What is the Definition of Insurance?

Insurance is a legal contract between a person and an insurance business in which the insurer promises to provide financial protection (Sum guaranteed) against unforeseen events for a certain price (premium). The many types of insurance plans available today may be grouped into two groups :

  • Life Insurance
  • General Insurance

1. General Insurance

Some of the kinds of general insurance offered in India are as follows :

  • Health Care Coverage
  • Automobile Insurance
  • Homeowners’ Insurance
  • Insurance against fire
  • Insurance for Travel

2. Life Insurance

Life insurance comes in a variety of forms. The most prevalent types of life insurance policies offered in India are as follows :

  • Term Life Insurance
  • Unit-Linked Insurance Plans
  • Whole Life Insurance
  • Endowment Plans
  • Child Plans for Educations
  • Retirement Plans

Let’s take a closer look at the many kinds of insurance policies :

General Insurance

General insurance plans are one of the types of policies that provide coverage in the form of sum assured against damages besides the policyholder’s demise. In general, general insurance refers to a variety of insurance plans that provide financial protection against losses caused as a result of liabilities such as a bike, automobile, house, or health. The following are examples of several types of general insurance policies :

Health Care Coverage

Health insurance is a form of insurance policy that covers the costs of medical treatment. Health insurance policies either cover or repay the cost of treatment for any included disease or injury. Various forms of health insurance cover a wide range of medical bills.

It typically provides defence against :

  • Inpatient care
  • Critical illness treatment
  • post-hospitalization medical bills
  • Procedures for day-care

A few types of health insurance policies also cover resident care and pre-hospitalization costs. The following are some of the several types of health insurance policies available in India :

1) Individual Health Insurance

Provides coverage to a single person.

2) Family Floater Insurance

This type of insurance allows your complete family to be covered under one policy, which often includes the husband, wife, and two children.

3) Critical Illness Coverage

A sort of health insurance that covers a variety of life-threatening illnesses such as stroke, heart attack, renal failure, cancer, and other comparable conditions. When a policyholder is diagnosed with a serious illness, they get a lump sum payment.

4) Senior Citizen Health Insurance:

These insurance policies are designed for people over the age of 60.

5) Group Health Insurance

This is a type of insurance that a business provides to its employees.

 

Also Read: Discover the untapped potential of tax concepts in life insurance for unparalleled financial security.

Automobile Insurance

Motor insurances are forms of insurance that provide financial help in the event that your automobile is involved in a crash. In India, there are several types of motor insurance coverage available, including :

1) Car Insurance

This plan covers privately owned four-wheelers. There are two kinds of automobile insurance plans: third-party insurance and extended coverage policies.

2) Bike Insurance

These are forms of automobile insurance that protect privately-owned two-wheelers in the event of an accident.

3) Commercial Vehicle Insurance :

A sort of automobile insurance that covers any vehicle utilized for commercial purposes.

Homeowners’ Insurance

A homeowner’s insurance, as the name implies, provides full coverage for the belongings and infrastructure of your property against physical destruction or damage. In other words, house insurance protects you from both natural and man-made disasters such as fire, earthquake, tornado, burglary, and robbery.

The following are examples of several types of house insurance policies :

1) Home Building Insurance

Serves to protect the house’s foundation from destruction in the event of a disaster.

2) Public Liability Coverage

Protects the insured residential property from any harm caused by a visitor or third-party while on the premises.

3) Standard Fire and Special Perils Policy

Protection against fires, natural disasters (e.g., earthquakes, landslides, and storms, and floods), and anti-social human-caused activities (e.g., strikes, and riots)

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