How many types of insurance are there?,Insurance कितने प्रकार के होते हैं?

How many types of insurance are there?

Insurance is a cornerstone of financial planning, in which you, your dependents and your property are protected against financial loss in the event of an unfortunate event, in this post you will know about insurance ke prakar.

The concept of insurance is very simple where you pay a fixed amount called premium to the insurer who in turn provides a coverage and pays a pre-determined amount for the loss.

On the basis of your insurance cover, insurance is divided into life insurance and general insurance. Here you will find detailed explanation of both these types of insurance and their various aspects.

Here every question related to insurance has been given a detailed answer in this article like -

Bima ke prakar or Insurance ke prakar How many types of insurance are there?

Whole life insurance, term insurance kya hai

Life insurance types OR life insurance kitne prakar ke hote hai

Health insurance kya hai, insurance ke prakar, health insurance definition

What is Life Insurance?

Life insurance is one of the most important financial tools that helps your family to remain financially independent, clear the liabilities taken in the form of debt, maintain the lifestyle and keep the important goals of life on the right track. Is.

In life insurance, in case of premature demise of the policyholder within the policy term, the insurance company pays the sum assured to the family of the nominee.

Types of life insurance

1. Whole Life Insurance

2. Term Life Insurance

3. Endowment Plan

4. Money-back Policy

5. Unit Linked Plans

1. Whole Life Insurance –

This insurance plan provides you a coverage for the whole life. The term of the insurance policy for such plans is up to 100 years and as long as the premiums are paid, the policy benefits continue. If one wants to retain this insurance plan for life, then taking whole life insurance plan is a very good option.

2. Term Life Insurance –

Term life insurance is a pure protection plan that offers a great deal of coverage at an affordable premium. In term insurance, the sum assured is paid by the insurance company in case of death of the insured within the stipulated period of the policy. The sum insured received helps the insured's family to meet their daily expenses and pay off the loan. Term plans allow one to choose a sum assured amount of 15-20 times the annual income.

3. Scheme of Endowment –

Endowment plan is a plan of investment and insurance in a single product to cover life as well as for essential life goals. In this plan, a certain part of the premium goes as Sum Assured, while the rest is invested in a less risky avenue i.e. a business.

In case of death of the insurer during the term of the insurance policy, the nominee of the insurer receives the sum assured. This endowment plan meets the requirements of both insurance and investment simultaneously.

4. Money-Back Policy –

In this plan a fixed amount is paid out at pre-determined intervals during the term of the insurance policy, the rest are similar to insurance with money back policy endowment plans. For example, if a money-back policy is taken for a term of 20 years, a certain amount can be paid at the end of the 5th, 10th and 15th year of the policy term, and on completion of this insurance policy, the accumulated With the bonus the entire profit is paid out.

5. Unit Linked Insurance Plans (ULIPs) –

In this too, like endowment plans, a certain part of the premium goes towards providing life cover and another part is invested in the markets to earn returns. These plans provide an opportunity to earn capital from capital by investing in a single product and investing in insurance as well as life cover and a variety of riskier funds.

A ULIP plan works like a money back insurance plan, and also provides the facility of switching from one fund to another.

What is General Insurance?

General insurance, unlike life insurance, includes insurance for non-living property such as home, vehicle, health, travel, flood, fire, theft, road accident and man-made calamities.

1. Home Insurance

2. Motor Insurance

3. Travel Insurance

4. Health Insurance

1. Home Insurance –

A home insurance policy protects your home and its contents from damage caused to humans and natural calamities. Some home insurance policies give you coverage for temporary rent expenses during your home renovation.

2. Motor Insurance –

As the name suggests, this insurance is for vehicles which provides coverage to you in case of vehicle accident, vehicle damage, vehicle theft, vandalism, etc.

There are two types of this insurance, third party and comprehensive, in which third party motor insurance takes care of third party damages in case of an accident with someone caused by your vehicle. As per the Motor Vehicles Act, 1988, it is mandatory for every vehicle plying on the road to have third-party insurance.

On the other hand, comprehensive motor insurance

Comprehensive motor insurance policy, on the other hand, covers you from both third party damages and own damages, on damages caused due to flood, fire, riot, etc.

3. Travel Insurance –

If you are traveling abroad, a travel insurance policy covers your losses due to loss of baggage, flight delays and trip cancellations. In some cases, if you are admitted to the hospital during travel, you are treated by the insurance company in the hospital due to travel insurance.

4. Health Insurance –

Health insurance covers out-of-pocket expenses in case of a medical emergency. A health insurance plan is an indemnity plan that pays for hospitalization expenses.

In this plan, an insurance policy for the entire family is also taken together, which provides coverage for the treatment of any member of the family. On the other hand, critical illness plans which are fixed benefit plans provide a large sum of money for diagnosis of a particular type of illness.