Insurance is basically a contract, represented by a policy, in which a policyholder receives financial protection or aid against undetermined losses from the insurance company. In the market, there are various companies providing certain insurance services which can be your protection against unexpected financial losses. But here we are providing you with every Insurance category and policy with one click. We have a strong team of Insurance experts who can analyze and compare the best policies according to your customization and requirement.
You can scroll down and gather some of the basic details about the various types of insurance policies and their features as well as the benefits of availing yourself of an insurance policy.
Types Of Insurance-
Health Insurance
In health insurance coverage, you have to pay a premium amount to the insurance company, and the company pays for the medical expenses of the holder like hospitalization, daycare, post, and pre-hospitalization, etc. Sometimes you might have to pay the bills first, and then get them reimbursed from the insurance company.
Life Insurance
Life Insurance is the financial security to your nominee after your life, the insurance company pays the beneficiary/nominee you select a set amount of money if or when you are no more in this world and that can help your family pay bills and cover living expenses.
- Term life insurance, which pays a benefit only if the insured person dies during the term of the policy (usually from one to 30 years).
- Another is whole life insurance, which pays a benefit whenever the insured person dies.
Home Insurance
Home Insurance covers your house and the personal assets inside in the house from loss or theft, it can also help to pay for repairs and replacement in the house. It can be very beneficial if you have rented out your property or house.
Automobile Insurance
Automobile insurance covers you from paying the full cost for vehicle repairs and medical expenses due to any accident. In India, it is mandatory to have auto insurance when operating a motor vehicle as it can be a safer side for yourself as well as others.
Features of Insurance-
- Insurance is a contract (policy) in which an insurance company economically covers the policyholder against losses from specific contingencies or unhappening.
- There are many types of insurance policies available with large numbers of Insurance companies providing, Life, health, home, and insurance.
- The basic components that make up most insurance policies are the deductible, policy limit, and premium.
- Insurance coverage can be provided for medical expenses, vehicle damage, property loss/damage, etc. depending on the type of insurance.
Components of an Insurance-
- Premium
An insurance premium refers to the amount that is paid by the policyholder for availing of an insurance policy. The insurance premium amount is determined by multiple factors and varies from one holder to another according to their customization.
- Policy Limit
A limit is the highest amount paid by the insurance company for a claim that your insurance policy covers. If you file a covered claim, your insurance policy will pay up to a reasonable amount of money.
- Deductible
A deductible is the proportion of the expenses that you have to pay out yourself before you can make an insurance claim. The insurance company will pay the claim amount only when the deductible amount is paid.
Benefits of Insurance Coverage-
- It provides financial support during crises.
- Provides assurance of good financial aid against the premium amount paid.
- Share the risk of the one who suffered the loss of someone or something.
- safeguards against undetermined and consequential losses.