Nowadays, as we all know, insurance is an essential part of our lives, which plays a critical role in the security of our lives and securing our money. In the present time, there are lots of people who make insurance on different types of products and even themselves to protect themselves from other kinds of losses due to fear of losing money.
What is insurance?
It is a service for our safety designed by companies to provide a measure of protection to us. It is also a product designed to protect our beneficiaries financially. So insurance is also called our safety protection for life health etc.
In India, most people are not aware of insurance of any type just because they don’t know about insurance. They have a lack of knowledge about it. They don’t know the benefits or the advantages of taking insurance from a company. They don’t know how to take it.
They don’t know what to do and continue it tilltheirr death if they don’t know how their family knows about it. So firstly, India should be aware of insurance policies after that more and more people want to take advantage having of insurance policies for their health or life.
Types of insurance: –
LIFE INSURANCE – Life insurance is a contract between the Insurer and the Policyholder in which the insurer gives a guaranteed death payment benefit because they know that if they don’t take and provide a guarantee and don’t take that risk, in that case, no one is ready to take an insurance policy for him or her and their family.
EXAMPLE – As we pay a sum of money called a premium to the insurer and many parts of our beneficiaries used by a family member, they get a lump of money called the death benefit. You should only buy life insurance when someone requires you for financial support.
When no one is ready for financial aid, you don’t need to buy it because in case if we don’t have money to pay the insurer or company as a policyholder, in that case, the person who is our financial support can help us. We will settle with the help of him or her.
An insurance company seitsheir life insurance in many types.
1. Term Life Insurance – Term life insurance is also called pure life insurance. According to this insurance, the nominee family member will be paid after the death of a specific person in the family who’s the owner and depositor of the insurance.
2. Endowment plan – These types of insurance are paid at the age of between 45 years to 60 years. It is produced as your health is a critical illness. This type of insurance pays you unlimited money or maybe in the limps of cash in their amount.
3. ULIP – ULIP is also called the Unit Linked Insurance Plan. It is a very famous life insurance plan because it combines both saving and protection programs into a single project.
4. WHOLE LIFE POLICY – A whole life policy is also called a Single life or Ordinary life insurance plan. This type of insurance guarantees that you have to pay the amount of insurance for the whole life.
5. MONEY BACK POLICY – It is a very famous life insurance policy in India. It provides the insurance for five years in 12 installments.
NON-LIFE INSURANCE
Health Insurance and General Insurance come in Non-Life Insurance.
1. Health insurance – Health insurance is insurance in which the company pays from our side in case of an accident of a person or injury of a person. At this time, insurance companies have to pay and provide the best treatments. It has different types of plans which cover other treatments like hospitalization, senior citizen health insurance, etc.
2. General Insurance – It is a type of non-life insurance. There are many types of insurance in this insurance, like Fire insurance, car insurance, bike insurance, home insurance, etc.
INSURANCE STATISTICS –
(a) INDIA POSITION –
– life insurance on 10th position.
– The share of life insurance in 2015 is 2.24%.
– Non-life insurance is in 18th position.
– The share of non-life insurance was 0.75% in 2015.
(b) REGISTERED INSURANCE COMPANY –
– life insurance – 24
– General insurance – 24
– health insurance – 5
– Reinsurer – 1
FIRST-PARTY, SECOND PARTY, and THIRD PARTY are also types of insurance.
There are more benefits of insurance if we take insurance then we don’t need to be tense after our death because if we are in an accident the case company gives us to claim and our family members get money.
So, everyone should benefit from insurance and save our lives or save our money or from health insurance save our money we don’t need to invest money in hospitalsto treatg us because the company gives us treatment if we have insurance.
