Today, many people have got or want to get life insurance, and they are very aware about it. But there are many people who are not fully aware about it. Today in this article what is insurance? We will try to know how many types it is and how important it is to get insurance.
Money is very important in today's economic age. We make small savings in our life so that our savings money can be useful for us and our family in difficult times.
But who has seen the future? Who knows when what kind of accident may happen to whom and all the money of our savings can be squandered in a jiffy. In such a situation, insurance is such an investment which can be useful for our family members if not for us. In such a situation, the entire responsibility of these accidents is handled by the insurance companies.
In such a situation, everyone should take out a part of their small savings and invest in insurance. So that we can avoid any kind of financial loss due to any kind of accident and can also keep our future or our family's future safe. So, in today's article, we know in detail what we are and how many types it is, as well as which insurance we should invest in.
What is Insurance?
Insurance means a contract or guarantee, which is mainly used for the risk of economic loss. Unlike paying a small premium to the insurance company, full responsibility for future damages, such as loss of vehicles, loss of health, damage to property, loss of goods, theft or death and more accidents is handled by the insurance companies and They get better compensation to compensate for accidents.
Human society has been facing natural calamities and accidents from the very beginning. During the fight against nature, ancient people developed insurance ideas to deal with disaster accidents.
How does insurance work?
Whoever takes insurance, they get a legal contract, which is called an insurance policy. In the insurance policy, complete information is given about the conditions and circumstances under which the insurance company will pay the sum insured to the insured person or the nominee.
As I mentioned earlier, insurance is a way to protect yourself and your family from financial loss. Generally, the premium is very less in terms of money paid for a larger insurance cover. The insurance company takes the risk of providing a high cover for a small premium as there are very few people who actually claim the insurance. This is the reason why you get insurance or insurance for a large amount at a low cost.
Any person or company can take insurance from the insurance company, but the decision to provide insurance rests with the insurance company. The insurance company will thoroughly evaluate your application to make a decision. Generally, insurance companies refuse to provide insurance to high risk applicants.
Why buy a life insurance policy?
Life insurance or Life Insurance Policy gives protection to the family from financial risk in the event of a person's absence. Suppose a person has bought a house by taking a loan and his children are studying in a private school. And it may also happen that he is the only person earning money in the house. If that person also dies due to some disease or accident, then in the event of his death, his family does not come on the road, because of this an insurance policy or insurance is necessary.
In case of non-availability of the person by taking insurance coverage, his family will get compensation from the insurance company, so that the future of the family can be avoided.
Read also: GEICO Business Insurance
How many types of insurance are there?
- Life insurance
- Health Insurance
- General Insurance
General insurance can also be called non-life insurance. This means, any insurance or insurance which is not covered by your life or which is not covered by life insurance is covered by “General Insurance”.
So, there are basically two types of insurance. Life insurance and general insurance.
What is life insurance?
Life insurance or life insurance is a type of insurance where a person regularly deposits premiums to an "insurance company" with the aim of earning a good amount (money) in the future or after a certain time after the death of that person.
If you have a family, and you only want to financially support your family, then it is necessary for you to have “Life Insurance”. “Term life insurance” is a type of insurance, where if the insured person dies due to any reason, after his death a certain amount is given to his family or the nominee (nominee).
What is health insurance?
The meaning of health insurance or health insurance is quite simple. “Health Insurance” will be the insurance to protect you from any future hospitalization expenses. If the person whose health insurance is to be hospitalized for future treatment, the cost of the hospitalization is paid by the “Health Insurance Company” on which you have paid the premium. However, before taking this type of insurance, it is very important to follow the rules and verify yourself.
Why are there requirements for health insurance?
Health insurance is very important today. Because today, even if you have to go to the hospital for the smallest reason, you will have to spend a lot of money. Once you have to go to the hospital, whatever the reason, money is sure to run out of your hands like water. So, if you have health insurance in this case, then in those bad times when you need a lot of money, you will not have to pay a single penny.
What is general insurance?
General insurance or general insurance is a type of insurance in which all types of insurance are there except life insurance or life insurance. That is, all types of insurance are general insurance which are not covered by human life. Or, it can be said that insurance of your valuables apart from your health and life is general insurance.
In general insurance, your valuables are insured in case of theft, loss or damage. Like accident insurance, travel insurance, vehicle insurance , building insurance etc.
Read this also: What is Join Life Insurance | Benefits of Joint Life Insurance Policy