Insurance and Types Explained.

Insurance and Types Explained
Insurance and Types Explained.


What is the meaning of insurance ? 

An arrangement by which a company or the state undertakes to provide a guarantee of compensation for speech weight loss damage illness or death in return for payment of a specified premium.


Types of insurance.

Now let's see which are the different types of insurance. 
There are two types of insurance first is life insurance and the other is general insurance or non-life insurance. 



Types of life insurance

Term Insurance

Now types of life insurance first is term insurance it is the pure insurance form it pays your nominee it is sum insured in case of your demise within the policy term it does not have any sum assured or maturity amount premium is very low. 

Endowment plans

Second is Endowment plan these plans are these are insurance and investment plan a certain portion of the premium is paid for protection of the life and rest amount is invested in law risk that is so at the time of maturity the insured person gets a predefined amount 


Unit linked Insurance Plans

third is unit linked insurance plans these are newly introduced plans a couple of decades ago they were launched ULIPs offer life protection as well as the opportunity for capital appreciation by investing in various funds of varying degree of risks. 

Just like endowment policy, in you lives a certain portion of the premium goes in providing life cover. They generally invest in equity market therefore the return is not predefined, it depends on the market return it has certain lock-in period. Say three years or five year up to that time you cannot withdraw the insurance. 


Types of General Insurance

Then we come to the general insurance, types of general insurance. 

Health Insurance

The first and the important is health insurance a general health insurance plan is an indemnity plan that pays for hospitalization expenses up to the summit short while you can avail a standalone health policy family flow to plan provide coverage to all the members of your family.

Motor Insurance

Next is motor insurance, motor insurance covers your vehicle against accident damage theft vandalism and so on the form of insurance comes in two forms comprehensive and third-party completes you covers 360 degree of your car when a third party gives you protection from third party damages happen to do to your vehicle.

Home Insurance

Then the home insurance our home insurance policy protects your home and it its belongings from the damage suffered due to man-made or natural disasters some home instances insurance policies also provide coverage for temporary living expenses in case you are leaving your rent due to your home undergoing the renovation. 


Travel Insurance

Then one other important insurance general insurance policy is the travel insurance policy a travel insurance policy.

see you against losses suffered due to loss of damage Begich delays in flights and trips cancellation when you are travelling abroad in some cases if you are hospitalized while traveling our travel insurance may also offer cashless hospitalization.




Life Insurance and General Insurance.

Now the difference between life insurance and general insurance.
 
  • Life insurance is an insurance contract with covers the life risk of the person insured whereas the general insurance is anything which is not covered.

  • Under life insurance like motor house health etc they are general insurance life insurance is a form of investment whereas general insurance is only a contract of indemnity.

  • Life insurance is for short or long term whereas general insurance is short term for say for two months one year or three years in life insurance premium has to be paid over the year however in general insurance premium has to be paid on lump sum a life insurance amount is paid either on the occurrence on of the event or on maturity whereas in the journal insurance losses reimbursed or liability will be repaid on the occurrence of uncertain events.

  • In life insurance must be present the insurable interest must be present at the time of contract whereas in general insurance the interest must be present at the time of her contract as well as at the time of loss and the last day's policy value.

  • life insurance it can be done for any value based on the premium policy whereas into general insurance the amount payable under the life inch under the insurance contract is to the actual loss suffered so the maximum amount you get is the loss happened.