What kind of insurance coverage you desire?

Synopsis of Insurance

Our life and property is always surrounded by risk. Risk is involved in almost everything we do. Whether it is driving your car on road, or travelling or going to work etc. So, it is mandate to have the security of insurance. Insurance helps to transfer the burden of risk to the insurance company.

Insurance is nothing but an agreement policy between the insurance company (the insurer) and the individual (the insured). The insured individual puchases the insurance policy from the insurance company and pays the premium on monthly, yearly, or quarterly basis. The insurance company in return safeguards the insured individual from any risk (which is included in the insurance policy) that might occur in the future.

The legal contract between the insurer and the insured is called the insurance policy. The conditions under which the insurance company pays the insurance amount to the insured individual or the nominees is mentioned in the insurance policy. In case of big insurance cover, the premium to be paid is quite low. As because very few insured individual claims his insurance, so the insurance company takes the risk provides huge coverage against low premiums.

 

Types of Insurance

Different kinds of insurances are there to safeguard different kinds of risks. Following are the types of insurances which are available in India-

  • Life Insurance

  • Non-life Insurance/General Insurance

Now, we will discuss the above mentioned insurances in details.

Life Insurance

To protect the insured individual’s family members against any unforseen accident or untimely death of the policy holder, life insurance policy is designed. Life insurance policy provides financial stability to the family members of the policy holder. The insured individual pays premium for his life insurance. In return, the insurance company safeguards you and your family against any unforseen risk. The most common types of life insurances are-

  • Term Life Insurance

    - It is the basic insurance type which covers the insured individual for a specific period of time. In case of death of the insured individual during that time period, the insured individual’s family will get a lump-sum amount. But if he survived, then no amount will be paid.
  • Whole Life Insurance

    - This type of insurance provides coverage to the insured individual for his entire lifetime. After the death of the insured individual, his family receives a certain amount of money.

 

General Insurance

General Insurance provides financial security against any losses other than death. A non life insurance covers losses against liabilities which includes- health, travel, car, bike etc. You need to pay the required premium to the insurance policy. And in return the insurance company will pay you the assured amount for medical treatment, damage of your car or bike etc.

Generally, the general life insurance is divided into following types-

  • Health Insurance

    Health Insurance is an insurance policy which safeguards the insured individual and his family against any disease or illness. The insurance company pays for the medical expenses (as per the insurance policy), in return you need to pay the premium and renew your health insurance. Certain health insurance policies covers regular medical check up, pre and post hospitalization, daycare hospitalization, critical illnes medical coverage etc.

    The different types of health insurance plans are-

    • Individual Health Insurance Plan

    • Family Floater Health Insurance Plan

    • Critical Illness Plan

    • Maternity Health Insurance Plan

    • Senior Citizen Health Insurance Plan

    • Personal Accident Cover

    • Preventive Healthcare Plan

    • Employee/Group Health Insurance Plan

  • Motor Insurance

    It is an insurance for your two-wheeler i.e, bike or car. This insurance provides protection to your vehicle against any accident, damage, theft etc. Its mandatory to have a motor insurance to ride on Indian road.

    The 2 types of motor insurance are-

    • Two-Wheeler Insurance

    It is an insurance policy which protects your bike from any accident or damage due to fire, natural calamity etc. The two wheeler insurance provides financial support to the insured vehicle, to the third party property, pedestrian and injury to the rider. Some add-on covers are also provided by the two-wheeler insurance policy.

    Following are the kinds of two wheeler insurance coverage-

    Comprehensive policy

    Third party liability cover

    • Car Insurance

    Today owning a car is not a method to show off your status, but rather its mandatory in today’s day to day life. Buying a car also involves the car insurance policy which safeguards your car and the third party from any unforseen accidents.

    Following are the coverages of car insurance-

    Third Party Liability

    Comprehensive Car Insurance

    Car Insurance Policy also provides some add-ons to its customers such as- Consumables Cover, Loss of personal belongings cover, Road side assistance cover etc.

  • Home Insurance

    Home is the safest place for every individual. Home insurance policy compensates the damage to your home caused by any natural calamity or any man-made threats. This policy covers the liabilities like- flood, theft or sabotage. It covers the financial protection to your home and also the valuables inside the property.

    The coverages under the home insurance includes-

  • Home structure insurance

  • Content Insurance

  • Standard fire and special perils policy

  • Public liability coverage

  • Travel Insurance

    Most people loves to travel all over India and also abroad. But travelling do involve many unforseen risks. Travel Insurance covers the financial risk arising out of non-medical and medical emergencies while travelling. This insurance policy covers the passport and trip cancellation, loss of baggage, delayed flights, loss of passport or any other medical emergencies.

  • Fire Insurance

    The damage caused to your food or property due to fire is covered under the fire insurance. Fire insurance covers liabilities like- loss caused to third party due to fire, damage caused to livelihood due to fire, replacement and repair expenses of the insured property and the properties surrounding it.

  • Personal Accident Insurance

    This insurance covers the medical expenses due to accidental death or any disability caused by personal accident. Personal Accident Insurance covers the compensation due to- impairment caused due to violent or any external means, bodily hurts. The mishappenings caused in road, rail or collision etc also falls under this insurance coverage.

    Personal Accident Insurance is divided into 2 parts-

    Group Accident Insurance

    Single Individual Accident Insurance+

 

Summary

In the above discussion, it is very clear that insurance policy is very important part of every individual. You can buy your preferred insurance policy in offline as well as online mode. Before buying any insurance, you should have a clear knowledge about the types and features of your preferred insurance. You also need to keep in mind that, you should always renew your insurance policy to continue enjoying the benefits of the insurance policy.