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.