool. An education insurance can be a great way to provide a lump-sum amount of money when your child reaches the age for advanced education and gains entry into college or wants to do specific course like doctor, engineer etc. This fund can then be used to pay for your child’s higher education fees or related expenses. Under this insurance, the child is the life assured or the receiver of the funds, while the parent or guardian is the owner of the policy.
With Education planning calculator. The best tool to estimate the amount of money that will required to children’s higher education.
– Home insurance
Getting own house is a dream for every human being and enjoy the good simple life with parents and children’s? But this dream cannot fulfill if your house suffer loss due to major factors like fire or loss due to earthquake. But if you have a Home insurance policy then it is covered and you will get refunded amount for house suffered with loss but premium of home insurance policy should pay regularly. you can check more at policybazar in India.