What is Insurance? and How Many Types of Insurance - ProKeeda.com

What is Insurance? and How Many Types of Insurance

Do you know what is insurance and what are its types? Should we all get insurance for our Vehicle, home, health, life, Education, etc? If you have some doubts related to insurance in your mind. So you must read this post from beginning to end. After reading this post, you will be able to know why you should get insurance.

What is insurance and how many types of insurance. Life insurance, health insurance, education insurance, home insurance and car insurance.

Insurance is a good way to avoid the possibility of any loss in the future. We don’t know what is going to happen tomorrow. That’s why we get insurance to cover the possible loss in the future. If you have insured your car, shop, and smartphone. So in case that thing breaks, breaks, loses or gets damaged. The insurance company compensates its owner according to the pre-determined condition.

You all must be aware that both the life and property of human beings are surrounded by death, incapacity, and ruin. No one knows what is going to happen to him now. If an accident happens to you then you may suffer financial losses. At this time, insurance is very useful for the person, so that some financial losses can be compensated.

You all know that a few years ago, a person did not believe in life insurance so much. But in 2019, millions of people lost their lives due to coronavirus and Delta Plus variants. Out of which the financial condition of some of the houses became very bad. But those people who had got life insurance taking care of their family. He was given a fixed amount by the insurance company.

There is no information about how to get insurance and what it is. This will give you complete insurance information. And you will find the society to understand the importance of insurance for yourself, your family, car, etc.

What is Insurance?

The meaning of insurance is to protect against the coming dangers, that is, to cover the risk of your life and property. And this is a kind of legal agreement that is done between two people. First is the company from which you take the insurance policy and secondly you.

In this, the insurance company promises you that if anything untoward happens, the company will compensate for it. And if you suffer any loss, then the company compensates for it.

For example, suppose you have got car insurance and you have an accident or theft of the car. So in such a situation, the insurance company gives you the car to be repaired or gives you a new car. All these will be written in the policy of the company while taking the insurance.

Such events are called contingencies. Because these events have no right when they are going to happen. In this, the insurance company has to compensate for all the losses. Like he promised you while doing the deal.

Types of Insurance

Now we will know how many types of insurance are there. Although there are many types of it, today we will know about some important types of insurance.

  • Vehicle Insurance
  • Home Insurance
  • Life Insurance
  • Health Insurance
  • Travel Insurance
  • Education Insurance

Life Insurance

Life insurance as its name suggests that it is done for life. You buy all life insurance so that after your death your family is not dependent on anyone else. Whichever company’s life insurance policy you take, that company provides you a fixed amount to your family after your death.

Due to which your family gets financial support and the family does not depend on others. Life insurance must be done by those people who have only one earning person in their family. Because if that person dies due to some reason then the financial condition of that family becomes very bad. If the head of that family has got the policy done. So after his death, the financial support amount is provided by the company to his family.

Life insurance is a contract made between an insurance company and an insured. By getting life insurance, some kind of accident happens with the insured. So the insurance company provides a fixed amount to his family members. For this one has to make regular payments of a small amount for a limited period. A life insurance policy acts as a safety shield for the family.

Health Insurance

Health insurance is done to cover the cost of medical treatment. You have to get health insurance before you get sick. If you are sick and lakhs of rupees are being spent for your treatment. So you have to spend all that money out of your pocket.

But if you have health insurance, then the amount of money that is spent on your medical treatment. All that money is given by the insurance company. But the company pays the same amount at the time of treatment as you have got health insurance.

There are many countries like the USA, Canada, Australia, South Africa, France, etc. where all people get health insurance. So that if he becomes more ill then it does not affect the financial condition of his family. There are many countries like France, the US, Australia, Canada where health insurance is given more importance.

There are also many types of health insurance policies that cover different diseases and elements. You can also take a general health insurance policy. Which covers all types of treatment, hospitalization, and medication costs.

You and every member of your family should have health insurance. Because disease never comes by telling and in today’s era some disease continues to happen. Like right now the coronavirus is spread in all countries including America USA France China India.

Due to this, the health of crores of people has been affected badly. That is why every person should get health insurance for the safety of his family. So that if any member of the family gets sick, he does not have to spend much money.

Home Insurance

It is everyone’s dream to build his own house and a person works hard in his life to build a house. But after building a house, he must get home insurance. Because due to natural calamities like flood earthquakes, there is a lot of damage to property. And such disasters never come by telling. And whenever it comes, the scene of destruction is visible all around.

Sometimes earthquakes and floods cause a lot of damage to big buildings and houses. In such a situation, everyone must get home insurance to avoid that loss.

Most people in the US get their homes insured. Because it is like a protective shield for your home. This not only keeps the house safe but also personal things are not harmed. Not that any home insurance covers damages caused by floods and natural calamities. It covers everything that can damage your home.

If you have built a house and there is any kind of damage to your house. For example, in case of fire or natural calamity, or other things, you are compensated by the company.

Education Insurance

Education insurance is for depositing money for the proper education of your children. And you get the money as a lump sum amount at the right time. For the proper education of their children, many people get education insurance done.

Education insurance should be done by the parents of all the children because it facilitates the higher education of the children. When the child grows up from the youngest, he enters college. And does big courses for which more money is needed. If you have got education insurance then you will not have much problem at that time. And you can very easily get your children higher education.

Vehicle Insurance

Vehicle insurance covers cars, buses, bikes, trucks, etc. Because all these are only one type of option, everyone should get vehicle insurance. Because trouble never comes by saying that vehicle accidents happen every day. Due to this, there can be heavy damage to your vehicle, to avoid which all people should get their vehicle insured.

We get the biggest benefit of this when our vehicle gets damaged due to natural calamities. And when vehicles are stolen, vehicle insurance is very useful at such times.

In countries like the USA, Australia, France, Canada, South Africa, all people get their vehicles insured. Because they know that vehicle accidents can happen at any time or vehicles can be stolen. For this, you need all the documents of your vehicle. If you have a vehicle policy. So if your vehicle is damaged and stolen, your loss is compensated by the company.

Travel Insurance

If you need to travel frequently for office work. Or if you are fond of traveling then you must know about travel insurance. If you are not aware of this, then you must first get travel insurance. Because the way Life Insurance for Health Insurance is necessary. In the same way, travel insurance is equally important for our life.

In travel insurance, if you have any kind of mishap, accident, health problem, theft of luggage, or missing a flight, which is a problem. So at this time, the travel insurance company gives you fair compensation. Insurance is not only for traveling but also for domestic travel. Nowadays, most people go somewhere during their daily routine. In such a situation, you should get travel insurance so that nothing untoward happens to you.

People from foreign countries get more travel insurance. Because they are more worried about traveling from one country to another. Or a person who needs to go from one city to another city or from one country to another for his business. Such a person must have travel insurance. This policy is taken more in countries like the Philippines, Spain, South Korea, Brazil, Dubai, Vietnam, etc.

How to Claim Insurance

If you do not know how to make an insurance claim. So now we know how to claim insurance.

  • You have to first make your claim against your insurance policy.
  • Now you have to provide all the details regarding your loss which you have suffered. It differs from insurance to insurance.
  • Then you have to submit all the bills/proof of your damage, loss, hospitalization, etc.
  • Now your work ends here, now the insurance company will verify your claim.
  • Whereas if your claim is proved correct then you get your claimed amount, according to your loss.

Advantages of Insurance

If you want to get insurance then you must know about its benefits. Insurance provides a lot of benefits to any individual, family businessman, business as well as society. Now we know what are the advantages of insurance.

  • Insurance company has a big hand in carrying forward the business easily. Because this divides the loss of the company.
  • By taking insurance, the risk of business is very less. With which you can easily trade in the international market.
  • If you have taken a policy, then you can take a loan from the insurance company. For this, the company keeps your policy according to the collateral.
  • If the head of your family is going to die and that person has a life insurance. So the people of that family get the financial support amount fixed by the policy.
  • To get insurance, we have to deposit some money every year. Due to which we become habit of saving.
  • It reduces the risk of the people who otherwise could have caused big losses for them.
  • It is not possible to cover any untoward incident completely, but through this we can compensate to some extent.

Insurance Act 1938

Importance of Insure

Safety and Security: Insurance provides you with financial support which can cover the loss to some extent. Along with this, it provides safety and security to business and life.

Generates Financial Resources: Financial resources generate funds and collect premiums. And these funds are invested in government securities and the stock market. Such funds are used in the industrial development of the country.

Life Insurance Boosts Savings: Insurance not only protects against uncertainties and risks. Along with this, life insurance enables us to make systematic savings.

Medical Support: To manage the risk of health, it is very important to get medical insurance. We do not know when we are going to get sick if we get sick and you have medical insurance. So the company covers your expenses so that you get financial support.

Spreading the Risk: This reduces the chances of us making big losses and it helps to spread our risk.

Source of Funds Collect: This is a very good source for collecting funds. This fund is used for the economic growth of the country.

FAQ

What is the meaning of insurance?

Insurance is a contract between the insurance company and the insured. Insurance is an effective weapon to deal with the possibility of loss in the future. Under this contract, the insurance company takes a fixed amount from the insured. and indemnifies the insured person or the company in the event of any loss as per the terms of the policy.

How much is the insurance?

There are many types of insurance, but we will know about those policies which are used the most. Like Health Insurance, Life Insurance, Vehicle Insurance, Education Insurance, Travel Insurance, Home Insurance, etc.

How old is the insurance?

The insurance covers the risk after your death. In case of death of the insured due to an accident, the sum assured is paid in a lump sum to the family or the nominee. These plans are usually till the age of 85 years.

Which is the best insurance?

SBI Life eShield is the Purest term insurance policy that offers a range of benefits at an affordable premium.

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Last Word

There are many types of insurance in the world like life insurance, health insurance, travel insurance, vehicle insurance, general insurance, education insurance, etc. But we must get all this insurance to make our life easy.

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