What is Insurance?
What is Insurance? Today we will know about this Hello friends, welcome to all of you. Insurance means to protect against imminent danger. That is, insurance is an option to cover the risk associated with your life and property, but why should one get insurance? It is also important to know how the insurance works and the types of insurance, so that you can choose the right insurance according to your needs.
In this article we have brought for you all the necessary information related to insurance. So let’s start and first of all know the proper meaning of insurance. It is a legal agreement between two parties.
The insurance company and the person carrying the insurance, according to this agreement, when a person insures his insurance from the company, then the insurance company compensates the financial loss to that person in the future.
How Insurance works?
Under the insurance agreement, a fixed amount is taken by the insurance company from the insured person i.e. the insured person, which is called premium.
If the insured person suffers any kind of loss after taking the premium, then his loss is compensated according to the terms and conditions of the insurance policy.
Similarly, if a property such as a house car is insured, then in case of damage to the property or any other such situation, the owner of that property is compensated on the basis of the pre-decided conditions.
How many types of Insurance are there?
There are two types of life insurance and general insurance. But nowadays many types of insurance have become famous like travel insurance, so let us know about all these types.
1.Life Insurance
As its name suggests, this type of insurance covers the life of the insured person. That is, if the person who insures himself suddenly dies, then the company gives compensation to his family.
The importance of this life insurance increases greatly when the head of the household dies and he/she is the one who takes care of the financial security of the family’s in such a situation, in the absence of that person, his family gets financial support.
2. General Insurance
General Insurance include Home Insurance, If I Talking about home insurance, many people get their home insured as well. By doing this their home becomes safe. That is, if there is any kind of damage to their house in the future, then it gets compensated by the insurance company.
This type of insurance covers damages to the house due to various natural calamities like fire, earthquake, flood. Apart from this, insurance is also given for calamities like strike, riot, theft and terrorism.
3. Health Insurance
Health problems have increased a lot these days when it comes to health insurance. Or to say that people have come veritably apprehensive. Thus, the cost of health has also increased significantly. In such a situation, if you take health insurance, also in case of any illness, the cost of treatment is covered by the insurance company.
How important treatment will be covered by the insurance company will depend on the terms of the policy taken by you. It’s important to note then that the benefit of a health insurance policy is available only in those hospitals that are attached to this policy. Apart from this, there are health insurance policies these days which can give insurance security to your entire family.
4. Car Insurance
Let’s talk further. Motor or auto insurance is mandatory in our country to get vehicle insurance and not doing so attracts a fine. Under this insurance policy, the insurance company gives compensation for the damage caused to your vehicle i.e. whether it’s a auto or a two wheeler.
5. Crop Insurance
Let’s talk about crop insurance next. For similar growers who take agrarian loan, it’s veritably important to take crop insurance. In this insurance, the damage caused to the crop due to any reason is compensated by the insurance company.
6. Business Liability Insurance
Now let’s talk about Business Liability Insurance. This compensates for the loss caused to the consumer by the work of a company or any of its products. That is, if there’s any loss to a client due to the functioning of a company or any of its products. Business Liability Insurance.
7. Travel Insurance
Now let’s talk further about trip insurance. Trip insurance is also veritably important in trend these days and this insurance protects against losses during traveling. That is, if a person who has got his trip insurance.
So the company gives its compensation to that person. The time limit of this policy is from the beginning of your trip till the end of your trip. Apart from this, trip insurance is also available for small and big trip done within the country.
Now-a-days, if you use the application and mostly to book a cab, also you also see the option of insurance there. In just one or ₹ 2. Along with this, when you travel by aero plane, you also see the option of insurance. It’s your choice whether you want to select it or not.
There is a lot of stress in your mind about your family, about your home, then the best thing is to take insurance and keep it so that your stress ends because there are some things which are not in our hands and if you feel That often people keep telling you this, then I am sure you have the answer whether you have to take insurance or not.
