What is Insurance? Definition of Insurance, Insurance Meaning
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What is Insurance..? What are the types of insurance..?
Life always has surprises in it. Unexpected events can derail our lives anytime. It is wise to anticipate and prepare ourselves for the unexpected. One such smart venture is insurance. In simple words,it is a wonderful weapon that helps to transfer risk.
It has been offered in many forms and methods for a long time. This practice was practiced in ancient times by groups who followed the ritual of burying the dead. A certain amount was collected from each family in that group. The amount was paid to the family of the person who buried the body in case of any harm. It was considered a reward for a person who meets danger. It is considered primitive by it. Because a person facing danger is protected by the people belonging to that group
In modern times, the group is run by individuals or a company. They run this group for profit. The insurance company that faces the risk collects the premium amount from all the members of the group and then pays the amount to whoever actually suffers the loss. Then they take their profit and give the remaining amount.
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About Life Insurance
Life Insurance Imagine a married couple with young children. If the earner’s death occurs suddenly then it will not able to support the future of the family. Then the insurance will save the family. To get insurance protection, you have to pay a certain amount of premium every year. During the period of risk, i.e. during the policy’s lifetime, if the insured person dies, the sum assured (the sum assured) will be available to the insured person’s family in total.
It is considered to be a very simple type of insurance. This is called a term plan. a) In most cases the company increases the price of your insurance in many cases on your behalf. From the income due to that investment, the expenses required for the investment are deducted and the remaining amount is returned periodically (money back) or in a lump sum (term plan) at a specified interval.
It is the practice of insurance companies to provide a small sum assured in such cases. The amount returned to the insurer is decided based on the income generated by the investment and the expenses incurred by the insurance company.
Investment Plans in Insurance Policy
Investment in mutual funds if the difference is invested in mutual funds by an insurance company, the type of insurance is called ULIP type of insurance. In this type of insurance, there is no guarantee of a refund. Depending on the market conditions, the Refunded amount will also be included indeed. In this type of insurance, the insurance is tied to market conditions.
Key Man Insurance
This type of insurance is generally taken out by the company to cover the unexpected death of a key man of a company i.e. manager or executive.
A health insurance med claim or hospital expenses cover policy is an insurance policy that helps cover unexpected hospital expenses incurred by a person in case of hospitalization due to illness or accident. This is valid only for hospital admissions in India only.
Critical Illness Insurance
Critical Illness Insurance is insurance that helps you cover losses due to a very serious illness. It covers your loss due to diseases like stroke, organ failure, cancer, etc. In this plan, your sum insured will be paid in full regardless of your medical expenses. Generally, this plan only covers diseases that have serious consequences for you and cripple your future. This scheme is designed to help you in your future by earning interest income from a large sum of money in this scheme
Daily Cash Payment Plan
This plan pays a specified amount for each day you stay in the hospital. The money you get in this plan is not really dependent on the cost you incur. This plan covers you for unexpected hospital expenses like transportation costs, attendant costs, loss of your wages etc. Usually, these types of expenses are not covered by your Medi claim plan.
- Life Insurance Life insurance is one of the traditional forms of insurance, designed to protect you and your loved ones against a sudden calamity or disaster. It was originally designed for the protection of families. But since then, it has changed from a conservation measure to an option for wealth preservation and tax planning. A person’s need for life insurance is calculated based on various factors such as the number of dependents, current savings, financial goals etc.
- Any type of coverage other than general insurance life comes under this category. There are different types of insurance that cover every aspect of your life depending on your needs:
- Health Insurance This covers medical and surgical expenses that may occur during your lifetime. Generally, medical insurance offers cashless facilities in listed hospitals.