You cannot expect anything in life. There are certain things that happen without our wishes. Some uncertain things make us happy, and some uncertain situations make us sad. Happy, uncertain things are a surprise gift from someone or something that immediately makes you happy. Uncertain sad things are meeting with an accident or a sudden fire in your house, etc. Due to some uncertain things, we suddenly face a money-loss problem. To aid in this situation, insurance companies were established.
Insurance is a formal contract between a person and an insurance provider. In this contract, the insurer guarantees to provide financial protection (sum assured) against unforeseen events in exchange for a fee (premium).
There are 2 Categories of Insurance:
Life Insurance: There are many types of life insurance policies in India, the following are the most common types of life insurance policies:
- Term Life Insurance
- Unit-Linked Insurance Plans
- Whole Life Insurance
- Endowment Plans
- Child Plans for Education
- Retirement Plans
General Insurance: Policies protect against risks that could harm a person’s health or some of his or her physical assets, such as a home or a car, among many other things.
- Health Care Insurance
- Automobile Insurance
- Homeowners’ Insurance
- Insurance against fire
- Insurance for Travel
Insurance works as a barrier to protect us from unforeseen circumstances. To make sure that everyone understands the importance of these financial safeguards, I will discuss the many types of insurance in this post in the simplest manner possible.
Let’s Understand Different Types of Insurance and Their Benefits:
Life Insurance
Insurance helps your family in your absence. If you die suddenly tomorrow, your family will be in need of financial help.
In case you do not buy a life insurance policy you should buy one as soon as possible there are many government and private health insurance providers available in India.
If you have insurance, they will not face any financial problems in your absence. A good amount of money will be paid to your family after your death as a death benefit, which will make them financially stable and strong.
Health Insurance
Health insurance pays for your medical bills when you’re not feeling well. It includes prescription drugs, appointments, surgeries, and other big hospital costs.
Many people don’t know deep information about health insurance there are two categories of health insurance policy that comes under IRDA. But you should always choose insurance after reading their policy completely.
I want to share with you our experience dealing with an insurance company. For unforeseen medical needs, my uncle purchased a health insurance policy, but it went in vain.
He was suffering from serious osteoarthritis and was admitted to the best orthopedic hospital in South Delhi, relying on an insurance policy.
The doctors diagnosed him properly and recommended a total knee replacement surgery. We spoke with the insurance provider, but they denied it, saying they only cover orthopedic surgery after a period of 2 years. My uncle was not aware that many major diseases are not covered immediately after buying a health insurance policy. They will be covered only after 3–4 years.
Since the hospital to which he was admitted was charging a huge amount for the surgery and the insurer did not help, we had to look for another affordable knee replacement hospital in South Delhi. Fortunately, we were able to find the best hospital as per our budget to get the knee surgery done, and today my uncle is fit and fine.
Car Insurance
Car insurance works as a protector for your car. In case you have an accident and your card gets damaged, you don’t have to worry if you have car insurance. The insurance company will help you repair your car. The Government of India has made it mandatory to buy car insurance. You cannot drive a car without car insurance, or else you might have to pay the penalty if caught by cops.
Two-Wheeler Insurance
Just like cars, bikes, and scooters have their own special insurance called two-wheeler insurance. Just like four-wheeler insurance, two-wheeler insurance is also mandatory in India. Some 2-wheeler dealers provide it by default with the bike or scooter. It provides protection against theft, accidents, and damage.
Home Insurance
Your house is protected by home insurance. It offers protection against property damage. Therefore, you won’t have to worry about paying for anything if something bad happens to your home. The structure of your home and its personal belongings can both be covered by home insurance plans.
Travel Insurance
When you go on a trip, especially to a faraway place, travel insurance works as your travel buddy. It helps if your luggage gets lost, you miss your flight, or you get sick on vacation. Travel insurance plans can include coverage for trip cancellations, medical emergencies, and even personal liability in case you accidentally damage someone else’s property while traveling.
Mobile Phone Insurance
The majority of smartphone users are unaware of or unwilling to get mobile insurance because it is a relatively new concept. Lots of smartphones are getting stolen, so it’s a good idea for owners to get insurance. It is especially important for expensive phones because thieves like to steal them a lot.
Crop Insurance
Crop Insurance helps farmers when bad weather or other problems make it hard to grow crops. It insurer pays them money to make up for the crops they can’t sell
Conclusion
Life insurance helps you when you get free treatment, it gives financial support to your family when you suddenly pass away. There are different types of policies for different types of protection car and bike insurance protect your vehicles if they get damaged.
Home insurance helps if something bad happens to your house. Travel insurance is like a buddy when you go on trips, and mobile phone insurance is for expensive phones that might get stolen. For farmers, crop insurance helps when things go wrong with their crops because of bad weather.
Although insurance helps us in the best possible way I would recommend you do know everything about the insurance before buying it. Read about all the applicable charges, offers, terms & conditions, and then decide to buy a plan. Being informed about the plan gives you the right benefit. Also, keep your family informed about health and life insurance.
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