Insurance
Insurance is a policy representing a contract in which an individual or entity receives financial protection from the insurance company against any losses.
An insurer, or insurance carrier, is a company selling the insurance; the insured, or policyholder, is the person or entity buying the insurance policy. The amount of money to be charged for a certain amount of insurance coverage is called the premium. The insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insured will be financially compensated.
Type of Insurances:
- Life Insurance : Life insurance is taken primarily to secure oneself and/or one’s family when the ability to earn is less or provide for the dependents when the insured is either deceased or unable to earn a livelihood.
- Health Insurance : Health insurance covers the cost of medical and surgical expenses incurred by the insured individual. It provides financial protection against various health-related risks, such as illnesses, injuries, and hospitalizations.
- Term Plan Insurance : Term insurance plan is a form of life cover, it provides coverage for a defined period of time, and if the insured expires during the term of the policy then death benefit is payable to nominee.
These policies are available in the range of 10-30 years term and are relatively cheaper than endowment policies, money back policies and ULIPs. It enables you to secure your family financially, by offering a high life insurance cover amount for a relatively low premium payment. You can pay these premiums regularly, or at one go, depending on the insurance policy you choose. The benefits in a term insurance policy can be availed only in the event of the death of the insured.