In this post, we will understand the different types of insurance policies in India,
although there are a various number of policies and policy providers in the market
they come under these major 5 categories are as below:
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Life Insurance
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General Insurance
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Health Insurance
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Child Insurance
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Auto Insurance
1. Life Insurance:
Life insurance is a policy that provides financial stability to your family in case of any future uncertainty
and an ashore profitable return will be provided to the policyholder by the insurance company.
2. General Insurance:
Any insurance policy except life insurance is covered under general insurance like it may be lost
due to fire, theft, and any accidental coverage is covered under this will be an insurance company,
these insurance are usually for the tenure of a year and are suppose to be renewed
on or before the expiry date.
This policy will provide the claim amount based on the Damage or valuation of the asset
set by them at the time of creating a policy whichever is less.
This policy can be made for a day or a lifetime depending upon the valuation and risk indiction to the asset.
Ex: A travel insurance on your ticket cost you not more than a rupees which are only
valid to the end of the journey or insurance on an expensive painting will is made till
the existence of painting, although there may be no risk exposed to you in the journey
in case of any uncertainty, it is considered to be beneficial.
General insurance covers the risk and provides us financial assistance only in the case of loss unlike
Life insurance does not refund us the premium amount after the expiry of the policy tenure.
3. Health Insurance:
Health insurance provides us with medical cum death coverage benefits to the policyholder,
But in the case of life insurance, the amount will only be paid in case of Death
or 70-80 % of the disability of the policyholder.
What if the customer doesn’t qualify for both the above-mentioned criteria then you have either
payout of your pocket or close the policy and withdraw the amount But in the case of health insurance,
the amount of any medical bills will be paid to the insurance policy to the extent of this agreement.
4. Child Insurance:
This is a form of insurance that is set for the specific purposes it will be for the children’s education
or the marriage purpose etc the amount can be used in the case of any emergency if not the amount can only be claimed after the maturity of the policy.
5. Auto Insurance:
This kind of insurance is no different than General insurance but are purely focus on the automobile,
like cars or any other vehicle, this kind of policy can only be claimed if there was theft or accidental loss,
Like general insurance, this policy also does not pay any money if there was no loss,
and it has to be renewed on or before the expiry of the policy.
Conclusion:
well, we have understood “What Are The Different Types Of Insurance Policies In India?”
but there is a factor that affects people while buying health insurance is premium,
a small price to be paid for the big risk, that is why you go for some of the government schemes
(LIC Bima Jyoti Plan No 860) that are low budget and even provide the risk-return guarantee.
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