Insurance is a financial product that provides you protection from unexpected events. It is very important not only for personal protection but also for business protection. There are many types of insurance and each has its own importance and use. In this article we will discuss in detail about different types of insurance.
Type of Insurance
Here we are going to tell you about 10 types of insurance, let’s start:
1. Life Insurance
Life insurance is a type of insurance that provides financial assistance to the family of the insured person after his death. This insurance policy covers the risk of the life of the insured person. The main types of life insurance are as follows:
- Term Life Insurance: This policy is for a fixed period and the amount is paid only when the insured person dies during this period.
- Whole Life Insurance: This policy is for a lifetime and the premium amount is fixed in it.
- Endowment Policy: In this policy the amount is paid on the death of the insured person or on completion of a fixed period.
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2. Health Insurance
Health insurance is a type of insurance that covers medical expenses. This insurance policy covers the expenses of hospitalization treatment and other medical services of the insured person. Following are the main types of health insurance:
- Individual Health Insurance: This insurance policy covers the medical expenses of an individual.
- Family Health Insurance: This insurance policy covers the medical expenses of the entire family.
- Mediclaim Policy: This policy covers hospitalization expenses.
3. Motor Insurance
Motor insurance is a type of insurance that provides protection in case of damage or accident to vehicles. This insurance policy is of two types:
- Third Party Insurance: This insurance policy covers only third party damages.
- Comprehensive Insurance: This insurance policy covers both vehicle’s own damages and third party damages.
4. Home Insurance
Home insurance also known as house insurance is an important measure to protect your home and the property in it. This insurance plan is a means to protect you from losses during unforeseen events such as fire, earthquake, storm, flood, theft or other natural calamities.
Different home insurance plans are available according to your requirement and budget. Some insurance companies cover only damage to the building structure while other plans also insure the items inside the house. For example furniture, electronics, jewellery and other expensive items can be insured.
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5. Travel Insurance
Travel insurance is the security cover that makes your trip safe and worry-free. Whenever we go on a trip we may have to face many unexpected events. Such as health problems, lost luggage, flight cancellation, etc. In such a situation travel insurance becomes important for us.
There are many types of travel insurance such as individual travel insurance, family travel insurance, business travel insurance and travel insurance for students. Each type of insurance is designed keeping in mind different needs and risks. It includes cover for medical expenses, accident, lost luggage, trip cancellation, and other unexpected events.
6. Business Insurance
Business insurance is a type of insurance that covers risks associated with business. This insurance policy is of different types such as:
- Property Insurance: This insurance policy provides protection against damage to the property of the business.
- Liability Insurance: This insurance policy covers legal liability for damage caused by the business.
- Interruption Insurance: This insurance policy covers financial losses caused due to interruption in the business.
7. Agriculture Insurance
Agriculture insurance is a type of insurance that provides protection to farmers against crop loss. This insurance policy covers crop losses caused due to natural calamities, pest attacks, drought, etc.
8. Education Insurance
Education insurance is a special type of insurance that provides financial security for children’s education. This insurance plan helps cover the cost of children’s higher education whether in the absence of parents or in times of financial crunch.
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Benefits of Education Insurance
- Financial Security: Education insurance plans provide funds for children’s education in case of death or disability of parents.
- Waiver of Premium Payment: Some plans do not require premium payment after the death of the policyholder and the plan continues.
- Protection with Investment: Education insurance plans combine the benefits of insurance with investment. This plan helps in increasing savings over time.
- Tax Benefits: Education insurance offers tax benefits to policyholders under Section 80C and 10(10D) of the Income Tax Act.
9. Personal Accident Insurance
Personal accident insurance is a type of insurance that covers bodily harm caused due to an accident. This insurance policy covers death, permanent or temporary disability etc. caused due to an accident.
10. Pension Insurance
Pension insurance is a type of insurance that provides regular income after retirement. This insurance policy meets the financial needs of an individual after retirement.
Conclusion
The importance of insurance has increased immensely in today’s time. It not only provides financial security but also provides protection against unforeseen events. Different types of insurance policies are important for both individuals and businesses. It is necessary to choose the right insurance policy so that you and your family can remain safe and protected.
Also Read: What is the Basic Concept of insurance?
Faqs
What are the benefits of life insurance?
The following are the major benefits of life insurance:
- Financial security of the family
- Money for children’s education
- Help in paying off loans
- Source of income after retirement
How many types of life insurance are there?
There are mainly two types of life insurance:
- Term Insurance: It is for a fixed period.
- Endowment Plan: It is a combination of both insurance and investment.
- Health Insurance
What is health insurance?
Health insurance is a type of insurance policy that covers medical expenses. It includes the cost of hospitalization, medicines and treatment.
What are the benefits of health insurance?
The benefits of health insurance are as follows:
- Protection from high medical expenses
- Facility of cashless treatment
- Tax benefits
- Facility of health checkup
Does health insurance cover all diseases?
No, not all diseases are covered by health insurance. Some diseases that are pre-determined or occur in the early stages of the policy are not covered. Also cosmetic surgery and alternative treatments are also usually not covered.
