What is insurance? Types of insurance?
- Insurance could also be a legal contract between two parties- the insurance company (insurer) and thus the individual (insured), wherein the insurance company promises to catch abreast of financial losses thanks to insured contingencies reciprocally for the premiums paid by the insured individual. In simple words, insurance could also be a risk transfer mechanism, where you transfer your risk to the insurance company and acquire the duvet for loss that you simply simply may face thanks to unforeseen events. and therefore the quantity that you simply simply buy this arrangement is known as premium. there's insurance available for various risks, starting from your life to mobile phones that you simply simply use. within the top , it’s essential to protect what's ‘important’ to you.
Types of insurance?
- Types of insurance available
- There are various sorts of insurance products available in India. Mainly, insurance products are classified as:
- Life insurance products
- General insurance products
- Life insurance covers you against the danger of death. life assurance policies are available many variants like term plans, endowment plans, whole life assurance plans, a refund plans and unit-linked investment plans etc. Many life assurance products are often an excellent tool for long-term savings also because it comes as a mixture of protection and savings. General insurance products cover financial losses caused by various risks aside from death. General insurance products are available various types covering a good range of risks like insurance , motor insurance, marine insurance, insurance , travel insurance and commercial insurance etc.
- Insurance is an efficient risk management tool that protects what's precious for us –life, health, home and businesses etc. the need of insurance may vary from one individual to a different , but there are certain sorts of insurance products that are must-have for each individual for ensuring a secure future.
