What is Insurance : Definition, Types of insurance

What is Insurance : Heard many things from the mouths of many people. Take a house, take a flat, take vacant land, take gold, with the purpose of investment, No Doubt even today people say all these things. But the word which is already there in today’s day is not spoken too much. That brother, don’t do anything, then take insurance for sure. Now what is this insurance? What is Insurance? Today we will know about it.

Insurance means to protect against the coming danger ie insurance is an option to cover the risk associated with your life and property. But why should one get insurance? How does Insurance work? And Types of insurance?

It is also important to know all this so that you can choose the right insurance according to your need, so today in this article we have brought all the important information related to insurance, so read this article completely. So let’s know What is Insurance.

Also Read : Gym Motivation Quotes & GYM Captions for Status

What is Insurance : Types of Insurance

Insurance is a legal agreement that is made between two parties, the insurance company and the person insured, then according to this agreement, when a person gets his insurance i.e. insurance from the insurance company, then to compensate for the financial loss to that person in the future. If the insurance company does, then after knowing what is insurance, now we know how insurance works?

How does Insurance Works?

Under the insurance agreement, a fixed amount is charged from the insured by the insurance company. Which is called premium, if there is any kind of loss to that insured person after taking premium. So according to the term and condition of the insurance policy, its loss is compensated.

Similarly, if any property such as house, car is insured. So in the breakdown of that thing or in other situation, the owner of the property is compensated on the basis of the condition already decided. So now it is also important to know that how many types of insurance are there, how many types are there?

Types of insurance

Insurance is mainly of two types. Life Insurance and General Insurance But nowadays many types of insurance have become famous. Eg – Travel Insurance | So let us know about all these types –

1. Life Insurance :

As the name suggests, this type of insurance insures the life of the insured. That is, the person who insures himself. If he dies suddenly, the company gives compensation to his family. The importance of this life insurance then increases a lot. When the head of the household dies and he is the one who takes care of the financial security of the family.

So in such a situation, in the absence of that person, his family gets financial support. That’s why life insurance must be done. So that even when you are not there, your family can feel financially secure.

2. General Insurance:

Home, Vehicle, Health, Animals insurance are all included in this type of insurance.

(i) Home Insurance :

Talking about home insurance, many people also get their home insured. By doing this their home becomes safe. That is, if there is any kind of damage to their house in the future. So it gets reimbursed by the insurance company.

This type of insurance covers the damages caused to the house due to very natural calamities like fire, earthquake, flood. Apart from this, insurance security is also given for calamities like strike, riot, theft and terrorism.

(ii) Health Insurance :

Nowadays health problems have increased a lot or to say that people have become more aware. That is why the expenditure on health has also increased a lot. In such a situation, if you take health insurance, then in case of any disease, the cost of treatment is covered by the insurance company, how much cover will be given by the insurance company in the treatment, it will depend on the terms of the policy taken by you.

It is important to note here that the benefit of health insurance policy is available only in those hospitals. who are attached to this policy. Apart from this, nowadays there are health insurance policies that can give insurance security to your entire family, so give priority to such a policy.

(iii) Car Insurance :

In our country, getting vehicle insurance is compulsory and not doing so attracts a fine. Under this insurance policy, the insurance company gives compensation for the damage caused to your vehicle, ie whether it is a car or two wheeler or three wheeler.

If your vehicle has caused injury to a person or an unintentional death of a person, then such cases are covered by the insurance company as third party insurance.

(iv) Crop Insurance :

It is very important for such farmers who take agricultural loan to take crop insurance. In this insurance crop, that is, the damage caused to the crop due to any reason is compensated by the insurance company.

(v) Business Liability Insurance:

This insurance compensates for the loss caused to the consumer by the work of a company or any of its products, that is, if a customer suffers any loss due to the work of a company or any of its products.

So in such a situation, the liability of the company to bear the fine and all the cost of legal proceedings lies with that insurance company. Which insures the Business Liability of that company.

(vi) Travel Insurance :

Travel insurance is also very much in trend these days and this insurance protects against losses during travelling. That is, if a person who has got his travel insurance done.

He goes abroad in connection with work or for the purpose of traveling and there he gets hurt or there are incidents like losing his belongings. So the insurance company gives its compensation to that person. The time limit of this policy is from the beginning of your journey till the end of your journey.

Apart from this, travel insurance is also available for small and big trips done inside the country. Nowadays, if you use applications and mostly to book cabs, then you also see the option of insurance there. In just one or two rupees, along with this, when you travel in the plane, you still see the option of insurance. It is your choice whether you want to select it or not.

Conclusion:

From now on you have come to know that What is Insurance: Types of Insurance? What are its benefits? How can it benefit you in the long term? Especially in that future, which you probably do not even know.

So God forbid this to happen to anyone, but still, if you are very concerned about your family, there is a lot of stress in your mind about your home, then the best thing is that you take insurance and keep it so that your stress ends. |

Because there are some things that are not in our hands and if you feel that people keep telling you this often, then I am sure that you have the answer whether you have to take insurance or not. Because this article has given you a lot of information. How did you like the article, you will definitely tell us by writing in the comment box, as well as share this article with friends.

If you want that everyone should take insurance. But if they are not convinced, then you can definitely share this article with them. With this, what do you want to know about next? Write to us in the comment box, we will try to answer your question as soon as possible.

Also Read : How much is Car Insurance in 2022