Insurance is a contract, which represented by a policy, in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. The company pools clients’ risks to make payments more affordable for the insured.
Insurance policies are used to hedge against the risk of financial losses. That may result from damage to the insured or her property or from liability for damage or injury caused to a third party. (Source)
Types of Insurance
Life Insurance can be defined as a contract between an insurance policy holder and an insurance company. Where the insurer promises to pay a sum of money in exchange for a premium, upon the death of an insured person or after a set period. Here, at Life Insurance Company, you pay premiums for a specific term and in return, company provide you with a Life Cover. This Life Cover secures your loved ones’ future by paying a lump sum amount in case of an unfortunate event. In some policies, you are paid an amount called Maturity Benefit at the end of the policy term.
A health insurance policy serves as a financial cover for unforeseen medical expenses. With a health insurance policy, you and your insurance provider have an agreement that in the case of a medical emergency, the policyholder will be covered financially by the insurer. As with any kind of insurance, health insurance is an investment made over time with the goal of continuing your coverage in order to protect your hard earned savings from being expended on medicines, ambulance rides, hospitalization, doctor consultations and more.
Leaving with family for a weekend getaway? Just think of all the assets you possess like your home, car, jewelry and other valuables. What if you lose all of it due to some fire, theft or a natural calamity? It would be all gone even before you might think about saving it.
Safety is the prime concern and avoiding any mess falls as the next. At times, you might end up facing some unexpected losses for which you were completely unaware. What then? Do you definitely look for some security system? Or just leave things on destiny?
Well! Nothing would work except a security system that backs us. In other words, we need an insurance cover.
“To insure is to protect and indemnify. It does not mean Prevention of loss”. (Source)
Types of General Insurance In India
- Travel Insurance
- Motor Insurance
- Marine Insurance
- Home Insurance
- Commercial Insurance