What is insurance and types of insurance

Insurance is protection from potential risks everyone’s life and property, death, disability, and destruction are all suffering around at risk.

The main purpose of insurance is to protect against the risk of this.

What is insurance?

Insurance is a means of avoiding potential risks. Insurance is an agreement between two parties in which the insurance company agrees to compensate the insured.

They charge a fee to cover this loss, called a premium.

The agreement is made in a legal manner so the government fully cooperates with it and also mediates.

How does insurance work?

The applicant and the insurance company enter into an agreement. This agreement is a legal one. Therefore, the applicant has no difficulty in getting his compensation.

When an applicant applies for insurance, he is told some of the terms of the insurance policy.

Under this policy, the insurance company assures that if the applicant pays the premium for a certain period of time, the applicant can avail of the benefit.

Insurance is a way to protect yourself and your family from financial loss. Any person or company can buy insurance coverage.

However, insurance companies do not offer insurance coverage to every applicant, as they also examine certain criteria when insuring. The insurance company evaluates the claim application for decision-making.

Type of Insurance

If we are in fact, there are two types of insurance protection. But now new types of insurance are growing. In this article, we will learn about all types of insurance.

What is insurance

They are as follows

  1. Life insurance
  2. General Insurance

Life Insurance

From the name, you may have noticed that this insurance is all about life.If you have a sudden pass or disability under this insurance plan, you buy this insurance to ensure that your family is economically safe.

If you are employed, certainly will depend on your family on your salary.In the same time, if you have some disabilities or suddenly die, then your family will have to face a lot of financial conditions.

This insurance plan is definitely beneficial for the employee so that such a financial situation does not get worse.

Suppose you have purchased a life insurance plan and filled in the time premiums amount.

If you have not died in a given period Or have not been disabled. So you get the premium paid by you and with the same amount in an insurance policy.

General Insurance

  • An agreement between the policyholder and insurers which considered. Only after the realization of the premium, it means the specific amount.
  • The premium is paid by the insurers who have a financial interest in the assets covered.
  • The insurers will protect the insured from financial liability in case of loss.

Health Insurance

Health insurance plans have many benefits. Health insurance covers include an accident, illness, or the expenditure facility for some serious illnesses.

Many health insurance cover companies spend all the lentils from recruitment in the hospital.

Some government insurance companies are working.

The Government of India is a gift to workers through an ESIC insurance policy.

Travel Insurance

This insurance is for you if you are a go on a foreign tour or go for official work.

Foreigner if you come to this problem

  1. Medical emergency conditions
  2. luggage losses
  3. delayed / cancellation of flight
  4. emergency residence
  5. emergency residence
  6. losing basic medical treatment
  7. loss of important documents and many other basic items are included in travel insurance policies.

Vehicle Insurance

This is a good thing for all car owners. If a motor, car, and two-wheeler train accident occurs, all costs can be recovered.

  1. Auto insurance is the insurance of cars, trucks, motorcycles, and other road vehicles.
  2. The main purpose of this is to provide financial protection against physical injury or bodily injury caused by a traffic collision and liability arising from a vehicle accident.

Marine Insurance

Living at sea is very dangerous. There are a lot of ship accidents while traveling at sea. Both human and financial losses are also involved in these accidents.

Marine insurance provides coverage protection.

Home Insurance

Everyone has a dream, a home of their own.It is just as important that we build a house after overcoming all kinds of difficulties and then protecting it.

This plan protects the home.

Commercial Insurance

This insurance is for companies, warehouses, shops, malls, factories and vehicles.It is also the main use of it to protect real estate or property.

Education Insurance

The government has paved the way for students to pursue higher education in which they can complete their higher education by taking out some amount of loans.

There is also a provision in the insurance scheme to complete your education by going abroad.

What are the benefits of insurance plans?

There are many benefits of insurance are the following. Insurance is the individual, professional, and social benefits.

IndividualBusinessSociety
Provide Security & SafetyShifting of riskCapital Fornation
Encourage SavingAssuring Expect profitGenerating Employment Opportunity
Provide Investment OpportunityImprove credit standingHelp Controlling Influation
Business ContinuationPromoting Social Welfare
Insurance Benefit Briefly Chart

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