What is Insurance Policy? Insurance Types in India

What is Insurance Policy? Insurance Types in India

Unplanned costs are the bitter reality of life. Even when you think you are at your own expense financially, this security can be greatly disrupted suddenly or unexpectedly. Depending on the emergency limits, such instances can make it excellent.

Although he cannot plan for the contingencies derived from these events, an insurance policy gives an idea to help reduce the financial obligations of unforeseen events. There are individual insurance policies, each of which aims to protect an assumed aspect of your health or property.

What is Insurance Policy? Insurance Types in India:

Life Insurance
Travel Insurance
Property insurance
Motor insurance
Health insurance
Cycle insurance
Bite-size insurance
Mobile Insurance

Knowing just multiple insurance policies doesn’t help. Instead, you should know how each of these plans works. Without adequate knowledge of each of them, he may not be able to protect his finances and the financial well-being of his family members. Read more to find out what you need to know about multiple insurance policies.

  1. Life Insurance:

Life insurance refers to the policy or protection with which the insurer can guarantee financial independence for the family members after death. They are family members with their income, supporting their partner and their children. In such a situation, his death will destroy the entire family financially. A life insurance policy ensures that if he dies, it does not happen when he provides financial support to his family.

Types of Life Insurance Policies:

When it comes to life insurance, there are specifically seven different types of insurance policies. Here it is:

Term Plan: The death benefits of a time plan are available only for a fixed period, for example, 40 years from the date of purchase of the policy.
Signature Plan: An entry plan is a life insurance policy in which a share of its cousins ​​enjoys the death benefit. At the same time, the supplier invests the balance amount for the insurance company. Termination benefits, death benefits, and periodic bond elimination policies offer several types of assistance.

Like an insurance plan related to a unit or a ULIP endowment plan, a portion of its insurance cousin goes into mutual fund investments, while the rest goes toward its benefits on death.
Whole Life Insurance: As the name implies, this policy provides life insurance for an individual’s life rather than a fixed period. Some insurance companies may limit the whole life insurance term to 100 years.

Children’s plan: Investment policy provides financial assistance to your children throughout their life. Death benefits are available through global payouts after the parents’ death.
Money-back: Such policies pay a fixed amount of the sum insured plan at regular intervals. This is known as the benefits of existence.

Pension Plan: Also known as a pension plan, it combines the investment of policy and insurance. A portion of the premium will form a pension fund for the insured. It is a global or monthly payment to Life Assured after retirement.

  1. Health Insurance:

Health insurance refers to general insurance that provides financial assistance to insured people in hospitals. In addition, some plans also cover the cost of maintenance that remains on the home before or after the holidays. With the rise in medical inflation in India, it has become necessary to buy health insurance. However, consider India’s many health insurance plans before you continue shopping.

Types of Health Insurance Policy:

There are eight main types of health insurance policies available in India; they are:

Individual Health Insurance: This medical care plan only provides medical protection to the insured.
Family Float Insurance: This policy allows you to get health insurance for your entire family without buying separate packages for each member. Health protection is generally allowed to her husband, wife, and children under one of the family policies.

Critical disease closure: This special health plan provides comprehensive financial assistance to the insured to diagnose specific chronic diseases. Unlike normal health insurance policies, the plan pays out directly after this diagnosis.
Senior Health Insurance: As the name implies, this policy is exclusively for a complete person of 60 years or more.

Group health insurance: Such policies are usually offered to an organization or company employees. They are designed so that old beneficiaries can be eliminated, and new beneficiaries can be added as per the retention capacity of the company’s employees.
Maternity Health Insurance: This policy covers medical costs during the antenatal, postpartum, and shipping. Includes newborn mother and child.

Personal Accident Insurance: This health insurance policy only covers financial liability due to accidents, disabilities, or financial liabilities that resulted in death.
Preventive Medical Care Plans: The policy covers maintenance costs associated with preventing disease or serious conditions.

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