Unexpected events can cause havoc in your family’s life. There are many types of insurance policies available in India for life, health, and general that provide financial protection to you and your family members. You can also choose to insure your property and assets. It is important to fully understand the various types of insurance policies before you purchase an insurance policy. Then, choose the one that best suits your needs.
What Insurance Types Should You Know
Insurance is a legally binding agreement between an individual (or a company) and an insurance company. It promises financial protection (Sum assured) against unforeseeable events for a specified amount (premium). There are two types of insurance available in India.
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There are many types of insurance policies available in India
These are the insurance options available in India.
1. General Insurance
These are just a few of the many types of insurance that India offers:
- Health Insurance
- Motor Insurance
- Home Insurance
- Fire Insurance
- Travel insurance
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2. Life Insurance
There are many types of life insurance. These are the most popular types of life insurance available in India.
- Term Life Insurance
- Whole Life Insurance
- Plans for Endowment
- Unit-Linked Insurance Plans
- Plan for Children
- Pension Plans
3. General Insurance
General insurance policies offer coverage in the form a sum assured against losses other than death. General insurance is a combination of different insurance policies that provide financial protection against loss resulting from liabilities like bike, car and home insurance. These insurance policies can be categorized as:
4.Health Insurance
Insurance policies that cover medical expenses are called health insurance. The amount you pay towards treatment for any illness or injury can be reimbursed or paid by health insurance. Diverse types of insurance policies cover different medical care expenses.
It is usually used to protect against:
- a) Hospitalization
- b) Care for critical illnesses
- c) Post-hospitalization medical bills
- d) Daycare procedures
A few types of insurance policies also cover pre-hospitalization and resident treatment costs. Health insurance is becoming a necessity due to rising healthcare costs in India. There are many types of Indian health insurance plans:
1) Individual Health Insurance: Provides coverage for an individual
2) Family Floater Insurance – Allows you and your family to be covered under a single plan that usually covers spouse, husband, and two children
3) Critical Illness Insurance: This is a special type of insurance that covers various life-threatening conditions like stroke, heart attack and kidney failure. A lump sum amount is paid to policyholders upon diagnosis of critical illness.
4) Senior Citizen Health insurance: This type of insurance is for all people over 60.
5) Group Health Insurance: Provided by an employer to employees
6) Maternity Health Insurance – This type of insurance covers prenatal, postnatal and delivery medical expenses, providing protection for both mother and baby
7) Personal Accident Insurance
5.Motor Insurance
Motor insurance is a type of insurance that provides financial assistance in the event your car or bike gets in an accident. There are many types of motor insurance policies available in India.
1) Car Insurance: This plan covers four-wheelers owned by an individual. Car insurance policies include comprehensive and third-party insurance.
2) Bike Insurance: This type of insurance covers two-wheelers that are owned by an individual against any accidents
3) Commercial Vehicle Insurance – This insurance type covers any commercial vehicle.
6.Home Insurance
A home insurance policy provides comprehensive coverage for your house and contents against physical damage or destruction. This insurance type covers you against all natural and man-made disasters, including fire, earthquake, tornado and burglaries.
There are many types of home insurance policies
1) Home Structure/Building insurance – Protects your house from damage in any natural disaster
2) Public Liability Insurance – Covers damage to guests or third-party residents of the property.
3) Standard Fire & Special Perils Insurance – Protection against fires, natural disasters (e.g. earthquakes, floods, landslides and rockslides), as well as anti-social human-made actions (e.g. strikes, explosions and riots).
4) Personal Insurance – Protects you and your family from any type of sudden death or permanent dismemberment anywhere in the world.
5) Burglary & Theft Insurance – Provides protection for stolen goods in the event of a burglary, theft, or other incident.
6) Contents insurance – Covers the cost of replacing furniture and vehicles in the event of fire, theft, flood or riots.
7) Tenants Insurance – Protects you as a tenant against loss of personal property while living in a rented home.
8) Landlords insurance – Covers you as a landlord against potential contingencies like public liability or loss of rent
7.Fire Insurance
Different types of insurance policies that cover fire damage include fire insurance policies. They provide insurance coverages that pay for any damages resulting from a fire. These policies usually offer a substantial amount of coverage that can help individuals and businesses reopen their doors after sustaining extensive fire damage. These types of insurance also cover losses due to war, turmoil, and riots.
There are many types of fire insurance available in India.
1) Valued policy
2) A Specific Policy
3) Floating Policy
4) Consequential Policy
5) Replacement Policy
6) Comprehensive fire insurance policy
8.Travel insurance
Travel insurance, as the name implies, is a type insurance policy that provides financial protection for you and your family while you travel anywhere in India or overseas. Travel insurance will ensure that you have a safe and enjoyable trip, no matter if you’re traveling alone or with loved ones.
Travel insurance policy coverage covers any problems you might face on your trip, such as lost baggage, flight cancellations or loss of passport. It also covers personal and medical emergencies. There are several types of travel insurance policies:
1) Domestic Travel Insurance: Within the Country
2) International Travel Insurance: To cover any trip or vacation outside India
3) Individual Travel Insurance: For those who travel alone
4) Student travel insurance: For students who are studying abroad
5) Senior Citizen Insurance: This insurance is for senior citizens who are between 60 and 70 years old
6) Family Travel Insurance: To cover family vacations
9.Life Insurance
Life insurance policies provide coverage for unfortunate events such as death or disability. There are many types of life insurance policies, which offer financial protection as well as the ability to increase savings by regular contributions to different equity and debt funds options.
To protect your family’s financial future from the uncertainties of life, you can purchase a life insurance policy. If you are ever in need of financial assistance, the policy coverage covers a substantial amount that is payable to your family members. This insurance type allows you to select the coverage amount, policy duration, and payout option that best suits your financial needs. These are the types of life insurance policies:
- Term Life Insurance
- Whole Life Insurance
- Plans for Endowment
- Unit-Linked Insurance Plans
- Plan for Children
- Pension Plans
Term Life Insurance Plans
Term insurance is one of the most affordable types of insurance. You can choose a life insurance policy that provides a lifetime coverage for a specified period. A term life insurance plan can help you secure your family’s financial future by paying a low premium.