Today in this article, what is insurance? And what kind is it? We will learn about the importance of insurance in our life and many important information related to it. Nowadays we get the most advertisements to see the most related to insurance. After that, there is a desire in people’s minds to know about all the information related to insurance or insurance. Today in this article we will look at all the important questions related to insurance. I sincerely hope that if you read this what is Insurance article completely, then you will not need to read any more article on Google. So let’s first talk about What is Insurance and what are its types ?
What Is Insurance ?
Insurance is a better way to protect us from future or future losses. Since no one has an idea of their future, we take out insurance only to prevent future losses. If anyone gets insurance and has any problem in the future, the insurance company will pay for it.
There are many types of insurance, apart from life insurance, it is also insurance for motor vehicle, house, car, smartphone, property, etc. If you have a household or vehicle insurance, then in case of major damage to the vehicle, then the insurance company will pay you the damage.
If you want to get insurance with any company, there are certain contracts. In these contracts, the insured must take a fixed amount of premium in the company. Your loss is compensated according to this premium amount. There are insurances where the entire amount is deposited at once instead of monthly installments.
In future, whenever there is a loss on your insured item, then the insurance company will pay you the amount of your loss according to the contract given to you at the time of insurance. I hope you must have understood very easily what is insurance.
Types of Insurance
There are many types of insurance. Here we will learn about all the important types of insurance. Let us know how many types of insurance there are –
1. Whole life insurance
Whole life insurance is for protecting your life. When you get this insurance, your life will be safe after that. This means that after taking out an insurance plan, the insurance company will provide you with the cost of any accident that happens in your life. You will get the benefit of this policy if you pay its premium. The duration of whole life insurance is about 100 years. If you want to keep your life safe, you need to plan to take out whole life insurance.
2. Endowment plan
This insurance plan is very good. Apart from covering your life while investing, it also helps you in some important tasks or goals of your life. In this insurance you have to pay the premium, this amount is used to invest in your business etc. Also, if the person who is insured dies during the term of the policy, the insurer appointed by the insurer will get the entire sum assured. . It would be a good plan to meet your investment and all requirements.
3. Term life insurance
Term life insurance is one of the best life insurance plans that gives you great coverage at low premiums. In the event that a certain person has term life insurance and the insured dies in the meantime, the insurance company pays out any sum insured of the insured. After that, the insured’s family can cover their expenses apart from paying the loan etc. The most important thing about this plan is that it allows you to choose a sum assured of 15 to 20 times the individual’s annual income.
4. Money Back Policy
You have to pay a certain amount during the refund policy. This policy refunds you from time to time. If suppose you have taken a money back policy for 20 years, then here you will get a fixed amount of payment in 5th, 10th, 15th year. Moreover, when your policy is completed for 20 years, you will get the full payout along with the bonus.
5. Unit Link Insurance Plan
Unit Linked Insurance Plan works like a subsidy plan. In this case, part of your premium is given to you to protect your life and part is invested in the market to return your money.
What is General Insurance, and its types
There is an insurance that is not covered by life insurance, this type of insurance is called general insurance. There are many types of insurance under this which include Fire Insurance, Marine Insurance, Motor Insurance, Accident Insurance etc. This insurance comes to us when we have any such property which may be damaged anytime in any accident. , general insurance is taken out to protect property. The way in which the insured pays premiums in life insurance, he must pay premiums in general insurance as well. Let’s find out. What are the types of general insurance?
1. Health insurance
Health insurance comes in handy in a situation where we are in the hospital due to an illness or injury. This saves hospitalization costs. When you are sick and all your hospitalization expenses are covered by the insurance company. There are many contracts under the health insurance plan, in this you can also get health insurance for the whole family in one plan.
2. Travel insurance
If you travel a lot, then travel insurance is very important to you. If you are going on a trip abroad, in such a situation there is any damage to you or your belongings, then the insurance company pays for it. In addition, it also protects against damages in the event of a flight delay or trip cancellation. Also, if you are admitted to the hospital during the trip, then the insurance company also covers the cost of your entire treatment.
3. Home insurance
Home insurance protects you against damage to your home and the goods inside it. In addition, there are home insurance policies that also cover the costs incurred while renovating your home.
4. Motor vehicle insurance
Motor insurance is very useful for damages caused to your vehicle. If your vehicle is stolen or if there is any break-in, you will get insurance for your vehicle. Motor Insurance There are two types of insurance, one is motor vehicle liability insurance, which provides cover if your vehicle is damaged by a third party in an accident. Third party insurance is compulsory for all vehicles on the road under the Motor Vehicles Act 1988.
There is another motor insurance policy, Comprehensive motor insurance, under which the insurance company covers you for damages caused to your vehicle by fire, riots and in any way.
All materials link ⤵️
5. Crop insurance
According to some rules, every farmer who takes an agricultural loan has to buy crop insurance. If you have crop insurance, then as part of crop insurance, the insurance company provides you with compensation for any damage caused to the crop. If your crop is damaged due to flood, fire or any other reason. You will therefore receive compensation for the crop from the insurance company.
Crop insurance is very strict, which makes farmers less enthusiastic about crop insurance due to non-payment of compensation. In fact, if your crop is damaged, the insurance company will also look at the surrounding fields to compensate, when other farmers’ crops have been damaged along with you, then only you will be compensated.
5 thoughts on “Types of Insurance ? What is Insurance”