Insurance is the future planning for uncertain risks occurs without any invitations. It gives protection to the business or individual from the risks and makes your life safe from several contingencies. Insurance helps to cover up your financial uncertain loss comes in your business. There are several types of insurance including life and general insurance and you can get all the details below.
Insurance is a legal contract between the two parties Insurer (company) and the insured (individual), for providing compensate for the financial loss due to insured contingencies and getting premiums in returns by the individual. It is also known as risk transfer machine which helps insured person to cover his risk from the insurer.
The agreement contains the appropriate amount up to fixed price which insurer will pay if individual suffers financial losses due to contingencies.
Now, everything you use can be insured by the insurance company whether it is a cell phone or any other product or even you.
Working process of Insurance Company
Well, insurance company works with the premium paid by the individuals for the specific period of time. Many of you already experienced insurance for your vehicles or any other products. You come in the contract with the insurance company for the specific amount which you pay as premium to get the benefit of uncertainties. If your insurance duration is 1 year and you don’t get any loss to your business or the product then you cannot claim your insurance.
Now, you are well aware of insurance company as they only supports you on your loss and is also the helping hands for business man. The main reason for getting insurance is to make yourself safe form the uncertain risks.
Types of Insurance Policies
There are numerous types of insurance policies but Indian Companies mostly deals with the given insurance Policies:
- Life Insurance
If you are the only person earning in your family and there is not any backup then how do they survive? Maybe you get all about life insurance but it helps a lot to your loved one to survive independently.
Life insurance gives the decided amount to the nominee after the death of the insured person. The amount may depend upon your insurance plan as many plans gives Lakhs or Crores benefits if something happened to the insured person. If you are the only source of income or want someone in your life get financial benefits then you can definitely go with the life insurance policies.
- Health Insurance
As per the name Health Insurance means insurance to relate to health of the person maybe it is you or your loved once. There are several types of health insurances like Individual health insurance, family floater health insurance, critical illness health insurance coverage that can protect you from financial crisis during emergencies.
- Motor Insurance
Motor Insurance is compulsory for every vehicle in India. If you buy any vehicle, you have to make insurance as per your vehicle on the yearly basis and renew it until you use the vehicle. According to Motor Vehicle Act, every single vehicle which is running in the road should have insurance whether it is two wheeler, four wheeler or commercial vehicles. It gives you accidental cover and also covers damagers.
- Accident and Disability Insurance
Uncertainty comes anytime and accidents are unexpected and are inevitable. Accident and disability insurance provide you safety with the uncertainty and you will be financially stable if you get disables with the accident. It is good for your family too if they don’t have any source of income.
- Home Insurance
Home insurance is for home safety from fire or any other disasters. If you are living in disaster prone areas then, it’s best for you to have insurance for your home. It covers losses and damage which occurs during events and the best solution to help you in this situation.
- Standalone Critical illness Insurance
Critical illness insurance plan is not so necessary if you don’t have any critical illness. Problems of Critical illness covered with this insurance plan and the benefit is given to the individual.
- Travel Insurance
Travel insurance is mostly considered by the travelers. If you are a traveler and mostly travels here and there then you should consider travel insurance. It protects you form any kind of medical emergencies and you can save a lot as every expense covers in it.