Types, Importance, and Benefits of Insurance in Brief

A life insurance policy protects your family in the event of death due to an unfortunate event. At the basic level, it involves paying a small monthly amount called the premium. Depending on the coverage you choose, on the maturity of the policy, you will receive the amount of return that the policy would have earned over the years. Also, in case of the untimely death of the policyholder during the term of the policy, his family will receive a lump sum amount.

What is insurance?

A contract between a person/organization (policyholder) and a company in which financial security is guaranteed to the policyholder against future contingencies, and in return the policyholder pays a fixed amount (premium) from time to time. It is given annually or monthly to the insurer company, this is called insurance.

How many types of insurance are there

  • Life insurance
  • Motor insurance
  • Property insurance
  • Travel Insurance
  • Health insurance
  • Mobile Insurance
  • Cycle insurance and
  • Short term insurance

Health insurance

In today’s time, the cost of treatment is increasing a lot. By taking health insurance, the company itself bears all the expenses of the treatment, you do not need to invest a single penny in it. In a health insurance policy, the company pays the entire amount irrespective of the cost of any type of disease.

Automobile Insurance

Under the Motor Act, all types of motor vehicles have to be insured otherwise there is an invoice. Motor vehicle insurance provides financial protection to you, other people on the road, and your vehicle.
In the case of motor vehicle insurance, it provides you financial assistance for damages caused to the vehicle such as natural calamity damages or non-natural calamities such as theft accidents.
The best third-party insurance in auto insurance is the best protection in case of accidental damages that do not put you under any kind of financial burden.
Often road accidents happen while on leave and while on duty. Having third-party insurance protects you from financial troubles in case of physical harm or death of a person.
home insurance

Home insurance,

protection is given to the house and its contents, it is also one of the types of insurance. Compensation is given by the insurance company in case of loss of house due to natural calamity or theft of household items.
Most people do not get home insurance, but such policies are very cheap and their benefits are also more, we have discussed this topic in detail in our separate post.

Travel Insurance

If you travel a lot, then travel insurance is very important for you. If you are going on a foreign trip, then if there is any kind of damage to you or your belongings, then the insurance company pays for it. Apart from this, it also protects against damages caused by flight delays or cancellations. Also, if you are admitted to the hospital during the journey, then the insurance company also pays the cost of your entire treatment.


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