Insurance
Insurance word refers to the assurance of something or someone.
In English terms, insurance is an agreement between the insured and the insurer. An insurer (insurance company) promises to bear all the financial or health aspects of the insured’s risk-covered by the insurance company.
There are many types of insurance.
But some are very common & well-known are motor insurance and non-motor insurance.
1) Health insurance
Health insurance is also known as medical insurance; a person who takes health insurance should mention all the peds before taking health insurance. The insurance company will provide health insurance primarily to the customers who are healthy because insurance is nothing but to cover all medical expenses of the person in the future; for every health insurance, a 30-day waiting period is common. It is also known as the activation period, but day 1 coverage is applicable in case of accidents. Expenses related to the hospitalization for 24 hrs are only covered by the insurance company.
At the time of COVID-19, health insurance companies played a major role in saving COVID-19 patients financially.
2) Life insurance
Life insurance also includes term insurance, savings insurance (sip), and investment insurance; life insurance mainly helps to achieve our goals or achieve our lifetime targets; many parents take life insurance to fulfill their children’s dreams like children’s marriage, children’s education, job settlement, etc., and also they can plan for retirement, pension schemes and what not! Every achievement needs money savings. We can save money at banks, but more than banks, life insurance companies provide more interest and more returns, including coverages for health issues and accidental deaths. Simply put, life insurance is the replacement for the financial support of your family.
3) Motor insurance
Motor insurance, in simple words, coverage for vehicle risks in the future actually motor insurance is mandatory in India, so every vehicle that moves on the road will definitely hold third-party insurance because it is coverage to the third party while we are driving a vehicle; suppose we met an accident our insurance covers the third party risk to avoid any police cases on us. Also, all vehicles should hold full insurance; it covers the policyholder, vehicle risks, and third-party risks, and the insurance company covers all the risks related to the vehicles.
4)Travel insurance
Travel insurance is used when a person travels to another city, state, or country. There are two types of travel insurance: domestic and international.
Domestic insurance is nothing but the inner boundary of India, and international insurance is nothing but the outer boundary of India; the minimum days of travel should be 60 days for travel insurance. Travel insurance covers the risk to you and your personal belongings and also covers accidental death; international insurance is mandatory in some countries.
There are some more insurance like marine insurance, fire insurance & burglary insurance.