What is insurance and what are the types of it?

What is insurance? What are the types of it?

Insurance is an effective tool to avoid the possibility of any loss in life, no one knows when what will happen to us, that's why we insure ourselves from a safe company.

If a company insures any person, then that company itself will compensate for the financial loss with that person.

Similarly, if an insurance company insures a house, car and smartphone, then the insurance company pays compensation to the owner of the article in case of breakage, loss or damage to that item.

Insurance is actually a contract between the insurance company and the insured, under this contract the insurance company charges a fixed sum of money from the insured person and compensates the insured or the insured for any loss as per the terms of the policy.

What are the types of insurance?

  • life insurance
  • General Insurance

Life insurance covers the life of a person.

Life Insurance:- Life insurance means that if an insured person dies, then the insurance company gives compensation to that person.

If the head of the family dies untimely, it becomes very difficult to run the family expenses. It is necessary to take a life insurance policy to protect the wife, children, parents etc. of that person in the family from financial troubles. Financial planning first suggests a person to buy a life insurance policy.

General insurance covers house, vehicle, animal, health, crop insurance etc.

Home Insurance:-

If you get your home insured from an insurance company, then that insurance company takes the responsibility of indemnifying your house in case of any damage or loss.

This insurance policy covers coverage for any damage to your home. Coverage of damage to the house due to any natural calamity like fire, flood, earthquake etc. is also included. Artificial calamity also includes coverage of damage to the house due to fire, riots, theft, etc.

Vehicle Insurance:-

In India, it is very necessary to insure the vehicles plying on the roads according to the law. If you drive your vehicle on the road without insurance, then you can also be fined by the traffic police. If you insure your vehicle, then the insurance company will compensate the loss of that vehicle in case of any kind of damage to your vehicle like theft or any kind of accident with it.

You get the most benefit of Vinod Pal Singh when any person has been hurt or killed by your vehicle, then its compensation is covered under third party insurance. If you have a vehicle, then definitely get it insured.

Health Insurance:-

Nowadays, diseases are increasing very fast among people, so please do get health insurance so that the insurance company itself will compensate you for the cost of treatment of that disease. The expense limit of any insurance company depends on its insurance policy.

Travel Insurance:-

Travel insurance covers the loss caused to the insured during a journey. If a person goes abroad for some work or for roaming, then there is any kind of injury with him or his belongings are lost, then the insurance company gives compensation to that person. Travel insurance is valid from the start of your journey till the end of your journey. Different companies may have different conditions for travel policies.

Crop Insurance:-

It is very important for all the farmers who have taken agricultural loan to buy crop insurance. Under crop insurance, the crop insurance company will compensate the insured person for any kind of loss in agriculture such as fire, flood or loss of crop due to any disease, etc.

In case of crop failure, the companies survey all the fields around that farm to give compensation and after that, after getting the right conclusion and damage to the crops of most of the farmers, then only the farmers get the compensation for that crop.

Conclusion:-

In this article above, all of you have been told step by step about insurance, by reading all these steps, you can get good information about insurance, and also share it with your friends. Do it so that they can also get information about it.

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