INSURANCE AND ITS TYPES

Types

Insurance

Hello friends, How are you? Today we are here to discuss a very interesting topic. Yes guys the topic name is Insurance. As we all know that from Last two years COVID is not going back. In fact it is spreading their legs day by day. Every day we hear it’s increasing trend news and it’s new variants. It is impacting the people of every age groups. We don’t know we see our next day or not. So it is better to take a life Insurance which prevents our and our family future. I know that every people do not have proper knowledge about it. I am trying to give proper and complete knowledge about it. Guys, stay connected to our website nai-khoj.com to learn more about this topic.

What Is Insurance?

It is like an agreement between a person and the company and this agreement transfers all risk of that person to the company. To transfer their risk the person gives premium to company. This premium may be monthly, quarterly or half yearly. It is not for the Life of any person. It is mainly for non-living things like car, bike , bicycle, laptop, factory etc.

Risk and coverage

Assurance V/S Insurance

Most of us use these two words interchangeably. But these words have some difference. The term Insurance is used for life like we can say life Insurance. It refers to a coverage for the life of a person where as the second word assurance is used for the coverage of all the things except life. For both type of coverage we give premium to the company and company provide guarantee for the same. Both these words are legal agreement between a person and the company. One can file case against other if anyone of them are not working as per the terms and conditions. Both are protection against an unknown loss.

Insurer

The person or entity or company who provides Insurance or coverage against loss is known as Insurer. Insurer is one who is calculating risk.

Insured

Insured is the person who is covered by the insurer under a policy. This person receives coverage against unexpected loss and pay premium for this coverage on monthly, quarterly, half yearly, or yearly basis.

What Is Premium?

It is the amount that insured person pay to the insurer company to cover the loss. It is not necessary that only insured can pay this premium. Any family members can pay this premium in behalf of the insured. Premium may be monthly, quarterly, half yearly, or yearly basis but this is always be mentioned in the insurance contract.

Types Of Insurance

There are basically two types under which there are lots of types. These two types are life Insurance and general insurance.

What Is Life Insurance?

It covers life of a person. Some of these policies provide financial compensation after retirement. Life insurance, helps you to prevent your family financially at the time when you are absence. For this you have to pay premium to the company. In return, the company promises to pay an assured sum to your family in case of your death, disability or after a specified period of time.

Tax Benefits Of Life Insurance

It offers not only life well being but also tax benefit which are as follows-
The amount that we pay as premium it is deducted from our total taxable income. But not the entire amount. There is a limit for this deduction an that is a maximum of Rs 1.5 lakh, under Section 80C of the Income Tax Act.

What Is General Insurance?

It is also a contract that offers financial compensation on any loss other than end of life. It covers everything but not life. This type of insurance compensates you for financial loss due to miss happening in house, car, bike, health, travel, etc.

What Are The Types Of General Insurance ?

We can take coverage for anything under this types but the major thing which are covered under this are as follows-

Insurance

1) Health Insurance

This type of insurance covers the cost of medical expenses. It reimburse the amount that we pay for treatment of any injury or disease or illness. It basically covers: Hospitalization, The treatment of critical disease, Medical bills prior to or post hospitalization, Day care procedures like Cataract operations.

2) Motor Insurance

This type of insurance covers your car, bike, or bicycle in case of accidents, damage, theft, fire or natural calamities.

3) Travel Insurance

It compensates for any financial liability that is arising out of medical and non-medical emergencies during travel to abroad or within the country. It basically covers: Loss of baggage, Emergency medical expenses, Loss of passport, Hijacking, Delayed flights, Accidental death.

4 ) Home Insurance

Home insurance compensate for damage of your home due to natural calamities, man-made disasters or other threats. It gives coverage for loss due to fire, burglary, theft, flood, earthquakes, and sabotage. In spite of providing financial protection of home it also takes care of the valuables inside your property.

5) Fire Insurance

Fire insurance compensates for the damages of your property or goods due to fire. It provides coverage for the replacement, reconstruction or repair expenses of the insured property and also the surrounding structures. It also provide coverage of damage caused to a third-party property due to fire.

IRDA

It is stands for Insurance Regulatory and Development Authority of India. It is a regulatory body under the jurisdiction of Ministry of Finance, Government of India. The Maine purpose of IRDA is to safeguard the interest of the policyholders and also ensure the growth of insurance sector in the country. IRDA not only regulate life insurance, but also general insurance.

Conclusion

We all know that now a days lots of natural miss happening are going on. We don’t know the person to whom we are talking, we will talk to next day or not. These days cases of theft, accident, fire, Earthquake, flood and unexpected disease are also increasing. To safe our and our family life and our valuables now its become necessary to take insurance. I hope all your doubt relating to this topic will resolve after reading this article.

Query And Suggestion

So guys if you have any kind of query or suggestions regarding to this article then feel free to drop a message in comment box. I will definitely resolve your all queries and will work on your suggestions. It is not necessary that you drop message in comment box only in case of query and suggestion. You can drop message regarding your personal experience about this article after reading it.

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