What Are The Types of Insurance Policy?

Insurance policy is an effective weapon to deal with the possibility of any loss in future. We do not know what will happen tomorrow, so we try to cover the possible loss in future through an insurance policy.

1. Insurance and investment

Insurance means protection against risk. If an insurance company insures a person, then the insurance company compensates for the financial loss caused to that person. You must understand the difference between investment and insurance. Insurance is there to protect your uncertain future, whereas investment is made according to the use of your savings in the future.

2. Damage compensation

If the insurance company has insured any person, car, house or smartphone, then in the event of its breakage, breakage, loss or damage, the insurance company gives compensation to its nominee according to the pre-determined condition.

3. Insurance is actually a contract

Insurance is actually a contract between the insurance company and the insured. Under this contract, the insurance company takes a fixed amount (premium) from the insured person and pays compensation to the insured person or company in case of any loss as per the terms of the policy.

How many types of insurance?

Generally there are two types of insurance. Life insurance and general insurance. The meaning of life insurance is that on the death of the person buying the insurance policy, his dependent gets compensation from the insurance company. If the head of the family dies untimely, it becomes difficult to run the household expenses. It is necessary to take a life insurance policy to protect the wife/children/parents etc. of the head of the family from financial crisis. In financial planning, first of all a person is suggested to buy a life insurance policy.

1. General insurance

General insurance includes all vehicles, houses, animals, crops, health insurance etc. Home Insurance If you insure your house with a general insurance company, then your home is protected in this. After buying an insurance policy, if there is any kind of damage to your house, then the insurance company gives the damages.

2. Vehicle insurance

In India, it is very important to insure any vehicle plying on the road according to the law. If you drive your vehicle on the road without insuring it, then the traffic police can fine you. According to the motor or vehicle insurance policy, the insurance company gives compensation for any damage caused to the vehicle. If your vehicle is stolen or due to an accident, then a vehicle insurance policy can help you a lot.

3. Auto insurance benefits

You get the most benefit of a vehicle insurance policy when your vehicle has caused injury or death to a person. It is covered under third party insurance. If you also have a two wheeler / three wheeler or car, then it must be insured.

4. Benefit from health insurance

Nowadays the cost of treatment is increasing very fast. On taking health insurance, the insurance company covers the cost of treatment in case of illness. Under the health insurance policy, the insurance company pays the amount spent on the treatment of any kind of disease. The limit of expenditure on any illness depends on your health insurance policy.

5. Benefits of travel insurance

Travel insurance covers damages that occur during a trip. If a person goes abroad for some work or for travel and he gets hurt or the goods are lost, then the insurance company gives him compensation. Travel insurance policy is valid from the beginning of your journey till the end of the journey. Different insurance companies may have different conditions for travel insurance policies.

6. crop insurance

According to the existing rules, every farmer taking an agricultural loan is required to buy crop insurance. Under the crop insurance policy, in case of any damage to the crop, the insurance company gives compensation to the farmer. Under the crop insurance policy, compensation is given by the insurance company in case of crop failure due to fire, flood or due to any disease.

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