Different Kinds of Insurance
Our lives are full of uncertainties. At times there might be some expenses that come out of nowhere. These expenses could be due to medical emergencies, accidents, or loss of property. It isn't easy to plan or know when any such event might occur. Individuals can take steps to protect themselves from any such event, but insurance can provide much-needed financial assistance and support in the case of an unforeseen event. Luckily, different types of insurance are readily available for individuals and businesses.
Insurance types you should know
Primarily, there are two main groups or types of insurance available that you should know about. These groups are General Insurance and Life Insurance.
General Insurance in India covers several types of insurance policies. These policies are health care coverage, insurance against fire, automobile insurance, property insurance, and travel insurance, to name a few. These insurance policies mainly cover and protect from the damage caused to one’s property or health.
Life insurance policies are a type of insurance policy that protects one against unforeseen circumstances like the death of the policyholder. An individual can take a life insurance policy to secure the financial future of loved ones in the case of such an event. Term Insurance, Unit linked insurance plans, endowment plans, whole life insurance, etc., are some of the types of insurance policies available.
Different kinds of insurance available
Home insurance policies cover and protect the policyholder in the event of damage to property. This policy covers damages that occur due to natural calamities like earthquakes or floods. It also covers man-made calamities like loss of property through fire. Landlords and tenants can avail of home insurance policies to protect themselves from losses or damages that might occur in a rented property.
Travel insurance policies are beneficial for anyone travelling within the country or abroad. This policy offers financial protection against any problem one might face while travelling. Issues like loss of baggage, loss of documents, medical emergencies, etc., are covered by this type of insurance.
As the name suggests, fire insurance provides financial compensation against any loss or damage of property that might occur due to an outbreak of fire. Individuals, as well as companies, can avail of fire insurance policies. The insurance compensation can help replace the property or restart the business. There are several types of fire insurance policies like floating policies, specific policies, replacing policies or comprehensive fire policies.
Medical bills can significantly enhance your unplanned expenditure. These costs are especially higher during medical emergencies. A health insurance policy covers the medical expenses that may occur. These policies cover expenses like hospitalization bills, treatment of severe or critical illnesses and post-hospitalization bills. There are several types of health insurance policies like family health insurance, individual health insurance, senior citizen health insurance, maternity health insurance etc.
In the case your vehicle is involved in an accident, a motor insurance policy can help cover the financial costs that one may have to incur. In India, there are mainly three different types of motor insurance. Car insurance covers privately owned cars. Bike insurance covers individually owned two-wheelers. Commercial vehicle insurance covers vehicles that are mainly used for commercial purposes. These insurance policies compensate for any damage that may occur due to a vehicle being involved in an accident.
Benefits of having other types of insurance
Apart from the above-mentioned insurance policies, several other types of insurance are available too. Check out some of the benefits that insurance policies offer to the policyholder.
The primary function of an insurance policy is to provide financial protection against the loss or damage to an individual’s property, health or life. Insurance companies fairly compensate the policyholder and provide the financial aid needed.
Develops a habit of saving
An individual needs to pay a premium to the insurance company to obtain an insurance policy. This premium is paid annually or monthly. In order to regularly make these payments, one needs to save money. Several schemes promote the habit of saving or investing while getting the added benefit of an insurance policy
Insurance helps greatly to reduce uncertainty. Although it is not possible to know when an unforeseen event might take place, an insurance policy can help at least by assuring financial aid and support in times of emergencies.
There are different types of insurance which cover a wide variety of issues one might face. These policies are available for individuals as well as businesses. These policies can be of great help in times of emergencies.
What are the main types of insurance?
The main two groups of insurance are life insurance and general insurance.
Types of insurance policies in India?
There are multiple types of insurance policies in India like motor insurance, fire insurance, home insurance, life insurance etc.
Tax benefits for insurance?
Insurance policies offer several tax benefits depending on the policy. For instance, the life insurance premium paid can be claimed as a deduction up to Rs 1.5 lakh under Section 80C of the Income Tax Act.
Explain insurance plans and policies.
An insurance plan or policy provides financial protection to the policyholder in the case of an unforeseen event. An insurance policy can be availed by paying a premium to the insurance company.
Types of insurance for children?
Some of the types of insurance available for children are Child Unit Linked Insurance Plans, Endowment Plans, and Regular or Single-Premium Child Plans.
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